The 2024 Computex Taipei has kicked off, with NVIDIA CEO Jensen Huang delivering a speech on the industry’s prospects and future amidst the AI wave. According to a report from Commercial Times, during a media interview on the evening of June 3, Huang revealed plans for NVIDIA to establish an R&D center in Taiwan within the next five years.

Jensen Huang pointed out that NVIDIA already has a great AI research team. He confirmed the importance of Taiwanese partners, stating that TSMC is very important to NVIDIA’s operations, as well as expressing gratitude to partners such as Foxconn, Quanta, and ASUS for their support.

Huang further mentioned that within the next five years, NVIDIA will set up a large design center in Taiwan, indicating that the GPU giant is looking for a very spacious location and will hire at least 1,000 engineers.

When asked by the media about the speculation regarding his meeting with AMD CEO Lisa Su, Huang revealed that he did not attend her speech but acknowledged that AMD is a great company. He mentioned that he doesn’t expect to meet Su but didn’t rule it out the possiblity completely, adding that if it happens, he would welcome it.

Read more

• [News] A Recap of NVIDIA’s Four Major Application Areas of New Technology from Jensen Huang
• [News] AMD Unveils MI325, Claiming 30% Faster Computing Power than NVIDIA’s H200

(Photo credit: AMD)

Astera Labs, a leading provider of AI server connectivity solutions, has announced that it will gather Taiwanese manufacturers to establish its first Cloud-Scale Interop Lab outside of Silicon Valley in Taiwan. According to a report from Commercial Times, the company will closely collaborate with major Taiwanese ODM clients, while key manufacturers such as Quanta, Inventec, Wistron, Wiwynn, and Foxconn are expected to benefit from this initiative.

The emerging AI company Astera Labs has surpassed a market value of USD 10 billion and is renowned for providing high-speed transmission interface solutions for AI servers. Founded in 2017, the company celebrated its new public listing on NASDAQ this March.

Per a report from Business Today, the company, headquartered in California, USA, specializes in Retimer chips used for transmission in cloud data centers. These chips mitigate electronic signal attenuation issues, making them widely adopted in the market following PCIe Gen 5.

In response to the rapid expansion of the AI server market, Astera Labs is following in NVIDIA’s footsteps by establishing an R&D center, the Cloud-Scale Interop Lab, in Taiwan.

• • [COMPUTEX 2024] The Rise of Generative AI Sparks Innovation across Industries, with Taiwan-based Companies Leading as Essential Partners in the Global Supply Chain

(Photo credit: Astera Labs)

Following NVIDIA’s launch of the new computing platform GB200, as per a report from Commerical Times, Taiwanese supply chain players including Quanta, Pegatron, Wiwynn, Wistron, Gigabyte, and Foxconn’s subsidiary Ingrasys have showcased their solutions and related cooling technologies based on the GB200 at the latest GTC conference, aiming to capture opportunities in the next-generation AI server market.

Quanta Cloud Technology (QCT), a subsidiary of Quanta Computer, demonstrated its systems and AI applications based on the NVIDIA MGX architecture, announcing support for the upcoming NVIDIA GB200 superchip and NVIDIA GB200 NVL72.

QCT showcased their NVIDIA MGX architecture systems, featuring the NVIDIA GH200 chip, employing a modular reference design. System manufacturers can utilize the NVIDIA MGX architecture to tailor models suitable for applications like generative AI, high-performance computing (HPC), and edge deployments.

Pegatron, on the other hand, has become one of NVIDIA’s global partners in advanced GPU computing technology, particularly with the latest NVIDIA GB200 chip. Reportedly, Pegatron is actively developing the GB200 NVL36, designed as a multi-node, liquid-cooled, rack-level platform dedicated to processing compute-intensive workloads. Equipped with the NVIDIA BlueField-3 data processing unit, it enables network acceleration in ultra-scale AI cloud environments and fulfills various GPU computing functionalities.

GIGABYTE, a key supplier of high-end AI GPU servers for NVIDIA last year, showcased their latest offerings at this year’s GTC exhibition. Their subsidiary, GIGABYTE Technology, unveiled the GIGABYTE XH23-VG0, a 2U server featuring the NVIDIA H100 GPU and GH200 architecture, capable of transferring data at speeds of up to 900GB per second. Additionally, they announced the readiness of their product line for the next-generation Blackwell platform, including HGX boards, superchips, and PCIe expansion cards, which will be released gradually over the coming months.

Meanwhile, Wiwynn, included in the first wave of suppliers for the NVIDIA GB200 NVL72 system, showcased its latest AI server cabinet solution based on the NVIDIA GB200 NVL72 at the GTC exhibition. They also presented their newest comprehensive liquid-cooled management system, the UMS100.

Ingrasys also showcased a range of innovations at the exhibition, including NVIDIA MGX architecture servers and the GB200 NVL72 solution. They also demonstrated advanced liquid cooling technologies such as the liquid-to-gas Sidecar technology and liquid-to-liquid Cooling Distribution Unit (CDU).

Read more

• [News] TSMC’s 4nm Process Powers NVIDIA’s Blackwell Architecture GPU, AI Performance Surpasses Previous Generations by Multiples

(Photo credit: NVIDIA)

The global laptop and PC market is gradually recovering, coupled with the rising trend of AIPC. Laptop brands, including Acer and ASUS, as well as major contract manufacturers like Foxconn and Quanta, have all released positive outlooks for 2024.

Semiconductor giants such as Intel, NVIDIA, AMD, Qualcomm, and others actively entered the AI PC chip market in the second half of 2023, positioning themselves strategically. Both laptop brands and terminal manufacturers have expressed expectations for this development.

Acer

Jason Chen, Chairman and CEO of Taiwan-based computer manufacturer Acer, stated on November 30th that they are currently tallying the sales performance of Acer during Black Friday and Cyber Monday, and the current results are satisfactory. Looking ahead to the PC industry next year, from an overall economic perspective, there are still many uncertain factors, but it appears to be better than this year.

Chen further pointed out that the impact of the pandemic has passed, inventory digestion has also concluded, and entering the traditional seasonal performance, the specific application of generative AI will bring a new wave of demand stimulation.

Regarding AI PCs, Chen emphasized that the transition to AI PCs will be a gradual process rather than a sudden occurrence. He anticipates this transformation will take place in both commercial and consumer markets in the future.

ASUS 

According to UDN’s report, ASUS, another major Taiwanese laptop manufacturer, emphasized the significance of AI PCs during its November investor conference. Co-CEO, S.Y. Hsu, highlighted that AI PCs represent a crucial turning point for the industry, promising a significant improvement in user experience and ushering in a new era for the PC industry.

While he acknowledged that consumer acceptance of AI PCs would take time to increase, he predicted that the penetration rate of AI PCs would reach single digits in 2024 and double digits in 2025, depending on the user experience and technological maturity of AI PCs next year.

Foxconn

For Taiwanese electronics contract manufacturer Foxconn, the outlook for the PC industry in the coming year is described as “very good” by Chiang Chih-Hsiung, General Manager of the B Group and Digital Health at Foxconn.

This indicates Foxconn’s positive expectations for performance in the PC-related industry. Foxconn had previously emphasized that, in addition to AI servers, it would collaborate with customers to expand its presence in the AI PC sector in 2024.

Quanta

In a public interview on November 30th, Chairman Barry Lam of Taiwanese electronics manufacturer Quanta discussed the overall outlook for the next year, emphasizing the role of generative AI in shaping future technological developments.

With the rapid growth in AI computing power demand, the market conditions for next year are quite optimistic. Lin is particularly bullish on the future prospects of three major products: AI PC, AI servers, and AI automotive electronics, with a special emphasis on the significant growth potential of AI PCs.

Quanta is optimistic about the growth momentum in this sector, especially with Microsoft set to launch the latest Windows featuring AI functions next summer. Quanta envisions continued collaboration with GPT in the future for PCs.

TrendForce’s Insight

TrendForce reports the global shipment of notebooks is expected to reach 167 million units in 2023—a YoY decrease of 10.2%. However, with inventory pressures easing, the notebook market is anticipated to return to a balanced supply and demand cycle in 2024. Overall shipment volume is forecast to reach 172 million units, marking a YoY increase of 3.2%.

As for AI PC, TrendForce believes that due to the high costs of upgrading both software and hardware, early development will be focused on high-end business users and content creators. This targeted group has a strong demand for leveraging AI processing capabilities to improve productivity efficiency and can also benefit immediately from related applications, making them the first-generation primary users.

The emergence of AI PCs is not expected to necessarily stimulate additional PC purchase demand. Instead, most upgrades to AI PC devices will occur naturally as part of the business equipment replacement cycle projected for 2024.

Nevertheless, looking to the long term, the potential development of more diverse AI tools—along with a price reduction—may still lead to a higher adoption rate of consumer AI PCs.

Read more

• Key Development Period for AI PCs in 2024; Global Notebook Market Set to Rebound to Healthy Supply-Demand Cycle with an Estimated Growth Rate of 3.2%, Says TrendForce

(Photo credit: Pixabay)

In November 2023, Quanta, a Taiwanese electronics manufacturer, has announced a collaboration with the U.S. AR glasses technology provider Vuzix. Through the adoption of Vuzix’s waveguide technology and optical display components, Quanta is set to engage in mass production for smart glasses, with shipments expected to commence in 2024.

The contract manufacturer like Quanta has been strengthening its technical capabilities in the VR and AR domains in recent years, aiming to possess the capacity to provide comprehensive product solutions and seize opportunities in the flourishing virtual market.

TrendForce’s Insights:

1. Quanta Continues to Explore AR Glasses, Collaboration with Vuzix Aims for Expanded Applications

In recent years, Quanta has actively invested in the AR glasses sector, including collaborative efforts with STMicroelectronics in late 2020 to develop a reference design for AR glasses and a $20 million investment in the Israeli AR startup Lumus in 2021.

The ongoing partnership with Vuzix, planning for complete device shipments, underscores Quanta’s optimistic outlook on the application development and future business opportunities for AR glasses.

Given Quanta’s key product and service areas spanning mobile computing, home entertainment, IoT, and smart manufacturing, the current trend of the metaverse positions VR and AR devices as crucial gateways to enter and add value to these domains.

With Quanta transitioning from a device supplier to a platform service provider and implementing a comprehensive development strategy of hardware-software integration, the continued focus on AR glasses holds the potential to expand profit margins for Quanta.

Vuzix, in collaboration with Quanta, has secured a prominent position in the VR and AR device market through its wearable display technology. Notably, Vuzix has developed the world’s first Micro LED AR glasses and consistently received CES Innovation Awards from 2020 to the present year.

Their product highlights encompass AR technology for swim goggles, the establishment of a comprehensive smart glasses platform featuring microLED and waveguide technologies. The recently unveiled Ultralite S, focused on sports and fitness scenarios, seamlessly integrates with smartphones or smartwatches to display real-time activity data and information on the glasses, earning it the CES 2024 Innovation Award.

With Vuzix possessing critical optical technology and components across a broad product range, the collaboration aligns well with Quanta’s AR transformation, particularly enhancing Quanta’s QOCA telemedicine cloud platform in the medical field. The synergy between the two marks a harmonious and mutually beneficial partnership.

2. Contract Manufacturer Actively Strengthen VR and AR Tech Capabilities Through Collaboration and Investment to Seize Virtual Opportunities

In addition to Quanta, various contract manufacturers have been actively enhancing their technological capabilities in the VR and AR industry through collaborations, mergers, and investments. Notably, Foxconn has been investing in and collaborating with key players in the VR and AR device market since 2022, including XRSPACE, Varjo, and the early part of 2023 with Jorjin.

Looking at other contract manufacturers, GoerTek works with major clients like Meta, Sony, and PICO, Luxshare has Apple Vision Pro assembly orders, and Pegatron has handled products for Microsoft HoloLens and Oculus, while Quanta has been involved with Microsoft Mixed Reality Headset.

Therefore, for Foxconn and other companies aiming to enter this field, adopting more investment and collaboration strategies, or even directly acquiring key tech firms, will be the fastest way to rapidly strengthen their competitive position in the VR and AR market.

Looking at the overall supply chain of the VR and AR virtual device industry, the efforts of assembly plants to strengthen their technical capabilities go beyond providing assembly outsourcing. To a certain extent, this is also aimed at developing the ability to offer complete product solutions, catering to a broader customer base.

Given that these devices prioritize image precision and real-time capture, high-end products require more components and sensors. Moreover, the non-uniform design of head-mounted devices adds complexity to the assembly of VR and AR devices.

Additionally, not all companies have the resources and industry competitiveness, as in the case of Meta and Sony, to independently develop head-mounted devices from scratch. For many, obtaining a more comprehensive product solution and then making adjustments is a more practical approach. This necessitates contract manufacturers to have enhanced VR and AR technology and ODM capabilities. This way, amidst the flourishing opportunities in the virtual market, they can offer complete head-mounted device solutions.

Read more 

• [News] Apple’s Vision Pro Headset Set to Enter Mass Production, Chinese Supply Chain Expected to Contribute 60%