According to reports from Chinese media My Drivers and Gizchina, Qualcomm is said to have confirmed that Huawei will no longer require their processors.

Amidst escalating tensions between the United States and China due to trade and technology restrictions, Qualcomm’s CFO reportedly confirmed that Huawei will not be procuring 4G chips from Qualcomm in the future, highlighting a significant shift in the global technological landscape.

The same reports mentioned that the U.S. has tightened export restrictions on Huawei, revoking licenses for semiconductor sales from both Qualcomm and Intel. However, the impact on Huawei in terms of smartphone processors is said to be limited.

Qualcomm once stated on May 7, 2024 that the U.S. Department of Commerce notified the semiconductor company of the revocation of the its license to export 4G and certain other integrated circuit products, including Wi-Fi products, to Huawei and its affiliates and subsidiaries, which would be effective immediately.

Huawei has been working on developing its own chipsets, particularly the Kirin series, which have been used in its flagship smartphones, in order to tackle with the ongoing trade tensions and restrictions imposed by the United States on Huawei’s access to advanced technology and components. Its latest smartphone Pura 70, launched in early May, is powered by the Kirin 9010 processor.

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According to a report from Korean media The Korea Economic Daily, Samsung Electronics Co. is planning to apply its 3nm process chips to its Galaxy series smartphones and smartwatches, posing a challenge to rivals Apple and TSMC.

The report cited industry sources on May 13th, stating that Samsung’s second-generation 3nm production line in South Korea is set to commence operations in the latter half of this year (2024). The first product to be manufactured on this line will reportedly be the application processor (AP) for the upcoming Galaxy Watch7, tentatively named “Exynos W1000,” which is expected to be unveiled in July.

As per the same report citing sources, the Exynos W1000 is set to utilize the semiconductor industry’s most advanced second-generation 3nm process, with computing performance and power efficiency expected to increase by over 20%. In comparison, the Apple Watch Series 9 utilizes a 5nm application processor.

On another note, industry sources cited by the same report revealed that Samsung’s next-generation flagship smartphone, the Galaxy S25, scheduled for an early 2025 release, will also feature the 3nm Exynos W1000 application processor. Samsung aims to unveil this technology ahead of the Paris Summer Olympics opening on July 26th, with a “Galaxy Unpacked” event scheduled for July 10th in Paris.

The mobile processor industry has entered the 3nm battleground. Per Wccftech’s previous report, it is rumored that TSMC’s N3E process is also used for producing products like the A18 Pro chip scheduled to be used in iPhone 16 Pro, the upcoming Qualcomm Snapdragon 8 Gen 4, and the MediaTek Dimensity 9400, among other major clients’ products.

Meanwhile, as per a report from another South Korean media outlet TheElec, Siyoung Choi, the President of Samsung’s Foundry Business, predicted during the annual shareholders’ meeting on March 20th that the second-generation 3nm process is expected to begin production in the latter half of this year, while production for the 2nm process is slated for next year.

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• [News] Apple M4 Incoming, Boosting TSMC’s 3nm Production
• [News] Rise of In-House Chips: 5 Tech Giants In the Front

(Photo credit: Samsung)

Looking at next-generation networks, a range of emerging technologies are playing pivotal roles. From ground-based B5G (Beyond 5G)/6G, Wi-Fi 7, and fixed wireless access (FWA), to non-terrestrial networks (NTNs) like low-orbit satellites, Taiwan-based companies are actively involved in shaping these developments. Going forward, the telecom sector is poised to see the integration of a new generation of terrestrial networks and satellite communication systems. This will ensure seamless wireless coverage across land, sea, and air. With Taiwan’s robust ICT industry playing a vital role, the forthcoming era of AI-enabled smart network promises boundless possibilities.

Involved in Establishing Industry Standards from the Beginning, Taiwan-Based Companies Have a Head Start in the Race for the 6G Technology

As new equipment for next-generation networks is being introduced to the market, the telecom sector widely anticipates that 2023 will herald the arrival of the 6G era. Many companies involved in this sector have also initiated their own 6G deployment strategies ahead of time. The scale of the 6G market is forecasted to exceed USD 40 billion in 2030, and the corresponding CAGR from 2023 to 2030 is projected to be 34.2%.

B5G/6G builds on the foundation of three major characteristics and usage scenarios of 5G: enhanced mobile broadband (eMMB), ultra-reliable low-latency communication (uRLLC), and massive machine-type communication (mMTC). Compared with 5G, B5G/6G promises communication speeds 10 to 100 times faster than 5G, with peak speeds reaching up to 1Tbps. Its latency is set to be just one-tenth of 5G, and its device connectivity is greater than that of 5G by 10 times. “The ITU-R Framework for IMT-2030” released by the Radio Communication Sector of the International Telecommunication Union (ITU-R) in June 2023, outlined three emerging usage scenarios for 6G: integration of sensing and communication, integration of AI and communication, and ubiquitous connectivity.

Analysts at TrendForce state that apart from having higher speed and lower latency, another prominent feature of 6G is its support for terahertz communication. This means that 6G will encompass not only existing ground-based networks as in previous generations but also low Earth orbit (LEO) satellites. Such integration will provide even more comprehensive network coverage. Moreover, 6G is closely intertwined with advanced sensing and AI functionalities, allowing for unprecedented optimization in end-to-end network performance, power consumption, and AI-enabled applications.

Unlike 5G, which mainly operates in the millimeter-wave frequency range (i.e., 24~71GHz), B5G/6G is going to bring about a significant advancement of utilizing higher-frequency millimeter-wave (mmWave) bands (i.e., 71~92GHz) and sub-terahertz (sub-THz) bands (i.e., 92~300GHz). It should be noted that terahertz bands (300GHz~3THz) are not a major focus in the development of 6G at the current stage.

In June 2023, 3GPP held its 100th member meeting in Taiwan, and local ICT companies that attended this event include MediaTek, Chunghwa Telecom, Foxconn, ASUS, Taiwan Mobile, Far EasTone, HTC, Quanta, Pegatron, Auden Techno, Rapidtek, and Askey Computer. Together, 3GPP and Taiwan-based companies are driving the advancement of 6G, and this collaboration will help Taiwan secure an influential position in the global telecom sector with respect to the development and market deployment of critical technologies.

With 2030 anticipated to be the inaugural year for 6G, many leading ICT companies have formulated forward-looking strategies. At this year’s Mobile World Congress (MWC 2024), Qualcomm unveiled the world’s first prototype of Giga-MIMO antennas designed to operate in the 13GHz band, thereby meeting the higher capacity needs of the upcoming 6G era.

Recently, South Korea’s SK Telecom has partnered with Intel to develop “Inline Service Mesh,” capable of reducing latency in 6G backbone networks by 70% and boosting service efficiency by 33%. SK Telecom has also joined forces with Nokia and NTT Docomo to expand the scope of testing and validation for “6G AI-Native Air Interface (AI-AI),” which can contribute to further improvements in the performance and energy efficiency of networks.

With a World-class ICT Industry, Taiwan Occupies a Crucial Position in the Supply Chain for FWA-related Products

With the easing of the COVID-19 pandemic, many governments around the world are rolling out broadband subsidy schemes to address the issue of the digital divide. In addition to optical fiber infrastructure, FWA is also expected to play a vital role in rapidly expanding broadband access as it can provide fixed network services through mobile networks. FWA has the advantages of being highly cost-effective and eliminating the deployment of cables. Therefore, it offers the greatest benefit for remote rural communities where network connection costs are high, as well as countries with low broadband penetration rates.

Presently, the US is leading the adoption of FWA, followed by Europe. Since many countries have strict regulations concerning the preservation of historical buildings and other kinds of landmarks, local telecom companies have to devise network deployment methods that do not damage or modify building structures or local environments. Moreover, emerging countries, too, are actively investing in the build-out of FWA infrastructure. Examples include the Philippines, India, Vietnam, Indonesia, Mexico, South Africa, and countries in the Middle East.

TrendForce estimates that the shipment volume of 5G FWA equipment reached approximately 7.6 million units in 2022, marking a 111% year-on-year increase. The projected shipment volumes for 2023, 2024, and 2025 are 13 million units, 18 million units, and 22.5 million units respectively, with the corresponding year-on-year growth rates coming to 71%, 38%, and 25%. Additionally, research from Ericsson indicates that by the end of 2021, the number of FWA connections was nearly 90 million. This figure is expected to triple to around 230 million by 2027.

Taiwan has emerged as a global supply hub for FWA-related products, boasting the world’s most comprehensive and technologically mature industry chain for networking equipment, optical fiber communication equipment, and semiconductor components. Examples of notable suppliers for telecommunication equipment include Sercomm, Alpha Networks, ZYXEL, Gemtek, WNC, Askey Computer, Arcadyan, and Hitron Technologies. As for Taiwan-based suppliers for products related to fiber optic communication, they include Landmark Optoelectronics, PCL-KY, Apogee, Truelight, and Luxnet. Turning to suppliers for semiconductor components purposed for networking applications, Taiwan’s MediaTek has long been a major player. Altogether, these companies are expected to sustain impressive performance.

Local Team Is Being Formed for the Development of LEO Satellites

The Russia-Ukraine military conflict, now entering its third year, has highlighted SpaceX’s Starlink as a critical communication technology, sustaining uninterrupted communication links among various units of the Ukrainian armed forces. The conflict has greatly bolstered the reputation of Starlink and reignited the world’s interest in LEO satellites. As early as May 21st, 2021, Taiwan’s Executive Yuan approved a plan to promote the development of the “six core strategic industries,” including the aerospace sector. The plan prioritizes the development of LEO satellites and related ground equipment. Now, Taiwan’s government has provided additional funding of over TWD 40 billion into the field of LEO satellites. Specifically, the government supports the manufacturing of satellites, establishment of a local launch site, and cultivation of industry professionals.

During the 2023 Taipei Aerospace & Defense Technology Exhibition, Wu Jong-shinn, Director General of the Taiwan Space Agency (TASA), announced that Taiwan had initiated its program for the development of orbital launch vehicles. The program aims to launch a 200-kilogram satellite into low Earth orbit by 2023, at altitudes ranging from 500 to 2,000 kilometers above the Earth’s surface. Moreover, TASA plans to launch Taiwan’s first LEO satellite to support the B5G network in 2026. TRITON (FORMOSAT-7R), Taiwan’s first satellite with 83% of its parts locally sourced, was successfully launched in October 2023. This event represents an important milestone in the development of Taiwan’s aerospace sector and the related supply chain.

The introduction of LEO satellite communication into the consumer market can be traced back to February 2023 when MediaTek showcased the world’s first 5G satellite communication smartphone at MWC. Additionally, Huawei’s Mate 60 and Apple’s iPhone 14 and Apple Watch Series 8, released in the same year, all feature support for satellite communication. However, the related functionality is limited to either sending emergency messages or SOS emergency services. Nevertheless, AST SpaceMobile subsequently launched the BlueWalker 3 in September 2023, thereby establishing the world’s first “direct-to-cell” mobile broadband network. With the integration of terrestrial and non-terrestrial communication technologies under 6G, people will be able to access internet connection everywhere.

Taiwan Is Building the Most Competitive Industry Chain for Wi-Fi 7 so as to Seize Future Demand

Currently, Wi-Fi 6/6E still dominates the wireless network market. However, with the Wi-Fi Alliance releasing Wi-Fi CERTIFIED 7, MediaTek has established a coalition for the creation of a related testing and certification platform. Specifically, MediaTek is assisting its partners such as ASUS, BUFFALO, Hisense, Lenovo, TCL, TP-Link, and others in launching various kinds of devices that support the Wi-Fi 7 standard.

The market outlook for Wi-Fi 7 is bright as this new standard brings significant improvements in terms of transmission speed and latency reduction. Apart from being 4.8 times faster than Wi-Fi 6/6E, Wi-Fi 7 has important new features such as multi-link operation (MLO) and multi-resource units that meet the performance demands from various services and applications (i.e., “ultra” with respect to high transmission speed, low latency, and high reliability). Moreover, compared to upgrades between previous generations, there is strong confidence within the market that Wi-Fi 7 will rapidly attain widespread adoption and a higher penetration rate.

In the market for Wi-Fi chips, competition for dominance in the Wi-Fi 7 segment has been heating up since Qualcomm launched the FastConnect 7800, the world’s first Wi-Fi 7 chip, in February 2022. While many chip suppliers are still developing the first generation of Wi-Fi 7 chips, market leader Broadcom sought to outdistance its competitors by launching its second-generation Wi-Fi solutions in June 2023. Broadcom’s second-generation Wi-Fi 7 APs include the BCM6765 for residential networking equipment and the BCM47722 for commercial networking equipment.

Following suit, Qualcomm also unveiled its second-generation Wi-Fi 7 chip, the FastConnect 7900, on February 26th of this year. Designed for smartphones, the FastConnect 7900 is the industry’s first solution with a built-in AI engine and is scheduled to hit the market in the second half of this year. Meanwhile, Intel has introduced the BE200, a Wi-Fi 7 module designed for integration with the motherboard of a desktop or laptop PC. Currently, wireless networking cards with the BE200 are now available for purchase.

Moreover, various kinds of products and components containing Realtek’s Wi-Fi chips have been released into the market as well. They include Acer’s laptops, Azure Wave’s wireless modules, RichWave’s RF ICs, VPEC’s power amplifier, and networking equipment from WNC, Sercomm, and Senao Networks. Shipments of these end products have been gradually ramping up. All in all, with a plethora of new products hitting the market, 2024 can be regarded as the inaugural year for Wi-Fi 7.

TrendForce’s research indicates that after a downturn in 2023, the global market for Wi-Fi chips is projected to reach USD 20.9 billion in 2024, with a year-on-year growth rate of 6.1%. The market is expected to expand further to USD 21.9 billion in 2025, with a year-on-year growth rate of 4.8%. Regarding the market penetration of Wi-Fi 7, devices adhering to this standard accounted for just 1% of total shipments worldwide in 2023. By 2024, this share is expected to increase to 8%; and by 2025, it is forecasted to grow to 18%. According to Wi-Fi Alliance projections, the number of devices with Wi-Fi 7 will surpass 233 million in 2024; and by 2028, the total number of Wi-Fi 7 products across all categories will surpass 2.1 billion.

Join the AI grand event at Computex 2024, alongside CEOs from AMD, Intel, Qualcomm, and ARM. Discover more about this expo! https://bit.ly/44Gm0pK

(Photo credit: Sercomm)

“The Dawn of Generative AI Has Come!” This new chapter in the course of human technological evolution was first introduced by NVIDIA’s founder, Jensen Huang. Qualcomm’s CEO, Cristiano Amon, also shares this optimism regarding generative AI. Amon believes this technology is rapidly evolving and being adopted for applications such as mobile devices. It is expected to have the potential to radically transform the landscape of the smartphone industry. Similarly, Intel has declared the arrival of the “AI PC” era, signaling a major shift in computing-related technologies and applications.

This year, AI is transitioning from cloud computing to on-premise computing. Various “AI PCs” and “AI smartphones” are being introduced to the market, offering a wide range of selections. The current year of 2024 is even being referred to as the “Year of AI PC,” with brands such as Asus, Acer, Dell, Lenovo, and LG actively releasing new products to capture market share. With the rapid rise of AI PCs and AI smartphones, revolutionary changes are expected to occur in workplaces and people’s daily lives. Furthermore, the PC and smartphone industries are also expected to be reinvigorated with new sources of demand.

An AI PC refers to a laptop (notebook) computer capable of performing on-device AI computations. Its main difference from regular office or business laptops lies in its CPU, which includes an additional neural processing unit (NPU). Examples of AI CPUs include Intel’s Core Ultra series and AMD’s Ryzen 8040 series. Additionally, AI PCs come with more DRAM to meet the demands of AI computations, thereby supporting related applications like those involving machine learning.

Microsoft’s role is crucial in this context, as the company has introduced a conversational AI assistant called “Copilot” that aims to seamlessly integrate itself into various tasks, such as working on Microsoft Office documents, video calls, web browsing, and other forms of collaborative activities. With Copilot, it is now possible to add a direct shortcut button for AI on the keyboard, allowing PC users to experience a holistic collaborative relationship with AI.

In the future, various computer functions will continue to be optimized with AI. Moreover, barriers that existed for services such as ChatGPT, which still require an internet connection, are expected to disappear. Hence, AI-based apps on PCs could one day be run offline. Such a capability is also one of the most eagerly awaited features among PC users this year.

Surging Development of LLMs Worldwide Has Led to a Massive Increase in AI Server Shipments

AI-enabled applications are not limited to PCs and smartphones. For example, an increasing number of cloud companies have started providing services that leverage AI in various domains, including passenger cars, household appliances, home security devices, wearable devices, headphones, cameras, speakers, TVs, etc. These services often involve processing voice commands and answering questions using technologies like ChatGPT. Going forward, AI-enabled applications will become ubiquitous in people’s daily lives.

Not to be overlooked is the fact that, as countries and multinational enterprises continue to develop their large language models (LLMs), the demand for AI servers will increase and thus promote overall market growth. Furthermore, edge AI servers are expected to become a major growth contributor in the future as well. Small-sized businesses are more likely to use LLMs that are more modest in scale for various applications. Therefore, they are more likely to consider adopting lower-priced AI chips that also offer excellent cost-to-performance ratios.

TrendForce projects that shipments of AI servers, including models equipped with GPUs, FPGAs, and ASICs, will reach 1.655 million units in 2024, marking a growth of 40.2% compared with the 2023 figure. Furthermore, the share of AI servers in the overall server shipments for 2024 is projected to surpass 12%.

Regarding the development of AI chips in the current year of 2024, the focus is on the competition among the B100, MI300, and Gaudi series respectively released by NVIDIA, AMD, and Intel. Apart from these chips, another significant highlight of this year is the emergence of in-house designed chips or ASICs from cloud service providers.

In addition to AI chips, the development of AI on PCs and smartphones is certainly another major driving force behind the technology sector in 2024. In the market for CPUs used in AI PCs, Intel’s Core Ultra series and AMD’s Ryzen 8000G series are expected to make a notable impact. The Snapdragon X Elite from Qualcomm has also garnered significant attention as it could potentially alter the competitive landscape in the near future.

Turning to the market for SoCs used in AI smartphones, the fierce competition between Qualcomm’s Snapdragon 8 Gen 3 and MediaTek’s Dimensity 9300 series is a key indicator. Another development that warrants attention is the adoption of AI chips in automotive hardware, such as infotainment systems and advanced driver assistance systems. The automotive market is undoubtedly one of the main battlegrounds among chip suppliers this year.

The supply chain in Taiwan has played a crucial role in providing the hardware that supports the advancement of AI-related technologies. When looking at various sections of the AI ecosystem, including chip manufacturing as well as the supply chains for AI servers and AI PCs, Taiwan-based companies have been important contributors.

Taiwan-based Companies in the Supply Chain Stand Ready for the Coming Wave of AI-related Demand

In the upstream of the supply chain, semiconductor foundries and OSAT providers such as TSMC, UMC, and ASE have always been key suppliers. As for ODMs or OEMs, companies including Wistron, Wiwynn, Inventec, Quanta, Gigabyte, Supermicro, and Foxconn Industrial Internet have become major participants in the supply chains for AI servers and AI PCs.

In terms of components, AI servers are notable for having a power supply requirement that is 2-3 times greater than that of general-purpose servers. The power supply units used in AI servers are also required to offer specification and performance upgrades. Turning to AI PCs, they also have higher demands for both computing power and energy consumption. Therefore, advances in the technologies related to power supply units represent a significant indicator this year with respect to the overall development of AI servers and AI PCs. Companies including Delta Electronics, LITE-ON, AcBel Polytech, CWT, and Chicony are expected to make important contributions to the upgrading and provisioning of power supply units.

Also, as computing power increases, heat dissipation has become a pressing concern for hardware manufacturers looking to further enhance their products. The advancements in heat dissipation made by solution providers such as Sunon, Auras, AVC, and FCN during this year will be particularly noteworthy.

Besides the aforementioned companies, Taiwan is also home to numerous suppliers for other key components related to AI PCs. The table below lists notable component providers operating on the island.

With the advent of generative AI, the technology sector is poised for a boom across its various domains. From AI PCs to AI smartphones and a wide range of smart devices, this year’s market for electronics-related technologies is characterized by diversity and innovation. Taiwan’s supply chain plays a vital role in the development of AI PCs and AI servers, including chips, components, and entire computing systems. As competition intensifies in the realm of LLMs and AI chips, this entire market is expected to encounter more challenges and opportunities.

Join the AI grand event at Computex 2024, alongside CEOs from AMD, Intel, Qualcomm, and ARM. Discover more about this expo! https://bit.ly/44Gm0pK

(Photo credit: Qualcomm)

Following the recent launch of the Arm-based PC platform processor Snapdragon X Elite, which received high market acclaim, Qualcomm is reportedly doubling down by venturing into server processors. This expansion is expected to further intensify the competition amid traditional server processor giants Intel and AMD.

According to a report from the global tech media Android Authority, following the launch of the Snapdragon X Elite/Plus processors, Qualcomm is internally developing a server processor with the codename SD1, featuring their custom Oryon cores.

Reportedly, Qualcomm’s next-generation server processor will be manufactured using TSMC’s 5-nanometer process (N5P), featuring 80 Oryon cores with a maximum clock speed of 3.8GHz, 16-channel DDR5 memory with a maximum transfer rate of 5600MHz, 70 PCIe 5.0 interface links, and support for CXL v1.1. It will use a 9470-pin LGA socket and support dual-socket server configurations.

Furthermore, the status of this project is currently unconfirmed, but Qualcomm partners reportedly received briefings about it at the end of 2021 and early 2022, aligning with previous rumors. This isn’t Qualcomm’s first foray into server processors; they previously launched the Arm-based Centriq series in 2017, which was discontinued a year later.

Read more

• [News] Qualcomm Advances into AI PC Market, Reportedly Adopting 4nm Process
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(Photo credit: Qualcomm)