W36September2014

BUSINESS & TECHNOLOGY INNOVATION REPORT

Week 36

2014

Prepared by

Ferhat Ünlükal

9/7/2014

} BUSINESS & TECHNOLOGY INNOVATION REPORT

} 2

BUSINESS & TECHNOLOGY INNOVATION REPORT Week 36

Headlines

Consumer Electronics (CE)

• Samsung said it will work on open standards technology with partners involved in making future home business.

• Samsung Electronics Co., Ltd. introduced the next generation in wearable technology.

• TheAllSeen Alliance announced Sony Corporation.

• Amtran expects to reach two million in shipments during 2014.

• Haier launched the U+ system, the world's first smart life platform.

• TCL is showing a console quality game streaming experience.

• Arcelik said it had mandated banks to issue bonds worth a maximum of 500 million Euro.

• IHS predicts that around 14,000 OLED TV units will be shipped in the U.S. this year, and that number will increase to close to 1.2 million units in 2018.

ICT

• Apple Inc is jumping into the mobile-payment market.

• Delphi Automotive PLC (DLPH) announced that it will be first-to-market with Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication technology.

• Foxconn Technology Group, the maker of Apple's iPhone, is investing at least 5 billion yuan (US$811 million) to develop electric car manufacturing in a Chinese province.

• Foxconn Electronics (Hon Hai Precision Industry) is looking to invest over CNY5 billion (US$813.82 million) in Shanxi province.

• Foxconn Electronics will invest US$2 million to acquire a 10% stake in AirSig.

• Gartner estimates the IoT market will grow almost 30 times, from an installed base of 0.9 billion in 2009 to 26 billion by 2020. It will result in $1.9 trillion in global economic value-add through sales into diverse end markets.

• The Internet of Nano Things (IoNT) is expected to grow from $4.26 billion in 2016 to $9.69 billion by 2020.

• The global market for smart wearables is forecast to reach about 275 million units.

• The Global Smart Glass market to grow at a CAGR of 19.19 percent over the period 2013-2018.

• The global market for wireless sensor devices reached nearly $1.2 billion in 2013. This market is expected to grow to $4.3 billion in 2019.

• Worldwide smart meter shipments are expected to grow from 94 million annually in 2014 to 116 million in 2023.

• the Industry control and Factory Automation market is projected to reach $301.9 Billion by 2020, from $171.2 Billion in the year 2013.

Flat Panel Industry

• LG Display has announced that it has started mass production of the world's first circular plastic OLED (P-OLED) display.

• LG Display has announced the opening of its first overseas LCD panel fabrication plant in Guangzhou.

• AU Optronics (AUO) is continuing to see orders for new display technologies sized 7- and 9-inch used in luxury vehicles.


} 3

• AU Optronics (AUO) expects the development of TV panels to have a strong focus on Ultra HD and curved applications.

• China Star Optoelectronics Technology (CSOT) is expected to reach 25 million in LCD TV panel shipments during 2014.

Semiconductor Industry

• Intel launched the new Intel® Core™ M processor.

• Broadcom aims to change that with a new wireless chipset.

• Philips, Samsung and Infineon have been fined 138mln euros.

• DivX and MStar announced that MStar HEVC TV SoC will be the first digital television chip to receive DivX® HEVC Certification.

• The total shipment for the magnetic field sensors in the year 2013 was recorded to be 6.5 billion units.

Service Industry

• Total telecom service revenue in Turkey to grow at a CAGR of 0.9%, reaching $13.6bn by 2019.

Retail and Payment Industry

• Barclays has announced the arrival of personal biometric scanners.

Consumer Electronics (CE)

Samsung

Smarthome System

• Samsung said it will work on open standards technology with partners involved in making future home business.

• "We will work with everyone who shares this vision and ensure that standards are open. We have started partnering with industry leaders to create interconnected solution and industry standards," Samsung Electronics President and CEO Boo-Keun Yoon said at IFA.

• As per a research there will be 45 million smarthome system installed by 2018 and smarthome market will grow to USD 100 billion by the same year.

Samsung’s stock performance

Gear VR Innovator Edition

• Samsung Electronics Co., Ltd. introduced the next generation in wearable technology, the Samsung Gear VR Innovator Edition, enabling users to fully immerse themselves in a cinematic virtual reality environment. Powered by Oculus technology, the Samsung Gear VR delivers a completely new way to experience and consume mobile content. It continues Samsung’s leadership in the wearable category through innovative technology and compelling design to expand the definition of mobile life.


} 4

Sony

Newest AllSeen Alliance

• TheAllSeen Alliance, the broadest Internet of Everything open source project, announced Sony Corporation as the newest AllSeen Alliance Premier Member. Sony joins 10 Premier Members -- Electrolux, Haier, LG, Microsoft, Panasonic, Qualcomm Connected Experiences, Inc., Sharp, Silicon Image, Technicolor and TP-Link -- and 53 Community Members united to overcome the interoperability challenges that impede the Internet of Things.

Sony’s stock performance

Amtran

LCD TV Shipments

• LCD TV maker Amtran expects to reach two million in shipments during 2014, with supply going to Vizio primarily for 55-, 65-, 75- and 85-inch units, accroding to industry sources.

• The company saw approximately one million in LCD TV shipments during the first half of the year and that number is expected to remain flat in the second half. The overall number will be less-than-expected for Amtran due to Vizio recalling 245,000 units that faced stand malfunctions, the sources said.

• Amtran expects the recall will push its overall shipments down in 2014 and that its profits from LCD TVs are likely to only slightly grow or remain flat as a result, the sources said.

• Meanwhile, the company expects it will ship mainly 65-inch LCD TVs in the second half that will sell for US$1,000 in the market in addition to various Ultra HD units, the sources added.

Amtran’s stock performance

Haier

U+ System

• In the era of internet, household makers worldwide have shifted to smart strategies at an accelerated pace. As a pioneer in smart home appliances, Haier launched the U+ system, the world's first smart life platform that will have a game-changing impact on the industry. The system, through an open interface protocol, creates a connected world where the home appliance makers can connect with each other freely and without barriers, allowing for "dialogues" across smart household brands and products by enabling a variety of home appliance products and services to be connected with the system. Based on this system, Haier provides one-stop smart lifestyle solutions across five themes: air, water, entertainment, body care and food.

• Taking food for example, Haier's U+ system-based smart refrigerator can memorize food materials and recommend a healthy menu to users according to their health status. A smart roaster quickly prepares foods that are best for the health of users by generating programmes that run automatically after receiving the


} 5

instructions from them. After enjoying the meal, users just need to put the dishes into a smart dishwasher, which programmes itself automatically in accordance with the menu of the users and the amount of grease marks left on the dishes.

• The innovative U+ platform enables free communications between human beings and home appliances and among home appliances that break the bounds that exit among brands to allow smart products of any brand to connect with the system. To date, nearly 300 companies, including the world's top-notch security firm Risco, Baidu Cloud, Tencent's WeChat, Jingdong Mall and Huofar, have joined the U+ platform. As the exclusive Chinese partner of Apple in the smart home appliances sector, Haier has formed a partnership with HomeKit in terms of the development of the first SIRI air conditioner using the U+ platform.

Haier’s stock performance

TCL

Game Streaming

• TCL, one of the world's fastest growing TV brands is showing a console quality game streaming experience at its IFA tradeshow booth in Berlin.

• Game streaming is a technology in which videos of major brands AAA, next generation video games are executed on a remote cloud server, and streamed over the internet directly to the TV set, without requiring a console or the game disc. The App is set to be

available on the Netrange App portal Europe wide for TCL consumers early next year, and bring a "Netflix-like" consumption model to next generation console games.

TCL’s stock performance

Arçelik

Issue Bonds

• Turkish white-goods maker Arcelik said it had mandated banks to issue bonds worth a maximum of 500 million euro (657 million US dollar).

• The bank said in a filing to the Istanbul stock exchange that it had mandated BNP Paribas, Citigroup and HSBC.

CE Market

OLED TV Market

• IHS predicts that around 14,000 OLED TV units will be shipped in the U.S. this year, and that number will increase to close to 1.2 million units in 2018.


} 6

ICT Industrry

Apple

Mobile Payment

• Apple Inc is jumping into the mobile-payment market, just as retailers upgrade their cash registers to be more secure and ready to receive wireless transactions.

• Chief Executive Officer Tim Cook is planning to unveil new iPhones, wearable devices and a mobile-payment system on Tuesday, people with knowledge of the matter have said. Visa Inc, MasterCard Inc and American Express Co, as well as banks and retailers, were forming partnerships with Apple to let shoppers pay with iPhones, and possibly using a device worn on the wrist, a person familiar with the plans said this week.

• Apple is targeting a market that is projected to jump to $90 billion in 2017 from $12.8 billion in 2012, according to Forrester Research. The dynamics are changing now, as most credit-card issuers push US merchants to upgrade their payment terminals to accept chip-based debit and credit cards. Those are more secure and usually capable of handling near field communication, or contactless, transactions. New iPhones would also include the wireless feature, the person said.

Apple’s stock performance

Delphi

Vechicle to Vechicle

• Delphi Automotive PLC (DLPH) announced that it will be first-to-market with Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication technology that significantly advances driver alerts.

• Delphi’s wireless vehicle communication technology extends the range of existing advanced driver assistance systems (ADAS) functionality. Radio signals transmit traffic data from car to car to alert drivers of potential road hazards; even those beyond the driver’s line of sight or out of the vehicle’s sensor range. This technology can signal to the driver a number of traffic situations ahead including road condition hazards, road work, emergency vehicle warning, stationary or slow moving vehicles, traffic jams, accidents, as well as traffic signals or signage indicators.

Delphi’s stock performance

Foxconn

Electric Car

• Foxconn Technology Group, the maker of Apple's iPhone, is investing at least 5 billion yuan (US$811 million) to develop electric car manufacturing in a Chinese province.

• The Taiwanese company is making the investment in China's Shanxi province, it said on Wednesday. Foxconn already has two factories in the province. One of these assembles smartphones while the other is devoted to producing


} 7

robots and automation equipment, it added.

• Foxconn has largely focused on electronics manufacturing for clients including Microsoft, Sony and Amazon.com. But the company is branching out into new business sectors, as a way to grow its revenue streams. Analysts estimate that it makes as much as half of its revenue from assembling Apple products.

• In June, Foxconn's CEO Terry Gou said that the company is targeting to build electric carswith a price of less than $15,000.

Foxconn’s stock performance

Investment in Shanxi

• Foxconn Electronics (Hon Hai Precision Industry) is looking to invest over CNY5 billion (US$813.82 million) in Shanxi province, China in 2014. Foxconn currently has two production hubs in the province and has already invested almost CNY20 billion there, according to company chairman Terry Guo.

• In the future, Foxconn will continue to invest in Shanxi's emerging industries such as electric vehicles.

Acquisition of AirSig

• Foxconn Electronics will invest US$2 million to acquire a 10% stake in AirSig, a Taiwan-based developer of digital signing technology, and apply the technology to information security for mobile devices, according to AirSig.

• Prior to the investment, Foxconn also invested in Norway-based Next Biometrics to acquire fingerprint identification technologies.

• Foxconn will also acquire a seat in the board of AirSig.

ICT Market

IoT Market

• IoT includes all other computing devices apart from PCs, tablets and smartphones. Currently, the rising mobile adoption worldwide is driving growth in the semiconductor market. IoT is still at a nascent stage, but it is expanding fast and is considered to be the next big growth driver in the semiconductor industry. Gartner estimates the market will grow almost 30 times, from an installed base of 0.9 billion in 2009 to 26 billion by 2020. It will result in $1.9 trillion in global economic value-add through sales into diverse end markets.

The Internet of Nano Things

• The Internet of Nano Things (IoNT) is expected to grow from $4.26 billion in 2016 to $9.69 billion by 2020, at an estimated Compound Annual Growth Rate (CAGR) of 22.81% from 2016 to 2020.

Smart Wearable Market

• The global market for smart wearables is forecast to reach about 275 million units, in volume terms, by 2019

• The smartwatch segment holds majority revenue share in the global smart wearable market and is forecast to maintain its dominance during the forecast period, supported by increasing demand for smartphones and tablet PCs globally. The Americas held the major share in the global smart wearable market in 2013, with the US being a leading market for


} 8

smart wearable devices within the region. Americas' dominance is largely due to huge IT spending in the region, where North America contributes to around 75% of the region's total spending. The smart wearable market in EMEA and Asia-Pacific is dominated by Germany and Korea, respectively.

Smart Glass Market

• The Global Smart Glass market to grow at a CAGR of 19.19 percent over the period 2013-2018.

Wireless Sensor Devices

• The global market for wireless sensor devices reached nearly $1.2 billion in 2013. This market is expected to grow to $1.5 billion in 2014 and $4.3 billion in 2019, with a compound annual growth rate (CAGR) of 23.7% between 2014 and 2019.

• Home automation and other indoor applications as a market segment is expected to reach $653 million in 2014. The segment is expected to grow to $1.6 billion in 2019, with a CAGR of 20.1% for the five-year period, 2014 to 2019.

• Energy infrastructure applications as a market segment is expected to reach $383 million in 2014. The segment is expected to grow to $1.1 billion in 2019, with a CAGR of 23.5% for the five-year period, 2014 to 2019.

Smart Meter Shipments

• According to a new report from Navigant Research, worldwide smart meter shipments are expected to grow from 94 million annually in 2014 to 116 million in 2023.

Industry Control and Factory Automation

• According to a recent market research report of "Industry Control and Factory Automation Market by Technology (ICS, MES, ERP, ITS), Field Devices

(Industrial Network, RFID, Industrial Robotics and Control Devices), Application (Process, Discrete) - Global Forecast & Analysis to 2014 - 2020", the market is projected to reach $301.9 Billion by 2020, from $171.2 Billion in the year 2013, with a CAGR of 8.53%.


} 9

Flat Panel Industry

LG Display

P-OLED Display

• LG Display has announced that it has started mass production of the world's first circular plastic OLED (P-OLED) display. The cutting-edge display will be used for the LG G Watch R to be showcased at IFA 2014 in Berlin.

• With a 1.3-inch diameter, the display is perfectly round and allows the LG G Watch R to have a full watch face, while promoting ease of use since the screen area is 57% larger than that of a square display of the same size, said LG. The P-OLED panel has an ultra slim thinness of less than 0.6mm, 320 by 320 resolution, 100% color gamut, 300nit peak luminance, and unlimited contrast ratio to enhance user satisfaction.

• LG said it aims to realize the original intentions of wearable devices by enabling the screen to be turned on at all times while using the least amount of power with the Power Save Mode (PSM), which enables the screen to retain the same resolution – even without a power supply – from the power integrated circuit.

• LG added it was able to achieve mass production of circular P-OLED displays by developing a circular mask that enables organic materials to be deposited simultaneously and a new production process that improves deposition efficiency while employing a highly precise laser cutting and processing technology.

LG Display’s stock performance

Investment in Guangzhou

• LG Display has announced the opening of its first overseas LCD panel fabrication plant in Guangzhou, China, expanding its presence by adding to its existing module assembly plant in the city.

• With plans to mass produce 40-plus-inch large-size LCD panels for TVs at the 8.5G plant, LG Display said it will further enhance its competitiveness in China, the world's largest LCD TV market.

• The new 8.5G (2,200mm by 2,500mm) LCD panel plant will be operated by LG Display China, a joint venture between LG Display, the Guangzhou Development District (GDD), and Skyworth, one of the leading China TV vendors and strategic partner to LG Display. LG Display contributed 70% of the US$4 billion investment in the plant on the 330,000m2 site, while GDD and Skyworth contributed 20% and 10%, respectively.

• "By operating our first overseas LCD panel plant in China, which has now became the world's biggest TV market, we are going to further strengthen our position in the country," said Sang Beom Han, CEO and president of LG Display.

• The LG Display China facility will mainly focus on producing 42-, 49- and 55-inch Ultra HD and Full HD panels, the company said, adding it will produce 60,000 sheets per month based on


} 10

input glass sheets in the initial stage of operation and achieve full capacity of 120,000 sheets per month by the end of 2016.

• The company is expecting improved cost advantages in terms of logistics and lower tariffs by locating in Guangzhou, close to major China TV vendors, including Skyworth, Konka, and TCL, operating in Guangdong Province, the firm added.

• Until now, LG Display's overseas production operations have focused on the manufacturing of modules in Nanjing, Guangzhou and Yentai in China as well Wroclaw, Poland and Reynosa, Mexico, added LG.

AUO

Vechicle Display

• AU Optronics (AUO) is continuing to see orders for new display technologies sized 7- and 9-inch used in luxury vehicles.

• The panels are high resolution, wide angle capacitive units with AHVA technology. Some makers are also producing 1.8-inch LTPS displays for use in vehicles.

• Innolux meanwhile is seeing increased orders for units sized 10-inch used in dashboard and entertainment applications.

• Additionally, Chunghwa Picture Tubes (CPT) is expected to ship 10 million in-vehicle displays during 2014.

AUO’s stock performance

Ultra HD

• AU Optronics (AUO) expects the development of TV panels to have a strong focus on Ultra HD and curved applications equipped with wide color gamut (WCG) technology in 2015, according to company president Paul Peng.

• Innolux meanwhile has noted it expects similar developments, with a focus on NTSC 100% Ultra HD units sized primarily between 50- to 85-inch that will be shipped to Japan-based customers.

• In terms of handset panels, AUO noted that roughly 70% of its shipments for smartphone panels in 2015 will be for Full HD and WQHD units sized 5-inch and above.

• Peng added China handset vendors are increasingly interested in using higher-end panels in new units released, including Xiaomi, Lenovo and Huawei Device, and that some vendors are likely to use LTPS TFT LCD technology.

• Between AUO's Singapore and Taiwan facilities, the company currently produces about 52,000 substrates of LTPS TFT LCD panels and may further expand production depending on customer demand, said Peng, adding that AUO is also focusing on production of a-Si panels to meet mid-range handset demand.

• Peng also said he believes tablet panels will move more toward the 8- to 12-inch range, and that more 2-in-1 units are expected to appear in the market.

CSOT

LCD TV Shipments

• China Star Optoelectronics Technology (CSOT) is expected to reach 25 million in LCD TV panel shipments during 2014 to hold a 10% global market share, driven largely by demand from China TV vendor TCL, according to Digitimes Research.

• The company made over US$1.38 billion in revenues during the first half of 2014, up 24% on year, and also


} 11

improved facilities and panel technologies. In addition, CSOT received increased funding from the China government and secured top engineering and management talent from abroad. These aspects coupled with driving LCD TV demand from parent company TCL has helped CSOT improve its performance and give it a competitive edge in the global panel arena, where it now ranks within the global top-five makers.

• By 2015, CSOT will have expanded its production capacity 21.9% on year and later by 70% in 2017 to fulfill growing demand for local panel supply in China in addition to TCL's demand, as the vendor continues to expand into markets outside China.

• CSOT will not surpass an 8% global share in Ultra HD TV panel shipments in 2014, which Digitimes Research believes is something the company should strengthen in order to further its presence in the TV panel market.

Semiconductor Industry

Intel

Core M Processor

• Intel launched the new Intel® Core™ M processor, which will power new 2 in 1 devices from a variety of manufacturers including: Acer*, ASUS*, Dell*, HP*, Lenovo* and Toshiba*. Delivering the optimal blend of mobility and performance, Intel’s new processor was purpose-built for amazing performance in the thinnest, fanless ultra-mobile devices. The Intel Core M processor can power razor-thin devices with Intel Core processor-level performance and deliver up to double the battery life when compared to a 4-year-old system.

Intel’s stock performance

Broadcom

650 Mbps new wireless chipset

• Broadcom aims to change that with a new wireless chipset that will boost theoretical connection speeds from a smartphone or tablet to the Wi-Fi router to 650 Mbps. That may not be gigabit speed, but gigabit speed was always a bit of misnomer anyway — it’s more an indication of overall network capacity rather than how quickly any given device could connect to the network.


} 12

Broadcom’s stock performance

Samsung

Fined by Euopean Commission

• Philips, Samsung and Infineon have been fined 138mln euros ($182m) by the European Commission (EC) for fixing prices of chips in used in smartphones, BBC News reports.

Mstar

Cooperation with DivX

• DivX, LLC, a leading provider of next-generation digital video solutions, and MStar Semiconductor, Inc., a global innovation leader in semiconductor solutions, announced that MStar HEVC TV SoC will be the first digital television chip to receive DivX® HEVC Certification, enabling the playback of highly efficient DivX HEVC Ultra HD (4K) video.

Semiconductor Market

Magnetic Field Sensors

• The total shipment for the magnetic field sensors in the year 2013 was recorded to be 6.5 billion units; the figure is expected to reach up to 9.6 billion units in 2020 at a CAGR of 6.75%. In value terms, this market stood at $1.8 billion in 2014 and is expected to reach up to $2.9 billion by year 2020, at 8.04% CAGR during the projected period.

Service Industry

Service Market

Telecom Service Market

• Total telecom service revenue in Turkey to grow at a CAGR of 0.9%, reaching $13.6bn by 2019, from an expected $13.0bn in 2014

• The mobile voice segment is still important, expected to contribute 39.6% of total revenue in 2014, while mobile data will produce $4.9bn or 36.3% of the total by 2019.


} 13

Retail and Payment Industry

Barclays

Biometric scanner solution

• Barclays has announced the arrival of personal biometric scanners to keep your Internet banking security firmly under your thumb.

• Gone are the days of fumbling with desktop card readers, phone authentication, and PIN codes as a finger scanner will be available to wealthy corporate banking clients from 2015, and the rest of us surely soon after.

Barclay’s stock performance

References

Flipboard

• if you want to reach the details of the news in the report, you can follow the recent report on web via https://flipboard.com/profile/ferhatunlukal and/or download flipboard application from Apple store, Google Play, Windows Store and Blackberry World and reach all reports and details on your smart mobile devices.

W36September2014

Technology

Transcript of W36September2014