Untitled

2012

Prepared by

Ferhat Ünlükal

9/30/2012

BUSINESS AND TECHNOLOGY REPORT


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BUSINESS AND TECHNOLOGY REPORT SEPTEMBER 2012

Headlines

Consumer Electronics (CE)

• Samsung Electronics Co said it would inspect 250 Chinese companies.

• The battle surrounding OLED technology theft between tech giants Samsung Display and LG Display is entering another round.

• LG says an 84-inch TV that has four times the resolution of standard HDTVs is going to be in stores in October.

• LG has joined forces with the U.S. Environmental Protection Agency.

• LG Electronics will produce 10 million refrigerators and 13 million washing machines by the end of 2012.

• Whirlpool and LG agreed to settle patent-infringement cases over refrigerator icemakers.

• Sony will invest £397m and take an 11.5 percent stake in Olympus.

• Sony dropping its from 19 million units to around 15.5 million.

• Sony Corp. said it will launch a large-size LCD television.

• Sony recently announced that it will begin a phased launch of its latest Bravia LCD television in all global regions from the end of 2012.

• Sony is eyeing a 30 percent market share in the flat panel TV segment in India.

• Control4 announced that Sony has integrated Control4® automation technology.

• Sony will launch a new line of small, flat, external batteries

• Sony's Technology Centre has signed a deal to manufacture the low cost Raspberry Pi computer.

• Toshiba said its global television sales in the current financial year are likely come in 10-20 percent short of the company's target of 16 million units.

• Sharp announced that it will expand its manufacturing operations in the Philippines.

• Sharp is to cut 11,000 jobs worldwide. • NEC announced the premiere of the

Touch-Integrated V Series. • Amtran has reported an 86% on-year

increase in consolidated revenues for the month of August.

• Haier Group offered to buy the rest of New Zealand’s Fisher & Paykel Appliances Holdings Ltd. (FPA).

• Hisense will cooperate with Norway-based Opera Software.

• Foxconn’ chairman is demanding a management role at Sharp Corp.

• Foxconn will reportedly produce entry-level large-size LCD TVs to ride the wave of this market trend.

• Foxconn will spend US$494 million on five factories in Brazil.

• Foxconn robot replacement plan seems to be very seriousely behind schedule.

• Foxconn has registered its solar subsidiary in China.

• An android based set-top box that will allow any television to be controlled by hand gestures has been announced by Korean manufacturer Innodigital.

• Global LCD TV shipments are estimated to reach 215-220 million units in 2013.

• Samsung’ shipments rose 18 percent year over year, helping it secure 28.5 percent market share.

• Competition in the high-end flat screen TV sector is heating up.

• TV price wars are increasingly emerging in China.

• Toshiba, LG Electronics and Philips Electronics said they were banding together to develop a common system.


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• The research firm reported that total TV shipments worldwide hit 51.6 million.

• The proportion of overall LCD TV sales for TVs sized 50-inch and above is expected to increase from 5% in 2012 to as high as 15% in 2013.

• The 3D display market is set to grow from 50.8 million units and $13.2 billion in revenue in 2011 to 226 million units and $67 billion in revenue in 2019 worldwide.

• The global LCD backlight market is forecast to decline by 3.1% to be worth an estimated US$15.5 billion compared to US$16 Billion.

ICT

• Samsung Electronics said that global sales of its new Galaxy S III smartphone had topped 20 million.

• Galaxy S3 smartphone to reach 30 million sales in 2012.

• Samsung will announce a 5-in. Galaxy S4 at Mobile World Congress in Barcelona next February.

• Samsung has begun development on its own WebKit browser for mobile devices.

• Samsung Electronics, which has vaulted the value chain on the strength of its hardware, will go out and buy mobile content providers.

• Apple Inc.'s iPhone 5 will work globally on the next-generation LTE wireless network.

• Apple's iPhone 5, launched to great fanfare in the United States.

• The in-cell touch panel technology adopted by the Apple smartphone has generated mixed views from market observers.

• Apple is planning to enter the world of custom internet radio.

• Apple's iOS6 mobile operating system looks to be a boon for travelers and other consumers.

• Apple CEO Tim Cook released a letter on the company's Web site, apologizing for the poor mapping application.

• Apple Inc booked orders for over two million iPhone 5 models in the first 24 hours.

• Apple Inc has asked for a court order for a permanent U.S. sales ban on Samsung Electronics products alleged to have violated its patents along with additional damages of $707 million.

• LG Electronics will launch the Optimus G smartphone.

• Nokia will start selling its new smartphone.

• Nokia has knocked 10-15 percent off the prices.

• Nokia announced to cooperation with Mercedes, Volkswagen and BMW.

• HTC reportedly plans to take up the rights issues.

• HTC unveiled its first smartphones powered by Microsoft’s Windows.

• HTC reportedly plans to take up the rights issues to be released by AUO.

• Barnes & Noble Inc is launching a video streaming and download service.

• Barnes & Noble is rolling out two new versions of its Nook tablet.

• Amazon.com Inc is expected to release the Kindle e-book reader in Japan early October.

• Hitachi Ltd said it stopped production at two auto parts plants in China.

• HP and Acer have informed their partners in the upstream supply chain of improving the notebook shipment ratio of Chongqing plants to 60% in 2013.

• Chinese tablet PC makers are trying to diversify their product lines to compete with Apple Inc's iPad.

• IBM announced that Anheuser-Busch InBev (AB InBev) has expanded its relationship.

• IBM announced that RadioShack is working with IBM's cloud-based solutions.

• IBM has launched a new set of incentives and aids to help its service partners.

• Cisco won unconditional EU regulatory approval for its $5 billion takeover of NDS.


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• Cisco Systems, has bought Cork-based location analysis software company, ThinkSmart.

• Nokia Siemens Networks said it will begin talks to lay-off around 400 employees.

• Nokia Siemens Networks (NSN) is moving ahead with its restructuring faster than expected.

• Nokia Siemens said that the mobile network equipment maker may sell its business support systems unit.

• Huawei has committed to investing US$1 billion in procurement in the UK over the next five years.

• The Bosch division Security Systems and GreenPeak Technologies have announced their partnership.

• Eastman Kodak Co said it plans to stop selling inkjet printers from 2013.

• Ericsson bought Canadian telecommunications software provider ConceptWave Software Inc.

• The Blackstone Group LP (BX) has agreed to buy Vivint Inc – a security provider, which offers home automation and technology services – for a sum of about $2 billion.

• Foxconn's plant in Taiyuan in northern China has resumed production after a riot that involved 2,000 workers had forced the company to close the factory.

• Locatel and Hoist Technology have announced the creation of a business alliance to form Europe’s largest technology and service provider for the hospitality sector.

• Playcast Media announced four new technology partnerships with some of the largest companies in the set-top market: Cisco, Pace and AirTires.

• The worldwide mobile phone market declined 1.9%.

• Tablet market will increase from 119 million in 2012 to 494 million by 2016.

• Global spending on wireless infrastructure is projected to grow 8.3% to $45.5 billion this year.

• Global Telecom BI market to grow at a CAGR of 9.42 percent over the period 2011-2015.

• Acer, Asustek, Wistron have announced their August revenue performances with both vendors seeing on-month growth, while Wistron suffered decline.

Panel Industry

• LG Display will begin mass producing its large-size white OLED TV panels.

• LG Display has filed a lawsuit against Samsung Electronics.

• LG Display is now responsible for 70% of iPad panel shipments.

• Sharp President Takashi Okuda said the Osaka-based firm would book a net profit in the fiscal year.

• Sharp’ sales of display panels for tablet computers are less than the company expected.

• Sharp and LG Display will increase production of in-cell touch panels for use in iPhone 5 from an estimated total of 12-13 million units in the third quarter of 2012 to 40 million units in the fourth.

• Sharp is in talks to supply small and mid-sized liquid crystal display panels to Intel Corp.

• AUO has also reportedly received six times the amount of orders for LCD TV panels from Sony.

• AU Optronics (AUO) is expected to see its revenue hike in the fourth quarter.

• AUO is still reportedly facing issues with producing 3D 4Kx2K TV panels

• AU Optronics (AUO) has reportedly obtained small- and medium-sized panel orders from E Ink.

• AU Optronics said it would appeal against a US court decision to fine it $500 million.

• The Justice Department has asked a federal cout to fine AU Optronics $1 billion for its role in a price-fixing case focused on LCD panels.

• AUO will ship approximately 400,000-500,000 panels for Apple's reported 7.85-inch iPad.

• AUO hopes to increase its AMOLED material usage to 70-80%


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• CMI and AUO are continuing to be proactive in producing small- and medium-sized AMOLED panels.

• Chimei Innolux (CMI) is focusing on 4Kx2K technology.

• Chimei Innolux (CMI) has reached nearly full production capacity at all of its plants.

• CMI is also seeing increasing demand for panels used in various ultrabook models.

• Chimei Innolux (CMI) said the company has order visibility until the end of 2012

• Chimei Innolux (CMI) shipped 13.893 million large-sized panels in August.

• CMI is mostly producing are sized 39- and 50-inch.

• CMI has been dedicated in developing OGS (One Glass Solution) products.

• BOE and CSOT have been seeing monthly 32-inch TV panel shipments exceed one million units.

• Sumitomo Chemical has joined Holst Centre's shared research program on printed organic lighting and signage.

• Taiwan- and Korea-based panel makers are slowly shifting away from focusing on producing low-priced 32-inch sized LCD TV panels.

• TFT-LCD panel prices have been decreasing in recent times due to oversupply and global economic instability.

• LCD panel suppliers are still expecting 2012 shipments to grow 8% to 757 million and revenue to increase 13% to $85.3 billion.

• LCD TV panel shipments will be roughly six million units per month in China.

• Taiwan-based panel makers Chimei Innolux (CMI), AU Optronics (AUO), Chunghwa Picture Tubes (CPT) and HannStar will most likely continue to face losses in the second half of 2012.

• Tablet PC panel makers are targeting shipments of 72.8M units of 9.7” panels in 2012.

• OLED market has been forecast to increase at a CAGR of 32.6%.

• Taiwan-based TV panel makers have been reporting increased orders from China-based TV vendors.

• Taiwan-based panel makers are seeing decreasing orders for Apple products.

• Taiwan-based TFT panel providers and touch screen panel makers are expected to see better than expected financial results by the end of the third quarter of 2012.

• In the global touch panel market, handset applications will account for the highest proportion of shipments at 76.2% in 2012.

• Tablet display shipments are projected to rise worldwide by 56 percent in 2012 to 126.6 million units -- up from 82.1 million units in 2011.

Semiconductor Industry

• Intel is betting on wireless charging and plans to build the technology into its products.

• Intel has introduced multi gigabit wireless docking technology.

• Intel showed off hybrid tablets and ultrabook laptops with voice and gesture recognition technology.

• Intel and its hardware partners will launch a broad attack on the tablet market.

• Hitachi has developed a glass-based data storage medium.

• Rovi Corporation (ROVI) and Broadcom announced that Broadcom's latest IPTV platforms will support DivX Plus Streaming(TM).

• Broadcom Corporation announced the release of validated drivers for OpenTV 5.

• Broadcom announced the industry's first 5G WiFi DOSCIS 3.0 cable gateway platform.

• Broadcom introduced the BCM51030 devices with VersaLineTM Digital-Pre-Distortion technology.

• STMicroelectronics (ST) has established a strategic agreement with MicroOLED.

• STMicroelectronics will demonstrate a cable modem meeting the latest DOCSIS® 3.0.

• NXP Semiconductors N.V. (NASDAQ: NXPI) announced two high-performance switches supporting DisplayPort and HDMI architectures.


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• NXP has unveiled the company’s next-generation, high-performance switch supporting Thunderbolt technology.

• Atmel recently announced that leading telecommunication equipment maker Samsung has selected the former’s maXTouch.

• STMicroelectronics has launched a new pressure sensor.

• Micron has announced that it received U.S. regulatory approval to buy out Elpida Memory.

• Micron Technology Inc posted lower-than-expected quarterly results as weak PC sales continue to weigh on its chip business.

• TSMC has announced that it expects third quarter sales to be slightly higher than its earlier forecast.

• TSMC is supposedly planning to set its capital expenditure for 2013 at $10 billion, up from about $8.25 billion in 2012.

• MediaTek announced that Lenovo has selected its highly integrated Android mobile platform.

• MediaTek announced that it has been selected as part of the Wi-Fi CERTIFIED Miracast™ test bed.

• Entropic Communications, Inc. announced that its technology has been selected as the system-on-a-chip (SoC) solution.

• Entropic Communications, Inc. announced that by working with IP4.tv GmbH.

• ALi Corporation announced that it has joined forces with Panasonic Corporation’s Semiconductor.

• GreenPeak Technologies's GP710 is a dual-protocol ZigBee communications.

• Trimble Navigation (TRMB) recently announced that it has acquired privately-held Logicway.

• eMagin announced that its new SNU OLED deposition machine has achieved automated operation.

• IHS iSuppli showed that global chip sales in the second quarter of 2012 declined 3 percent to $77 billion.

• Asia is playing an ever more important role in upstream LED chip manufacturing.

• The wireless sensor network market, led by ZigBee, grew ten-fold from 2007 to 2010 and exceeded 45 million annual shipments in 2011.

• The total market for standards-based wireless connectivity chipsets is expected to exceed $10 billion in 2012.

• MEMS sensor market in mobile devices will be valued at $1.2 billion by the end of 2012 and reach $2.8 billion in 2017.

Automotive Electronics

• Toyota Motor Corporation and DENSO Corporation are jointly developing an on-board communications

Software Industry

• Google has bought startup VirusTotal. • Google Inc said it bought Instagram

rival Nik Software. • Microsoftacquired patents of RIM. • Windows 8 will help boost overall sales

of tablets by nearly 10 million this year. • Microsoft faces yet more heavy fines. • The Windows Store is now open to

developers in 120 geographic markets. • Microsoft has saved nearly $7 billion off

its U.S. tax bill. • Oracle reported that new software

sales rose 6 percent from a year earlier to $1.6 billion.

Service Industry

• Vodafone has signed a deal with Kuwait's Zain Group.

• Telecom Italia said it was not looking into the possible acquisition of Vivendi's GVT phone unit in Brazil.

• Akamai Technologies Inc. has acquired FactSoft Inc.

• The BBC has released its own media player.

• Vivendi's Universal Music Group won European and U.S. approval for its $1.9 billion purchase of EMI's recorded music business.


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• Poland's competition watchdog cleared France's Vivendi(PAR:VIV) to establish a joint venture.

• DirecTV (DTV) is one of several companies considering a bid for Vivendi SA's Brazilian telecom unit.

• Shazam is pursuing the television market.

• Agilent announced a memorandum of understanding has been signed with the China Academy of Telecommunication Research.

• Inteliquent announces the establishment of its Turkish subsidiary.

• General Atlantic, announced a $44 million stake in Turkish on-line food order platform, Yemeksepeti.

• Baidu Inc will invest more than 10 billion yuan ($1.6 billion) to set up its cloud computing centre.

• Global pay TV subscribers will reach 858.1 million at the end of 2012.

• Nine million subscribers are on LTE today out of 3.6 billion cellular users worldwide.

• The cloud services market is expected to grow over 3 times by 2015 to $177.0 billion

• Cloud organization Cloud Industry Forum announced it has established the Cloud Service Provider Code of Practice.

• The cloud-based games push could accelerate a consumer move away from consoles.

Retail and Payment Industry

• VeriFone Systems, Inc (PAY:Quote) reported an increase in profit for the third quarter, helped mainly by higher revenues.

• Oracle’s Retail Mobile Point-of-Service, was developed using the PAYware.

• VeriFone announced that Indiana-based retailer The Finish Line (FINL) has deployed its mobile checkout and multimedia-driven countertop payment solutions.

• Ingenico announced its latest iWL2 series mobile point-of-sale (POS) devices.

• Ingenico says that it has been selected as supplier of payment terminals for the launch of NFC based mobile payments in the Czech Republic.

• Ingenico (accelerates the deployment of its growth strategy on the mobile payment solution market.

• MasterCard said it had signed a deal with a Myanmar bank.

• Everything Everywhere, O2 and Vodafone, have won bids to offer a mobile wallet partnership.

• Isis is delaying the launch of its mobile payments service

• Facebook's partnership with Bango will offer a seamless mobile payment system.

• Fujitsu announced that it has worked together with the major Japanese drug store chain.

• Groupon Inc. launched a payment business and entered a crowded field.

• Oracle introduced Oracle Retail Mobile Point-of-Service.

• Telit announced that its M2M cellular modules used by Nayax.

• Telit Wireless Solutionsrecently announced the market introduction of the wireless M-Bus module for the European utility meter industry.

• Discover Bank, will pay about $200 million to cardholders who bought certain credit-protection products over the phone.

• Neste Oil, Finland's largest oil retailer, today announced that it has launched the FuelOmat Gold automated vehicle identification solution.

• Regal Payment Systems, LLC, announces a new partnership with ICG Software.

• RFID Market Tracker found that modernizing RFID applications will grow twice as fast with annual revenues derived from these jumping by $4.5B.

Energy Industry

• Hitachi Europe said it will co-ordinate on a new EUR4.3m pan-European research Project.


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• Toshiba Corp and Hitachi plan to invest 120 billion yen over a decade to set up offshore wind türbine.

• Toshiba Corp. has signed MOU with France's Alstom Grid.

• Sharp is planning to sell its U.S. solar cell unit.

• IBM India said that it is estimated that USD 1.2 trillion capital investment is needed to meet projected demand in (Indian) cities to transform the cities going forward.

• The RAV4 EV combines a Tesla designed and produced battery and electric powertrain with Toyota's most popular SUV model.

• Toyota Motor Corp. is boosting its green vehicle lineup, with plans for 21 new hybrids in the next three year.

• Hyundai aims to leapfrog that technology and roll out what it calls the world's first production fuel-cell electric vehicles

• Robert Bosch GmbH and Samsung SDI announced the companies would disband their 50/50 lithium-ion battery joint venture SB LiMotive.

• Trilliant announced the full scale roll-out of a smart grid deployment with the Victoria Electric Cooperative in Victoria, Texas.

• Global meter shipments in the second quarter of 2012 (2Q12) grew 33.6% over the previous quarter.

• Britain will be nearly GBP14 billion better off thanks to the introduction of smart meters to British homes.

• A joint smart grid test between Japan and the United States has started in Los Alamos.

• Eleven Chinese ministries and government agencies are test-driving China-made electric cars.

Healthcare Industry

• General Electric plans to make acquisitions in Germany to raise its market share in CAT scan and MRI technology.

Consumer Electronics (CE)

Samsung

Labor Laws

• Samsung Electronics Co said it would inspect 250 Chinese companies which make products for the South Korean firm to ensure no labor laws are broken after a U.S.-based group accused one of its suppliers of using child labor.

Samsung’s stock performance

OLED technology theft

• The battle surrounding OLED technology theft between tech giants Samsung Display and LG Display is entering another round as Samsung recently filed an injunction against its rival in Seoul.

LG

84 inch 4K*2K

• LG says an 84-inch TV that has four times the resolution of standard HDTVs is going to be in stores in October for $20,000.


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LG’s stock performance

Electronic recycling

• Building on its leadership in responsible electronics recycling, LG Electronics USA has joined forces with the U.S. Environmental Protection Agency (EPA) as a charter participant in the EPA's Sustainable Materials Management (SMM) Electronics Challenge launched.

Household Appliances

• LG Electronics will produce 10 million refrigerators and 13 million washing machines by the end of 2012, indicating that the company is seeing steady growth despite global economic instability, according to the company.

Agreed to settle patent infringment

• Whirlpool Corp., the world's largest appliance maker, and LG Electronics Inc. agreed to settle patent-infringement cases over refrigerator icemakers for an undisclosed amount.

Sony

Acquisition of Olympus’ stake

• Japanese electronics giant Sony said it would buy 11.5 percent of scandalized camera and medical equipment firm Olympus.

• Sony will invest 50bn Yen (£397m) and take an 11.5 percent stake in Olympus.

• Sony wants to nurture new businesses, including medical equipment, to increase revenue as it draws back from loss-making televisions.

• Meanwhile Olympus, seeking to retain a high degree of independence, may favour a capital injection from Sony rather than offers of closer business ties from rivals such as medical device maker Terumo Corp and camera maker Fujifilm Holdings Corp.

Sony’s stock performance

LCD TV shipments

• Most Japan-based TV vendors have been reducing their 2012 shipment goals, with Sony dropping its from 19 million units to around 15.5 million.

Large Sized LCD TV

• Sony Corp. said it will launch a large-size LCD television with enhanced image quality on Nov. 23, aiming to boost sales of value-added products to rebuild its loss-making TV business.

84 inch 4K*2K

• Sony recently announced that it will begin a phased launch of its latest Bravia LCD television in all global regions from the end of 2012. The new Bravia boasts an 84-inch 4Kx2K LCD panel and incorporates Sony's 4K X-Reality Pro technology.


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Increasing market share in India

• Japanese electronics major Sony is eyeing a 30 percent market share in the flat panel TV segment in India by the end of this financial year, a top company executive said Friday.

• Sony India said it will invest some INR 5.5 billion (US$103 million) in business expansion plans this year, with an emphasis on scaling up its mobile business.

Cooperation with Control4 for Smarthome

• Control4, a leading innovator in residential and light commercial automation systems, announced that Sony has integrated Control4® automation technology into its new ES receivers (introduced at CEDIA Expo) – delivering best-in-class AV performance and home automation within one easy-to-install and easy-to-use product. The ES receivers with Control4 automation are available for order now through authorized Control4 and Sony ES dealers.

Small Computer for game

• Sony's Technology Centre in Wales has signed a deal to manufacture the low cost Raspberry Pi computer in the UK for the first time. The product, which has been developed by the non-profit Raspberry Pi Foundation, is a $25 credit-card sized computer based on a Broadcom chip that aims to stimulate young people’s interest in computer programming.

External Batteries

• Sony will launch a new line of small, flat, external batteries to provide extra juice for tablets and smartphones, the first such products to use its thin "laminate" technology, it said.

Toshiba

LCD TV shipment

• Toshiba Corp said its global television sales in the current financial year are likely come in 10-20 percent short of the company's target of 16 million units amid tough market conditions.

Toshiba’s stock performance

Sharp

Manufacturing in Philippines

• Japanese electronics firm Sharp announced that it will expand its manufacturing operations in the Philippines to include assembly of LCD TVs.

Sharp’s stock performance

Cutting jobs and selling assets

• Japanese consumer electronics giant Sharp is to cut 11,000 jobs worldwide and sell US$2.7 billion (RM8.26 billion) worth of assets and factories in a bid to


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turn its finances around, a report said yesterday.

NEC

Touchscreen Intergrated series

• NEC Display Solutions of America, a leading provider of commercial LCD display and projector solutions, announced the premiere of the Touch-Integrated V Series with the 46-inch V462-TM and 65-inch V651-TM. The commercial-grade panel and components promote extended use and deliver superior touchscreen capabilities in education, corporate, retail and restaurant environments.

NEC’s stock performance

Amtran

Increasing shipments

• Amtran has reported an 86% on-year increase in consolidated revenues for the month of August due to the flat screen TV market heating up in North America. Vizio, one of the main TV brands that use Amtran products, has seen increasing demand for its products in North America, where it holds second place behind Samsung Electronics in terms of TV sales. Amtran's TV shipments bumped up to 500,000 in August, a 32% on-month increase, which drove consolidated revenues up 86% on year to NT$5.6 billion (US$188 million).

Amtran’s stock performance

Haier

Acquisition of Fisher Paykel

• Haier Group offered to buy the rest of New Zealand’s Fisher & Paykel Appliances Holdings Ltd. (FPA) for NZ$695 million ($570 million) as China’s biggest appliance maker boosts international distribution and manufacturing capability.

• Haier Group’s full takeover offer for Fisher & Paykel Appliances Holdings Ltd (Fisher & Paykel Appliances) is now open for acceptance, with offer documents being mailed to shareholders.

Haier’s stock performance

Hisense

Coperation with Opera

• China-based vendor Hisense will cooperate with Norway-based Opera Software ASA to develop Internet-connected LCD TVs, with the latter


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providing the Linux-based Opera Devices SDK and HTML5 engine which Hisense will use to develop software solutions for its 55XT770, 50K360 and K300 TV series, according to Hisense.

Hisense’s stock performance

Foxconn

Management role at Sharp

• Hon Hai Precision Industry Co Ltd's <2317.TW> chairman is demanding a management role at Sharp Corp <6753.T> as part of an equity tie-up, stepping up the pressure on the Japanese TV maker to give him greater influence in the company in return for badly needed cash.

• The market watchers pointed out that Sharp only wants Foxconn to invest without getting involved in its operations; however, Foxconn on the other hand, is aiming to gain more control over Sharp's operations. The conflict has seriously stalled cooperation talks.

Foxconn’s stock performance

Entry level large size LCD TV’s

• With wired/wireless network infrastructure maturing, large-size LCD screens will serve not only as a TV, but also the center for convergence of all home video entertainment or digital information. Foxconn Electronics (Hon Hai Precision Industry) will reportedly produce entry-level large-size LCD TVs to ride the wave of this market trend.

• Foxconn reportedly has already started trial production of such large-size LCD TVs at its plants in Longhua and Yantai, but as marketing plans have yet to be finalized, the official launch of these large-size sets remains undecided.

• Industry observers said Foxconn has come under pressure from peers who are worried that the low-cost large-size TVs will further dent profits for the LCD industry.

Production in Brazil

• Foxconn will spend US$494 million on five factories in a Brazilian industry park, which are expected to create 10,000 new jobs and start producing the first batch of products by 2014.

• The new facilities are scheduled to commence production work in 2014 and expected to reach full capacity by 2016. It will also create 10,000 jobs, said Foxconn, which already employed 6,000 workers in Brazil.

Factory Automation

• Foxconn has been aiming to replace some of its workers with one million robots by 2014. But that plan seems to be very seriously behind schedule, with a source telling a China Radio finance reporter that only five percent of the planned robot workforce of 300,000 for 2012 has even been built. That amounts to just 15,000 robot manufacturing units being ready for action by the end of this year, casting serious doubt on the ability of Foxconn - which does final assembly for the likes of Apple, Amazon, and HP - to hit


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its target of one million automatons being put into action by 2014.

Solar Business

• Foxconn Electronics (Hon Hai Precision Industry) has registered its solar subsidiary in China, according to news reports from China. The solar subsidiary will mainly produce solar cells and modules.

Innodigital

Android based STB with hand gestures control

• Ntobebox allows users to perform any function on the remote control with gestures. An android based set-top box that will allow any television to be controlled by hand gestures has been announced by Korean manufacturer Innodigital, working in partnership with Israeli gesture recognition firm Eyesight

CE Market

TV Shipments

• Global LCD TV shipments are estimated to reach 215-220 million units in 2013, growing by 5-10% from an estimated 200-205 million units shipped in 2012, according to Taiwan-based TV panel makers based on potential orders for 2013.

• Samsung Electronics and LG Electronics will continue to be the two largest LCD TV vendors in 2013, the sources indicated.

• Emerging markets including China are expected to account for 63-65% of global shipments of LCD TVs in 2013, with Samsung and LG together to occupy about 40% of these markets in total, the sources pointed out.

Major LCD TV vendors: Estimated shipments in 2012, 2013 (m units)

Vendor 2012 shipments

2013 shipments

Samsung 40 45

LG 26-27 30-32

Sony 16-17 17

Sharp 10 8-9

TCL (China-based) 12 > 9

Hisense (China-based) 10 > 9

Source: Taiwan-based TV panel makers, compiled by Digitimes, September 2012

• The television market struggled through a second consecutive down quarter this year, new data from NPD DisplaySearch has revealed. The research firm reported that total TV shipments worldwide hit 51.6 million, down eight percent compared to the same period last year. LCDs once again dominated the space with 85.5 percent market share and 44.1 million shipments. Cathode ray tube (CRT) televisions came in second place with 8.4 percent share and 4.3 million shipments. Plasmas could only muster the third-place spot with 6.1 percent share and 3.2 million shipments.

Market Share

• Samsung’s shipments rose 18 percent year over year, helping it secure 28.5 percent market share. The second-place vendor, LG, nabbed 14.6 percent of the market as shipments remained static. Sony and Panasonic took the third and fourth spots, respectively, but both companies saw their shipments drop by a third compared to last year.

Proportion of LCD TV sales

• The proportion of overall LCD TV sales for TVs sized 50-inch and above is expected to increase from 5% in 2012 to as high as 15% in 2013 due to decreasing prices, according to figures from Digitimes Research.


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• In 2012, 30- to 39-inch LCD TV models will still have the highest proportion, accounting for 49% of total shipments, while 40- to 49-inch models will have a percentage at 35%, and models sized above 60-inch only around 1%.

4K*2K

• Competition in the high-end flat screen TV sector is heating up even more as Japan-based TV makers have begun showcasing their large-sized 4Kx2K TV models to compete with OLED TVs made from Korea-based TV makers Samsung Electronics and LG Electronics.

• Recently at the IFA consumer electronics show in Berlin, Japan-based Sony and Toshiba were promoting their 84-inch 4Kx2K TVs. Sony displayed its model, the XBR-84X900, which is an LED edge-lit LCD TV that features passive 3D technology and comes with a 10-driver stereo speaker system. The company claims the model has superior image quality while market observers said the high definition quality will be a competitive alternative to OLED TVs. However, Sony has yet to reveal a price and release date for the TV, but market observers estimate it will be priced above US$20,000 and will come out at the end of the year.

3D Display

• The 3D display market is set to grow from 50.8 million units and $13.2 billion in revenue in 2011 to 226 million units and $67 billion in revenue in 2019 worldwide, according to the NPD DisplaySearch 3D Display Technology and Market Forecast Report.

• 3D TVs contribute heavily to this projection and create the largest revenue stream with anticipated growth from 25 million units in 2011 to approximately 180 million units in 2019.

TV Price Wars in China

• TV price wars are increasingly emerging in China as local-based online retailers are reportedly trying to outdo one another with TV pricing, according to industry sources. Recently, the China government has issued energy-saving subsidies that include funding for LCD TVs. The subsidies, coupled with a recent increase in promotions by local TV online retailers, have prompted consumers to begin purchasing new TVs, especially in third- and fourth-tier cities, added the sources.

Worries of TV manufacturers

• The rise of Apple and Google in the smartphone market has pushed Nokia and Research In Motion to the brink of irrelevance. Now, television makers are scrambling to make sure the same does not happen to them.

• At the IFA consumer electronics fair in Berlin, Toshiba, LG Electronics and Philips Electronics said they were banding together to develop a common system that would let people listen to music, watch videos and play games via the internet on television sets.

• TV makers are wagering that mobile phone users hooked on consuming content will want the same access — and on bigger screens — when they return home. For manufacturers to hold back Apple and Google, which are both trying to take a slice of the TV market, they have to develop a joint operating system because consumers will not accept more than a few competing platforms, said Klaus Böhm, the head


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of the media practice at Deloitte in Düsseldorf.

LCD backlight market

• The LCD backlight market experienced a fall in the price of LED chips and with the combined lower than expected demand for LCD televisions, globally, the LCD backlight market reported lower market value sales in 2012. In 2012, the global LCD backlight market is forecast to decline by 3.1% to be worth an estimated US$15.5 billion compared to US$16 Billion. The increased demand for LCD televisions is reaching its peak as the penetration of the LCD televisions reaches close to 94% of the total television market. The strongest growth is seen with 3D televisions with the number of units shipped in 2014 forecast to total 92 million compared to only 18 million in 2011. In contrast the total number of global LCD televisions being shipped in 2012 is estimated to total 216 million units which represents an annual growth rate of just 2.85%.

ICT Industry

Samsung

SmartPhone

• Samsung Electronics said that global sales of its new Galaxy S III smartphone had topped 20 million since its launch in late May, amid legal battles with Apple over alleged patent infringements.

Galaxy S3

• Samsung Mobile boss JK Shin wants the company's flagship Galaxy S3 smartphone to reach 30 million sales in 2012 as it prepares to go head-to-head with the iPhone 5.

Galaxy S4 Smartphone

• Samsung will announce a 5-in. Galaxy S4 at Mobile World Congress in Barcelona next February, according to company officials and executives at parts suppliers quoted in The Korea Times.

Mobile Browser development

• According to a report from the Electronic Times in Korea, Samsung (005930) has begun development on its own WebKit browser for mobile devices. The South Korean manufacturer was previously seeking WebKit developers to work in its research and development facility located in Silicon Valley. A Samsung mobile browser will allow the company to further compete with Apple (AAPL) and continue to differentiate its Android devices from the competition. The browser would also directly compete with Google (GOOG), however, whose mobile Chrome browser is available on both Android and iOS. WebKit is an open-source browser engine that powers some of the world’s most popular Web browsers.


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Buying Mobile content provider

• Samsung Electronics, which has vaulted

the value chain on the strength of its hardware, will go out and buy mobile content providers, a senior executive told Reuters, to compete with Apple, Google and Amazon.com in a global digital music market worth nearly US$9 billion.

• The South Korean electronics giant has muscled its way to global leadership in TVs, smartphones, chips and display screens - packing internally sourced state-of-the-art components into consumer gadgets - but software remains a weak link.

Apple

iPhone 5

• Apple Inc.'s AAPL +0.62% iPhone 5 will work globally on the next-generation LTE wireless network, The Wall Street Journal reported late Friday in its online edition, citing sources familiar with the matter.

• Apple's iPhone 5, launched to great fanfare in the United States on Wednesday, will not work on superfast mobile broadband networks in much of Europe, potentially confusing consumers and setting back the development of 4G services in the region.

• Analysts have forecast sales of 10 million to 12 million of the new iPhones in this month alone.

• Market analysts estimate that iPhone 5 sales will reach 40 million units in the fourth quarter of 2012.

• Apple Inc booked orders for over two million iPhone 5 models in the first 24 hours, reflecting a higher-than-expected demand for the consumer device giant's new smartphone and setting it up for a strong holiday quarter.

• Apple (AAPL) announced that iPhone 5 sales topped 5 million in their first

weekend, better than the iPhone 4S, but below some estimates.

• Apple is facing shortages of the Iphone 5 due to its decision to specify a thinner display. Barclays claims that Apple's decision to go for a thinner Iphone 5 display has left its two display manufacturers, LG and Japan Display, struggling to meet demand. Bloomberg reports that the two display firms have been facing manufacturing difficulties and that led to a shortfall in Iphone 5 devices available at launch.

Apple’s stock performance

iPad Mini

• We anticipate overall 7.85 iPad mini production forecast is likely to reach -30M units in 2012. Meanwhile, TPK and CMI are expected to be the major lamination makers with -17M and -13M units of production forecast respectively by the end of 2012. In our view, Japanese touch panel suppliers Nitto Denko and Nissha Printing are likely to benefit from this huge demand forecast upside. On the other hand, panel mass production schedule remains to be fixed in July'12 but total production volumes are projected to adjust up to -8-10M units in 3Q12. In that case, AUO may need to improve their yield rate to above 60% to ensure sufficient 7.85 panel supply in 3Q12.


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In-Cell Touch Panel Technology

• Following the launch of the iPhone 5, the in-cell touch panel technology adopted by the Apple smartphone has generated mixed views from market observers. Some observers say inc-cell touch panels still have a low production yield rate and may not be widely adopted by other vendors in the next 2-3 years, but others believe the technology has set a new standard for smarthones.

Internet Radio

• Apple is planning to enter the world of custom internet radio, according to the Wall Street Journal.

New Value added service with IOS6

• Apple's iOS6 mobile operating system looks to be a boon for travelers and other consumers through a feature that stores boarding passes and retail coupons, and airlines and retailers are already gearing up to be involved. The preparation comes just days ahead of Apple's big product launch. Apple has scheduled an event September 12 at which it is expected to take the wraps off a new iPhone sporting iOS6.

Apoligizing for mapping application

• Apple CEO Tim Cook released a letter on the company's Web site, apologizing for the poor mapping application the company released as part of iOS 6, its latest mobile operating system.

Additional damages of Samsung

• Apple Inc has asked for a court order for a permanent U.S. sales ban on Samsung Electronics products alleged to have violated its patents along with additional damages of $707 million on top of the billion-dollar verdict won by the iPhone maker last month.

LG

Optimus G Smartphone

• LG Electronics will launch the Optimus G smartphone next week in South Korea, pinning high hopes on the new Android device to help revive its loss-making mobile business.

• LG is bringing its Optimus 3.0 interface and design sense to Boost Mobile next month. Boost Mobile announced today that it will soon offer the LG Venice, an Android smartphone that is only 7.62mm (0.3in) thick and 125g(4.41oz) in weight. The LG Venice has a 4.3-inch touchscreen with scratch-resistant Gorilla Glass. The body of the phone has a platinum finish on the rear and sides, and a black front with physical home, back, and menu buttons.

Nokia

New Smart Phone

• Nokia will start selling its new smartphone, potentially its last chance to break into the most profitable part of the mobile phone market and secure its future, in November, sources at European telecoms operators said.

Nokia’s stock performance

Discount on Smartphones

• Struggling phone maker Nokia has knocked 10-15 percent off the prices of two of its top of the range smartphones, hoping to boost sales before newer models arrive in markets in November.


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Cooperation with Mercedes

• Nokia announced that its Location & Commerce business is supplying global NAVTEQ® Maps and content to Mercedes to enable navigation systems in the full A-Class range. A-Class drivers will be able to experience a variety of additional new features including visual 3D imagery, traffic data, driver alerts and speed limits.

Cooperation with Volkswagen

• Nokia announced that its Location & Commerce business is supplying NAVTEQ® Maps and data to the Volkswagen Group for its new Discover Media and Discover Pro infotainment systems.

Cooperation with BMW

• Nokia announced that its Location & Commerce business is supplying global NAVTEQ(R) Maps to power the next generation BMW navigation system.

HTC

AMOLED Smartphone panels

• HTC reportedly plans to take up the rights issues to be released by AU Optronics (AUO) as a means to secure sufficient supply of AMOLED panels for smartphone production, according to a Chinese-language Economic Daily News (EDN) report.

HTC’s stock performance

Smartphone with Windows

• Taiwan’s HTC unveiled its first smartphones powered by Microsoft’s Windows in a boost for the US software giant’s efforts to break into a market dominated by Apple and Google.

Barnes&Nobles

Video Streaming service

• Barnes & Noble Inc is launching a video streaming and download service this autumn for its Nook e-books and device business in the latest volley in its battle to keep up with Amazon.com Inc.

• Barnes & Noble said it would introduce a new video store for its Nook products this fall, the latest expansion of the bookseller's digital content. Barnes & Noble currently has about 25 percent of the e-book market. In August, the company reported a loss of $41 million, or 78 cents a share, in the quarter ending July 28. Nook sales were flat over the previous year, at $192 million.

Barnes&Nobles’s stock performance

Nook Tablet

• Barnes & Noble is rolling out two new versions of its Nook tablet with sleek new hardware and a sharper high-definition screen. The bookseller's move heightens the already intense tablet wars heading into the holiday season.


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Amazon

Kindle e-book reader

• Amazon.com Inc is expected to release the Kindle e-book reader in Japan early October, the Nikkei reported.

Amazon’s stock performance

Hitachi

Stopped production in China

• Hitachi Ltd said it stopped production at two auto parts plants in China and partially halted output at a third in the country amid protests that have targeted Japanese businesses.

• Hitachi will decide whether to reopen the plants, a company spokesman said.

Hitachi’s stock performance

HP

Outsourcing

• According to Taiwan media reports, Hewlett-Packard Company (HP; NYSE: HPQ) and Acer Incorporated have

informed their partners in the upstream supply chain of improving the notebook shipment ratio of Chongqing plants to 60% in 2013.

• The move aims to reduce management cost and mould development cost. HP has outsourced its notebook orders to Quanta Computer Inc., Inventec Corporation and Foxconn in Chongqing, and hopes to improve the notebook shipment ratio of Chongqing plants from 40% to 60%. While Acer mainly outsourced its notebook orders to Quanta Computer Inc., Wistron Corporation and Pegatron Corporation, and wishes to improve the notebook shipment ratio of Chongqing plants from 50% to 65%.

• Currently, only the Chongqing plant of Quanta Computer has realized profit. The Chongqing plants of Compal Electronics, Inc. and Inventec Corporation are expected to make profit in the second half of this year. Besides, the Chongqing plant of Wistron Corporation has just begun production.

HP’s stock performance

Lenovo

Tablet PC

• Chinese tablet PC makers are trying to diversify their product lines to compete with Apple Inc's iPad, finding business opportunities in the Chinese market, said industry experts.

• According to domestic IT research firm Analysys International, in the first half of 2012 Chinese companies' market


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share of the tablet PC market was increasing. Even though Apple still dominates the market with a 69.07 percent share, Lenovo held the second slot with about 10 percent compared with close to nothing a year ago.

Lenovo’s stock performance

IBM

Cloud Based e-sourcing

• IBM (NYSE: IBM) announced that Anheuser-Busch InBev (AB InBev) has expanded its relationship to make use of the company's global supply management capabilities in cloud-based e-sourcing solutions.

IBM’s stock performance

Cooperation with RadioShock for cloud

• IBM (NYSE: IBM) announced that RadioShack, a leading national retailer of innovative mobile and technology products, services and accessories, is working with IBM's cloud-based solutions that help chief marketing officers (CMO) and their teams improve

price image and pricing operations over the entire pricing lifecycle.

Cloud services incentives

• IBM has launched a new set of incentives and aids to help its service partners make better use of the company's cloud services and products.

• IBM's MSP (managed service provider) partners can now get financing, marketing assistance and technical expertise when pursuing clients, according to the company.

Cisco

Acquisition of NDS

• San Jose-based network equipment maker Cisco (CSCO) won unconditional EU regulatory approval for its $5 billion takeover of TV software developer NDS, its largest ever, which will reinforce its presence in the video communications market.

Cisco’s stock performance

Acquisition of ThinkSmart

• Global tech giant, Cisco Systems, has bought Cork-based location analysis software company, ThinkSmart for an undisclosed sum. "ThinkSmart Technologies, based in Cork, Ireland, is a software company that delivers location data analysis using Wi-Fi technology," Cisco's Hilton Romanski said.


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Nokia -Siemens

Cost Cutting

• Nokia Siemens Networks said it will begin talks to lay-off around 400 employees in the coming week, as the firm continues to cut costs across its global operations.

Restructuring

• Struggling mobile phone equipment maker Nokia Siemens Networks (NSN) is moving ahead with its restructuring faster than expected, its chief executive said.

Selling off BBS Unit

• Nokia Siemens CEO Rajeev Suri said that the mobile network equipment maker may sell its business support systems unit. Suri revealed today that the company is in talks to sell off its BBS unit in an effort to improve profitability. Nokia Siemens has faced stiff competition on pricing from Huawei Technologies, ZTE Corp, and Ericsson, leading the company to focus its efforts on more profitable sectors.

Huawei

Investment in UK

• Huawei, a global information and communications technology (ICT) solutions provider, has committed to investing US$1 billion (GBP650 million) and to spending another US$1 billion in procurement in the UK over the next five years.

Huawei’s stock performance

Bosch

Smart Home

• The Bosch division Security Systems, a leading global supplier of security, safety and communication products, solutions and services and GreenPeak Technologies, a leading Smart Home RF communications semiconductor company, have announced their partnership. They join forces to serve operators with a complete end-to-end solution allowing them to complement their business offering with services like Home Security and Home Care.

Bosch’s stock performance

Kodak

Stop selling inkjek printers

• Eastman Kodak Co said it plans to stop selling inkjet printers from 2013 as it winds down most of its consumer businesses and focuses on commercial printing.


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Kodak’s stock performance

Ericsson

Acquisition of ConceptWave

• Ericsson, the world's leading mobile telecoms equipment maker, bought Canadian telecommunications software provider ConceptWave Software Inc. Toronto-based ConceptWave will become a fully owned unit of Ericsson and its 170 employees will be a part of Ericsson.

Ericsson’s stock performance

Blackstone

Acquisiton of Vivint for home automation

• The Blackstone Group LP (BX) has agreed to buy Vivint Inc – a security provider, which offers home automation and technology services – for a sum of about $2 billion. The deal is anticipated to conclude by the end of the current year.

Blackstone’s stock performance

Foxconn

Disrupted production

• A brawl at a Foxconn factory that disrupted production at Apple's main China supplier for 24 hours highlights regimented dormitory life and thuggish security as major sources of labor tension in China.

• Foxconn Technology Group's plant in Taiyuan in northern China has resumed production on Tuesday morning after a riot that involved 2,000 workers had forced the company to close the factory.

• Security teams wearing riot helmets and wielding plastic shields marched around a Foxconn factory in northern China in a sign that tensions remain high after a fight between 2000 workers halted production.

Locatel

Cooperation with Hoist

• Locatel and Hoist Technology, leaders in hotel systems, have announced the creation of a business alliance to form Europe’s largest technology and service provider for the hospitality sector. The range of solutions brings hotel operators greater efficiency with reduced operational costs, while increasing guest satisfaction and driving average guest spend through


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unrivalled services. All this will clearly enhance the overall profitability of hotel operations.

• The business alliance means that hotels across Europe can benefit from Locatel’s IPTV, WiFi, entertainment and information systems, on fixed or mobile screens, for their guests, as well as Hoist Technology’s property management system HotSoft 8 and mobile back office system Serviator. For European hotel operators, this comprehensive offering brings the widest range of system solutions available on the market. Combined, the services and solutions offered by Locatel and Hoist Technology already cover a park of over 600 000 hotel rooms, with an approximate 10% growth per year.

Playcast

Cooperation with STB manufacturers for game

• Playcast Media, one of the world's leading active cloud gaming service providers, announced four new technology partnerships with some of the largest companies in the set-top market: Cisco, Pace and AirTires which represent a total new install based of over 100 million households worldwide on top of the existing partnerships with Samsung and Sagem.

ICT Market

Mobile Phone Market

• The worldwide mobile phone market declined 1.9% year-on-year in the second quarter of 2012 while Samsung (SSNLF) maintained its lead over Nokia (NOK) and Apple (AAPL) as the world’s top mobile phone vendor. According to IDC’s European Quarterly Mobile Phone Tracker, vendors shipped 42.1 million units during the quarter, a drop of 1.9% year-on-year.

Tablet PC

• "Consumers are increasingly using tablets as a companion device to the PC and mobile phone to access media and information. We forecast that the tablet market will increase from 119 million in 2012 to 494 million by 2016(*)," said Mr. Mark Hung, Research Director at Gartner. "A company that has capabilities and technologies across different multi-screen platforms, from smartphones to DTV, should be well positioned to benefit from participating in the growing tablet market."

Notebook Manufacturers

• Notebook brand vendors Acer and Asustek Computer, and notebook maker Wistron have announced their August revenue performances with both vendors seeing on-month growth, while Wistron suffered decline

Taiwan-based notebook players' revenue performance, August (NT$b)

Company August revenues M/M Y/Y YTD Y/Y

Acer 26.71 (non-consolidated) 17.87% (15.53%) 242.98 (6.74%)

Asustek 32.01 (non-consolidated) 5.95% (3.79%) 235.68 17.42%

Quanta 83.61 (consolidated) (6.04%) (10.16%) 628.35 (9.83%)

Compal 51.76 (consolidated) (7.71%) (10.24%) 433.95 (6.3%)

Wistron 46.06 (non-consolidated) (5.68%) (10.97%) 430.7 7.73%

Inventec 21.23 (non-consolidated) (13.69%) (15.04%) 206.7 (5.2%)

Pegatron 58.75 (consolidated) (7.8%) 26% 453.5 60%

Source: Companies, compiled by Digitimes, September 2012

4G Wireless Structure

• Global spending on wireless infrastructure is projected to grow 8.3% to $45.5 billion this year, driven - unsurprisingly - by operators' LTE upgrades. IHS iSuppli forecasts that the rate of growth will outpace the 7.7% increase in spending from 2011. But by next year, 4G spending is expected to hit $25.09 billion, overtaking 3.5G spending, which will decline to $20.9 billion.


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Telecom Business Ingellient Market

• TechNavio's analysts forecast the Global Telecom BI market to grow at a CAGR of 9.42 percent over the period 2011-2015. One of the key factors contributing to this market growth is increasing need for competitive responsiveness in the Global Telecom market. The Global Telecom BI market has also been witnessing increasing demand for customized BI solutions. However, high cost of implementation of BI solutions could pose a challenge to the growth of this market.

Flat Panel Industry

LG Display

OLED TV

• LG Display will begin mass producing its large-size white OLED TV panels in 2013, according to a report from Japan. The company has set up a pilot OLED line at one of its LCD panel fabs in Korea, with plans to turn the fab into the company's major OLED production base by 2015.

LG Display’s stock performance

Lawsuit against Samsung

• South Korea's LG Display, the world's number two maker of liquid crystal displays (LCDs), has filed a lawsuit against Samsung Electronics, for allegedly violating its patents on organic light-emitting diode (OLED) panel technologies.

iPad Panel shipments

• LG Display is now responsible for 70% of iPad panel shipments while Samsung Electronics, Sharp and Chimei Innolux (CMI) have all been seeing decreasing shipments, according to industry sources.


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Sharp

Financial

• Sharp President Takashi Okuda said the Osaka-based firm would book a net profit in the fiscal year starting in April 2013, a marked reversal of the whopping 250 billion yen ($3.2 billion) loss it expects this year.

• Mizuho Financial Group and Mitsubishi UFJ Financial Group, the two main lenders to Sharp Corp, have approved a 210 billion yen bailout of Japan's troubled TV maker, sources said on Thursday, clearing a major obstacle to firm's survival.

Tablet PC panels expectation

• Sharp Corp. (6753)’s sales of display panels for tablet computers are less than the company expected, according to a senior executive at the Japanese company trying to negotiate a tie-up with Foxconn Technology Group.

Increasing in cell touch panels

• As Japan-based Japan Display and Sharp and South Korea-based LG Display will increase production of in-cell touch panels for use in iPhone 5 from an estimated total of 12-13 million units in the third quarter of 2012 to 40 million units in the fourth, and because their in-house laminating capacity is not enough to meet such an increased volume, Taiwan-based TPK Holding and China-based General Interface Solution, a member of the Foxconn Group, are expected to receive orders for laminating in-cell touch panels from the three companies beginning the fourth quarter, according to Taiwan-based supply chain makers.

Supplying panels to Intel

• Japan's Sharp Corp <6753.T> is in talks to supply small and mid-sized liquid crystal display panels to U.S.

chipmaker Intel Corp (NSQ:INTC), sources familiar with the matter said.

AUO

Panel orders from Sony

• AUO has also reportedly received six times the amount of orders for LCD TV panels from Sony. AUO received a monthly amount of 100,000 LCD TV panel orders from Sony in the first half of the year, but that number has jumped to 600,000 due to AUO being proactive in obtaining TV panel orders for new Sony TV models, said the sources.

AUO’s stock performance

Smal Sized iPad Panels

• AU Optronics (AUO) will ship approximately 400,000-500,000 panels for Apple's reported 7.85-inch iPad in September, according to industry supply chain sources.

Price Fixing

• The Justice Department has asked a federal cout to fine AU Optronics $1 billion for its role in a price-fixing case focused on LCD panels, Reuters reports, citing court documents. The government also is seeking 10 year prison terms and $1 million fines for two of the company’s officials, Hui Hsiung, a director and member of the company’s management board, and Hsuan Bin Chen, the company’s vice chairman.


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• Taiwan's AU Optronics said it would appeal against a US court decision to fine it $500 million for taking part in what prosecutors called the "most serious price-fixing" case in US history

Increasing AMOLED Material Usage

• Taiwan-based TFT-LCD panel maker AU Optronics (AUO) hopes to increase its AMOLED material usage to 70-80% by using printing processing, which is expected to be the mainstream for producing large-size AMOLED panels in the future, according to industry sources. AUO thinks that printing involves relatively low costs, including depreciation of equipment, when used in the production of AMOLED panels for TVs, the sources pointed out.

• In addition, AUO prefers use of oxide TFT to make large-size AMOLED panels while Samsung Electronics has adopted LTPS which has advantages of high stability and mobility of electrons but has higher production costs, the sources indicated.

Small Sized OLED panels

• AU Optronics (AUO) is expected to see its revenue hike in the fourth quarter due to increased orders in the third quarter for small-sized AMOLED panels, large-sized LCD TV panels and panels for Apple's reportedly soon-to-be released 7.85-inch iPad, according to industry sources.

• AU Optronics (AUO) is set to start mass producing small-sized AMOLED panels in the third quarter of 2012 with a production yield rate at around 50%, according to industry sources

Production yield rates

• Taiwan-based panel makers Chimei Innolux (CMI) and AU Optronics (AUO) are continuing to be proactive in producing small- and medium-sized AMOLED panels but are still facing challenges with the technology's

production yield rates, according to industry sources.

3D 4K*2K TV panels

• Though AU Optronics (AUO) is still reportedly facing issues with producing 3D 4Kx2K TV panels, it is nearing in on the mass production stage and will most likely mass produce 42-55-inch along with 65-inch 3D 4Kx2K TV panels by the beginning of next year, according to Digitimes, citing industry sources.

Orders from E Ink

• AU Optronics (AUO) has reportedly obtained small- and medium-sized panel orders from electrophoretic display (EPD) maker E Ink due to E Ink's dissatisfaction with tablet panels made by Chunghwa Picture Tubes (CPT), according to industry sources.

CMI

4K*2K

• Chimei Innolux (CMI) is focusing on 4Kx2K technology for use in large-sized LCD panels more than on OLED technology due to poor yield rates and low prospects for OLED, sources with the company have revealed.

Full Capacity until the end of 2012

• Sources at Chimei Innolux (CMI) said the company has order visibility until the end of 2012 and that most of its production plants are running at full capacity. The sources also said that CMI's received orders for TV panels have increased to the point where market demand might surpass the company's large-sized panel supply.

• Chimei Innolux (CMI) has reached nearly full production capacity at all of its plants due to increasing global demand for small- and medium-size products as well as increasing TV


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demand in China due to the nation's upcoming October 1 holidays, according to CMI chairman Hsing-Chien Tuan.

Increasing demand for ultrabook models

• CMI is also seeing increasing demand for panels used in various ultrabook models as well as for panels used in tablets and smartphones, according to the company. Panels for use in low-end smartphones are in high demand in China and consumers there are expected to swap out old smartphone models for new ones during the holiday period.

Shipments

• Taiwan-based TFT-LCD panel maker Chimei Innolux (CMI) shipped 13.893 million large-sized panels in August, its highest monthly volume on record, according to the company. August shipments of large-sized panels increased by 10.6% on month. Shipments of small- to medium-sized panels rose 7.8% to 36.562 million, CMI indicated.

New Sized panels

• The TV panels CMI is mostly producing are sized 39- and 50-inch, said the sources. These sizes have been popular among consumers as prices for 39- and 50-inch TVs are similar to those of 36-, 42- and 48-inch models, according to recent market observations.

OGS

• Based on our previous research, CMI has been dedicated in developing OGS (One Glass Solution) products called WIS (Window Integrated Sensor) due to their Glass/Glass type of touch panel demand may continue to shrink in 2H12. We believe that Asus Taichi could be CMI's stepping stone to tap in OGS market aimed for Tablet, Smartphone and Ultrabook. In our

view, it is positive for CMI to integrate their IPS panel, touch panel and lamination productions to increase their profit margin in 2H12.

BOE

Increasing panel shipment in China

• China-based panel makers BOE Technology and China Star Optoelectronics Technology (CSOT) have been seeing monthly 32-inch TV panel shipments exceed one million units.

• BOE's 32-inch TV panel shipments have reportedly reached 10-1.1 million units per month, while CSOT's has reached 1.2-1.3 million. BOE saw over one million TV panel shipments in July, the first time ever for a China-based maker to break the one million mark, and continued to do so in August as well.

Sumitomo Chemical

OLED development

• Sumitomo Chemical has joined Holst Centre's shared research program on printed organic lighting and signage. The move is intended to speed efforts to develop manufacturing processes for low-cost, flexible organic light-emitting diodes (OLEDs). As a leading supplier of materials for polymer OLEDs, Sumitomo Chemical's involvement in the Holst Centre eco-system will extend the program's investigation of multi-layer solution processes for high-efficiency OLEDs.


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Sumiomo Chem’s stock performance

Panel Market

Focusing on more value added product

• Taiwan- and Korea-based panel makers are slowly shifting away from focusing on producing low-priced 32-inch sized LCD TV panels to producing high-end panels, according to industry sources.

• Korea-based TV panel makers have been largely focused on OLED TV panel production while Taiwan-based ones have started shifting to 4Kx2K TV panel production, according to previous reports. The Taiwan makers have also been focused on product differentiation by producing 39- and 50-inch panels but have largely steered away from small-sized low-priced TV panel products.

Decreasing Panel Prices

• TFT-LCD panel prices have been decreasing in recent times due to oversupply and global economic instability. This has caused product prices in drop in upstream supply chains and companies such as Corning and Asahi Glass have been reporting declines in revenues.

Losses in Taiwanese manufacturers

• Taiwan-based panel makers Chimei Innolux (CMI), AU Optronics (AUO),

Chunghwa Picture Tubes (CPT) and HannStar will most likely continue to face losses in the second half of 2012 unless they revise their business models and improve production capacity to meet global supply and demand.

TFT LCD Panel Shipments

• Despite the gloomy global economy and concerns regarding the decline in sales of consumer LCD products, TFT LCD panel suppliers are still expecting 2012 shipments to grow 8% to 757 million and revenue to increase 13% to $85.3 billion. According to the NPD DisplaySearch Quarterly Large-Area TFT Panel Shipment Report, the higher growth will be triggered by strong demand for mobile PC and LCD TV panels.

LCD TV panel shipment in China

• DisplaySearch estimates that LCD TV panel shipments will be roughly six million units per month in China during the fourth quarter.

Tablet PC panel shipments

• Mobile PC/Tablet Shipments Remain Strong Mobile PC/tablet panels (excluding mini-note PCs) are growing. 2012 notebook PC panel shipments are forecast to grow 13% Y/Y, due to strong promotions for existing models and the recently introduced ultrabook models championed by Intel. Tablet PC panel makers are targeting shipments of 72.8M units of 9.7” panels in 2012, including those for the iPad 2, the New iPad, and private label tablet products. Shipments of 10.1” tablet panels are expected to be over 17M in 2012. Shipments of 10.6” panels, especially for Microsoft’s Surface tablet, are also seeing a strong ramp up in 2H’12. Total tablet PC panel shipments are expected to rise 61% Y/Y.


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LCD TV Panel shipments

• 2012 LCD TV Panel Shipment Growth Minimal 2011 was the first year that shipments of LCD TV panels declined, and panel makers were looking for a turnaround this year. For 2012, they targeted 6% growth, expecting stronger demand in China, triggered by replacements, new models, and the country’s energy subsidy program. LCD TV panel prices rebounded in Q2’12, and prices of some sizes are still rising due to the tight supply in Q3’12. New TV panel sizes such as 28”W, 29”W, 39”W, 50”W, 58”W, 60”W, and 65”W are also playing a key role in shipment growth. LCD TV panel revenue growth is helping to improve overall large-area LCD panel revenues in 2012.

OLED market

• The organic light-emitting diode (OLED) market has been forecast to increase at a compound annual growth rate (CAGR) of 32.6% over the next five years, to increase from a value of $4.9 billion in 2012, to be worth $20.3 billion in 2017.

• Segment wise, displays represented the largest category in terms of cost, accounting for $3.2 billion in 2011 and $4.9 billion in 2012 and should total $19.6 billion in 2017, at a CAGR of 31.8%.

• Lighting accounted for a smaller share in 2011 and 2012, and is expected to be worth $700 million by 2017.

Increasing orders from China

• Taiwan-based TV panel makers have been reporting increased orders from China-based TV vendors to meet growing demand for the October 1 holidays in China, according to industry sources.

Decreasing orders from Apple to Taiwan

• Taiwan-based panel makers are seeing decreasing orders for Apple products

such as the iPad 2 due to decreasing demand for products that do not have Retina display or in-cell technology, according to industry sources.

Touchscreen Panel Makers

• Taiwan-based TFT panel providers and touch screen panel makers are expected to see better than expected financial results by the end of the third quarter of 2012 due to demand for China's October 1 holidays as well as international brands gearing up for the holiday season in the fourth quarter, according to industry sources.

Touch Panel Market

• In the global touch panel market, handset applications will account for the highest proportion of shipments at 76.2% in 2012. In second-half 2012, the main change in the handset touch screen market is the release of Apple's iPhone 5 that uses in-cell touch screen technology. The supply chain for Apple's panels will be shifted from Taiwan-based panel makers to Japan and Korea- based ones, which will cause shipments for panels used in handsets to decrease for Taiwan-based panel makers from 41.3% in first-quarter 2012 to 26.9% in fourth-quarter 2012.

• Additionally, China-based panel makers will benefit from low-priced handsets in China. Due to such handsets having strict cost requirements, they will be beneficial for China-based touch screen makers. This will allow the makers' shipments of touch panels used in handsets to increase from 32.7% in first-quarter 2012 to 39.4% in fourth-quarter 2012.

• Tablet touch screen applications have seen the biggest growth in recent years and are bringing in more profit per panel due to their larger size compared with panels used in handsets. In 2012, the proportion of panel shipments used in tablets will be 8.4%. The biggest


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change in the tablet touch screen market will be Apple's 7.85-inch iPad, which uses double-layer ITO thin-film touch panels provided by Japan-based panel makers. Thus, Taiwan-based panel makers' global shipments for tablets will fall to 69% in fourth-quarter 2012 from 90.9% in first-quarter 2012.

• In the second half of 2012, as Windows 8 is about to reach the market, Taiwan-based panel makers will proactively enter supply chains for PCs that use touch panels. Because Taiwan-based panel makers began cultivating OGS (one glass solution) panel technology relatively early, they will still see revenues from PC-use touch screens due to the panel area being larger in PCs compared with handsets, despite the penetration rate for projected-capacitive touch screen notebooks and all-in-one (AIO) PCs only reaching 1% in fourth-quarter 2012.

DNP’s film type of touch panel

• It seems that DNP is ready to supply their film type of touch panel for Sony's 9.4 Tab 2 products in July. In our observations, DNP's film type of touch panel is featuring higher optical performance than traditional film type products from Taiwanese Young Fast and J-Touch. If this is the case, we have higher confidence level to believe that Apple may also consider adopting Japanese DNP or Nissha Printing's touch solution for 7.85 iPad mini in 3Q12. In our view, this may have a potential impact on Taiwanese touch

panel supply chain in 2H12 particularly for Glass/Glass type of touch solutions.

Tablet Display Shipments

• Tablet display shipments are projected to rise worldwide by 56 percent in 2012 to 126.6 million units -- up from 82.1 million units in 2011.


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Semiconductor Industry

Intel

Wireless Charging

• Intel is betting on wireless charging and plans to build the technology into its products by the end of next year. Transmitters would be built into the notebooks and ultrabooks, with receivers built into a wide range of devices using Intels chips.

Intel’s stock performance

Multi gigabit wireless

• Intel has introduced multi gigabit wireless docking technology which ensures speeds up to an astonishing 7Gbps. The momentum is said to be 10 times swifter than the rate of the fastest of the Wi-Fi networks, available in today’s technology market.

Voice and Gesture recognition

• Intel (INTC) showed off hybrid tablets and ultrabook laptops with voice and gesture recognition technology along with an upcoming low-power chip in a bid to convince Wall Street a slump in the personal computer industry is only temporary.

Attack on tablet market

• Intel and its hardware partners will launch a broad attack on the tablet market. Standing alongside Intel at an

event in San Francisco are executives from Acer, Asus, Dell, HP, Lenovo, Samsung and ZTE. Those companies are showcasing new Windows 8 tablets and convertible devices.

Hitachi

Glass Based data Storage invention

• Hitachi has developed a glass-based data storage medium that is highly heat and water resistant, capable of holding data for hundreds of millions of years, and says it may be able to bring it to market by 2015.

Broadcom

Cooperation with Rovi for DivX Steaming

• Driving digital entertainment innovation, Rovi Corporation (ROVI) and Broadcom announced that Broadcom's latest IPTV platforms will support DivX Plus Streaming(TM).

Broadcom’s stock performance

OpenTV 5 implementation

• Broadcom Corporation (NASDAQ: BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, announced the release of validated drivers for


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OpenTV 5, the latest, most open and most powerful set-top box middleware from NAGRA. NAGRA is the digital TV division of the Kudelski Group (SIX:KUD.S) and the world's leading independent provider of value-added content protection and multiscreen television solutions. Visit Broadcom.com or www.nagra.com/dtv to learn more.

5G WiFi DOCSIS 3.0

• Broadcom Corporation (Nasdaq: BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, announced the industry's first 5G WiFi DOSCIS 3.0 cable gateway platform. By integrating the DOCSIS 3.0 modem with Gigabit wireless connectivity into a complete turnkey solution, Broadcom is enabling cable operators to deliver fast, reliable, whole-home coverage to subscribers.

Wireless base station solution

• Broadcom Corporation (BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, introduced the BCM51030 devices with VersaLineTM Digital-Pre-Distortion technology. Delivering the industry's widest bandwidth support for wireless base stations and emerging HetNet radio applications, the new solution offers the full functionality of a digital front end (DFE) platform on a single chip with up to 10x wider bandwidth support to address fragmented spectrum

STMicro

Cooperation with MicroOLED

• Chipmaker STMicroelectronics (ST) has established a strategic agreement with MicroOLED, a company dedicated to the development and commercialization

of organic light emitting diodes (OLEDs). To underscore the strategic significance of the agreement, ST also took a minority equity investment of approximately 6 million Euros in the Grenoble-based company. The joint activities of both companies aim at developing micro-displays for portable devices.

STMicro’s stock performance

DOCSIS 3.0

• STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications and a top player in ICs for digital TVs and set-top boxes, will demonstrate a cable modem meeting the latest DOCSIS® 3.0 specifications at IBC 2012, Amsterdam, September 7 to 11.

NXP

DisplayPort and HDMI

• NXP Semiconductors N.V. (NASDAQ: NXPI) announced two high-performance switches supporting DisplayPort and HDMI architectures. The latest additions to NXP's high-speed computing portfolio include the CBTL06DP213, a bi-directional switch for DisplayPort 1.2 applications featuring industry-leading bandwidth over 11 GHz; and the CBTL06GP212, the industry's first switch to enable simultaneous support for both


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DisplayPort 1.2 and HDMI 1.4. Both are multi-channel capable devices designed using NXP's high-bandwidth analog pass-gate technology.

NXP’s stock performance

Thundebolt Technology

• NXP Semiconductors N.V. has unveiled the company’s next-generation, high-performance switch supporting Thunderbolt technology developed by Intel Corporation. The CBTL05024 features 10 Gbps performance and excellent signal integrity.

Atmel

Touch controller

• Atmel Corporation (ATML) recently announced that leading telecommunication equipment maker Samsung has selected the former’s maXTouch mXT1664S controller to power its recently launched Galaxy Note 10.1 tablet touchscreen.

Atmel’s stock performance

STMicroelectronics

Pressure Sensor

• STMicroelectronics has launched a new pressure sensor that allows mobile phones and other portable devices to calculate their vertical elevation relative to sea-level with very high accuracy.

STMicro’s stock performance

Micron

Approval to buy out Elpida

• Micron Technology has announced that it received U.S. regulatory approval to buy out Elpida Memory for $2.5 billion after no issue was raised upon expiration of the waiting period of the antitrust review.

Micron’s stock performance

Financial

• Micron Technology Inc posted lower-than-expected quarterly results as weak PC sales continue to weigh on its chip business. DRAM (dynamic random access memory) makers such as Micron


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are heavily dependent on the PC industry, which consumes close to 50 percent of the total output. They are now looking at mobile and server markets to lower their reliance on PC makers.

TSMC

Sales

• Taiwan Semiconductor Manufacturing Co. (TSMC) has announced that it expects third quarter sales to be slightly higher than its earlier forecast mainly due to pull-in of customer shipments. However, the Hsinchu-based foundry said its annual percentage increase dropped in July suggesting a sharp slowdown in the fourth quarter up until the first quarter of 2013.

TSMC’s stock performance

Capital Expenditure

• In related financial reports, TSMC is supposedly planning to set its capital expenditure for 2013 at $10 billion, up from about $8.25 billion in 2012, as it prepares to supply processors for Apple. The additional funding will be spent primarily on advanced lithography tools to expand production of 28-nm and 20-nm manufacturing capacity and for the development of 16-nm process technology. Pilot production of Apple processors is

expected to start in the first half of 2013 with volume production following in the second half, according to Taiwan Economic News.

Mediatek

Cooperation with Lenovo for Andrroid Tablet

• MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, announced that Lenovo has selected its highly integrated Android mobile platform for the new LePad A2107, dual-SIM 3G/HSPA tablet, which is shipping to customers globally.

Mediatek’s stock performance

Wi-Fi Certification

• MediaTek Inc., a leading fabless semiconductor company for wireless communications and digital multimedia solutions, announced that its 802.11a/b/g/n Dual-band Mobile Phone Client (MT662X), 802.11n Wireless Adapter (RT3592) and DTV Sink solutions (MV0690) have all been selected as part of the Wi-Fi CERTIFIED Miracast™ test bed. As the benchmark to drive interoperability testing for the newest Wi-Fi program, MediaTek's Miracast-certified solutions allow mobile devices to wirelessly stream multimedia content, such as video and games, onto big screen DTVs without a connection to an access point.


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Entropic

SoC solution for Ultra Slim STB

• Entropic Communications, Inc. (ENTR), a world leader in semiconductor solutions for the connected home, proudly announced that its technology has been selected as the system-on-a-chip (SoC) solution for EchoStar's recently launched Ultra Slim Box, an advanced, high definition (HD) digital TV recorder combining Freeview+ HD and access to Smart TV entertainment.

Entropic’s stock performance

Cooperation with IP4.tv for hybrid STB

• Entropic Communications, Inc. (ENTR), a world leader in semiconductor solutions for the connected home, announced that by working with IP4.tv GmbH, a leading European manufacturer of next-generation hybrid set-top boxes, the Company has successfully achieved Common Interface Plus (CI+) certification for IP4.tv's latest IP+DVB-S2 Hybrid set-top box (STB). This particular STB is aimed at the Pay-TV operator market and was deployed with a major European operator in August 2012.

ALi

Cooperation with Panasonic Semiconductor

• ALi Corporation, a leading Set-Top Box (STB) System-on-Chip (SoC) solution provider, announced that it has joined forces with Panasonic Corporation’s Semiconductor Business Group to begin

mass production of a new Digital Video Broadcasting – Second Generation Terrestrial (DVB-T2) STB solution in the third quarter of 2012. The collaborated DVB-T2 project will bring optimum cost and performance value to emerging markets, opening up tremendous opportunities for both ALi and Panasonic Semiconductor in regions such as Eastern Europe, Asia Pacific and Africa.

GreenPeak

Dual Protocol Zigbee

• GreenPeak Technologies's GP710 is a dual-protocol ZigBee communications controller with simultaneous support for ZigBee RF4CE and ZigBee IP/ZigBee PRO protocols.

Trimble

Acquisition of Logicway

• Trimble Navigation (TRMB) recently announced that it has acquired privately-held Logicway based in Oldenzaal, The Netherlands. The financial terms of the deal were not disclosed. Logicway is a specialized software developer for the transportation and logistics (T&L) industry. Its software not only helps in synchronizing end-to-end business processes but also automates the steps involved in the wages and expenses calculation for businesses, helping to improve productivity and operational efficiency.

Trimble’s stock performance


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eMagin

OLED Deposition Machine

• eMagin Corporation (NYSE MKT: EMAN) (the “Company”), the leader in the development, design and manufacture of Active Matrix OLED microdisplays for high resolution imaging products, announced that its new SNU OLED deposition machine has achieved automated operation, providing the Company with increased deposition capacity to better address its growing worldwide market demand with the most advanced OLED microdisplays.

eMagin’s stock performance

Semiconductor Market

Chip Market

• The combined economic slowdowns of the U.S., China, and Europe negatively impacted semiconductor sales in the second quarter. Recent research from IHS iSuppli showed that global chip sales in the second quarter of 2012 declined 3 percent to $77 billion when compared to the second quarter of 2012.

LED Chip

• Asia is playing an ever more important role in upstream LED chip manufacturing. Digitimes Research projects that the region will account for 90% of global demand for MOCVD

units in 2012, up ten percentage points on the share in the previous year. China accounts for 68% of this figure, although its LED chip makers still need to make major improvements to their technology; consequently, manufacturers in Taiwan, Japan and South Korea continue to have a competitive edge at present.

• Japanese manufacturers are projected to have the highest total output value of any Asian nation/region for their LED businesses in 2012 at US$3.6 billion with year-on-year growth of 17%; followed by South Korean firms with US$3.2 billion and growth of 49.6%, thanks to vertical integration and the fact that output value figures also include modules; and Taiwan-based players with US$1.69 billion, due to their focus on LED component production. However, if modules are removed from the output value equation, Taiwan-based manufacturers will in fact outperform their South Korean counterparts in 2012.

• China-based manufacturers that have recently prospered are projected to increase output value by 30% year on year to US$1.42 billion in 2012 as their newly acquired MOCVD capacity comes online. However, most China-based manufacturers mainly produce medium and low power LEDs, and as such pose little threat to the global industry standing of other players in the Asia region at the current time.


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Wireless sensor market

• The wireless sensor network market, led by ZigBee, grew ten-fold from 2007 to 2010 and exceeded 45 million annual shipments in 2011. “Strong growth is expected for 2012 and beyond as ZigBee pervades the home automation and home entertainment markets, whilst Smart Meters continue to be rolled out across the globe,” commented Peter Cooney, wireless connectivity practice director.

• Smart metering is the largest market for ZigBee in 2012 and will continue to be the major market growth driver as global roll outs of smart meters continue apace. ZigBee/RF4CE use in the home environment will also be a major growth driver. Home automation and home entertainment together are forecast to grow to over $300 million per annum by 2017.

Wireless connectivity market

• The total market for standards-based wireless connectivity chipsets is expected to exceed $10 billion in 2012, this includes both standalone and combo chipsets that use Bluetooth, Wi-Fi, GPS, NFC, UWB, and ZigBee.

• The number of Bluetooth enabled devices shipped per annum will surpass 2 billion in 2012, whilst Wi-Fi will creep over 1.5 billion; many of these (such as smartphones) will contain both technologies, often integrated onto a combo chipset. Wi-Fi remains much more costly to implement due to significantly larger die sizes needed and therefore chipset revenues from Wi-Fi ICs (both standalone and combo) far exceed those for any other technology.

• According to market research firm, ABI Research, wireless sensor network shipments will exceed 8 crore units this year. The ZigBee led wireless sensor network market grew ten times from 2007 to 2010. It had also exceeded 4.5 crore annual shipments in 2011.

• ,

MEMS sensor market

• The ever growing popularity of mobile devices and increasing usage of MEMS sensors are set to drive sales for MEMS sensor vendors. New market intelligence from ABI Research projects the MEMS sensor market in mobile devices will be valued at $1.2 billion by the end of 2012 and reach $2.8 billion in 2017.

Automotive Electronics

Denso

Cooperation with Toyota

• Toyota Motor Corporation and DENSO Corporation are jointly developing an on-board communications network device, CAN-Gateway ECU, that can take data gathered while driving and apply it to create a virtual simulation that enables a new way to enjoy driving.

Denso’s stock performance


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Software Industry

Google

Acquisition of VirusTotal for security

• Google has bought startup VirusTotal, picking up a fledgling but widely used cybersecurity industry player in a move that could beef up protection for its Internet services.

Google’s stock performance

Acquisition of Nik Software

• Google Inc said it bought Instagram rival Nik Software, which makes award-winning photo editing application Snapseed, for an undisclosed amount.

Microsoft

Patent licensing with RIM

• Research In Motion's shares jumped after it signed a patent licensing deal with Microsoft Corp to use one of the technology company's file storage systems.

• Microsoft said the patent being licensed by RIM greatly expands the size of files that flash memory devices can handle and increases the speed at which those files can be accessed. The technology also provides the ability to seamlessly transfer data between a variety of different devices.

Microsoft’s stock performance

Windows 8

• Windows 8 will help boost overall sales of tablets by nearly 10 million this year over estimates made just three months ago, but Android and Apple products will be the main driver behind the increase, according to IDC.

• The raw numbers are 107.4 million in 2012 sales predicted in June vs. 117.1 million in a new forecast this week from the research firm.

• Apple is the leader and will retain that position with about 60% of the market, but Windows tablets will jump from just 1% last to 4% this year, according to IDC research director for mobile connected devices Tom Mainelli.

Fines

• US software giant Microsoft faces yet more heavy fines after it promised to offer clients a choice of web browser but has failed to do so, the EU's competition commissioner said on Monday.

Windows Store

• The Windows Store, a new online marketplace for applications for Windows 8 and Windows RT computers, is now open to developers in 120 geographic markets, Microsoft said on Tuesday.


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Foreign Workers

• Microsoft has urged the US Government to issue 20,000 additional H-1B visas to foreign workers with skills in science, technology, engineering and mathematics (STEM).

Saving from tax bill

• Microsoft has saved nearly $7 billion off its U.S. tax bill since 2009 by using loopholes to shift profits offshore, a Senate panel said in a report released Thursday.

Oracle

Increasing software revenues

• Oracle Corp's hardware sales are expected to drop further after tumbling 24 percent from a year ago, the software maker said, as it strives to turn around its Sun computer division amid tight technology budgets.

• The company run by Silicon Valley billionaire Larry Ellison reported on Thursday that hardware product sales fell to $779 million in its fiscal first quarter ended Aug 31. It had forecast a decline of 7 to 17 percent.

• Oracle also reported that new software sales rose 6 percent from a year earlier to $1.6 billion, in line with its own forecasts.

Oracle’s stock performance

Service Industry

Vodafone

Kuwait telecom services

• Vodafone has signed a deal with Kuwait's Zain Group to expand its telecommunication services in the Middle East.

Vodafone’s stock performance

Telecom Italia

Acqusition of Vivendi’ GVT

• Italy's largest telecoms operator Telecom Italia said on Friday it was not looking into the possible acquisition of Vivendi's GVT phone unit in Brazil.

Telecom Italia’s stock performance

Akamai

Acquisition of Factsoft for cloud infrastructure

• Akamai Technologies Inc. ( AKAM ) has acquired FactSoft Inc., a California-


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based web content acceleration software provider. Akamai made the acquisition in a bid to strengthen its cloud infrastructure solutions. The financial details of the deal were not disclosed.

Akamai’s stock performance

Vivendi

Pay television JV in Poland

• Poland's competition watchdog cleared France's Vivendi(PAR:VIV) to establish a joint venture that will try to challenge for a bigger slice of Poland's crowded pay-television market.

Vivendi’s stock performance

Approval of acquisition of EMI

• Vivendi's Universal Music Group won European and U.S. approval for its $1.9 billion (1.1 billion pounds) purchase of EMI's recorded music business on Friday, with the EU requiring the company to sell labels that account for about a third of the British company's revenues.

BBC

Madia Player

• The BBC has released its own media player that allows for playback of its iPlayer catch-up service on Android mobile devices. Users of Google's mobile OS have previously been forced to rely upon Adobe's previously ubiquitous Flash platform to watch content from the broadcasting and entertainment provider.

DirecTV

Bidding for Vivendi’ Brazilian telco unit

• DirecTV (DTV) is one of several companies considering a bid for Vivendi SA's (VIVEF, VIV.FR) Brazilian telecom unit, Bloomberg News reported, citing two people familiar with the matter.

DirecTV’s stock performance

Shazam

Expanding to TV application

• Shazam is pursuing the television market, launching a major update to its app that will enable its 80 million users in the U.S. to tag any TV program on any channel.


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Agilent

LTE MIMO OTA Test Research

• Agilent Technologies Inc. (NYSE: A) announced a memorandum of understanding has been signed with the China Academy of Telecommunication Research (Telecommunication Metrology Center), or CATR (TMC). The two organizations have agreed to work together on TD-LTE MIMO over-the-air (OTA) test research.

Agilent’s stock performance

Turkcell Superonline

Point of Presence

• Inteliquent (NASDAQ: IQNT), a leading provider of global interconnection and interoperability solutions announces the establishment of its Turkish subsidiary, as well as its strategic alliance with Turkey's innovative operator, Turkcell Superonline. With these initial steps, Inteliquent plans to expand its operations and will soon begin to offer service to Turkey and the Middle East via a Point of Presence (PoP) hosted inside the Turkcell Superonline datacenter.

Inteliquent’s stock performance

YemekSepeti

Investment to online food order platform

• As if you needed to be convinced that Istanbul is one of the world’s hottest technology start-up scenes, New York private equity firm, General Atlantic, announced a $44 million stake in Turkish on-line food order platform, Yemeksepeti.

Baidu

Cloud Computing

• China's largest search engine Baidu Inc will invest more than 10 billion yuan ($1.6 billion) to set up its cloud computing centre, Baidu's chief financial officer Jennifer Li said.

Service Market

Pay TV services

• The global pay-TV market continues to grow despite a decline in the North America pay-TV market in 2012. ABI Research forecast that global pay TV subscribers will reach 858.1 million at the end of 2012, a 5% year-on-year increment from 2011. The key growth will be driven by the Asian-Pacific market which is expected to add more than 27 million subscribers in 2012.

LTE services

• Nine million subscribers are on LTE today out of 3.6 billion cellular users worldwide. 15 million macro transceiver TX and RX DFE channels shipping in 2016.

Cloud Services

• Cloud organization Cloud Industry Forum announced it has established the Cloud Service Provider Code of Practice to promote trust, security and transparency within the sector.


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• According to Gartner, the cloud services market is expected to grow over 3 times by 2015 to $177.0 billion. According to market research firm IDC, spending on public cloud services is expected to increase four times faster than the entire IT market over the next four years, reaching $72.9 billion by 2015. This tremendous growth potential will benefit Akamai, especially in the enterprise segment with the rapid adoption of cloud technologies.

Cloud based Game

• A group of big pay TV operators is gearing up to challenge such video game consoles as Sony Corp.'s PlayStation 3, Microsoft's XBox 360 and Nintendo's Wii by making games available via TV sets, Bloomberg News reported.

• The cloud-based games push could accelerate a consumer move away from consoles, which have been the gaming industry’s core money maker. The video game console business was worth $24.1 billion in the U.S. last year, according to research firm NPD Group.

Retailer and Payment Industry

Verifone

Weak revenue Outlook for Q4

• VeriFone Systems, Inc (PAY:Quote) reported an increase in profit for the third quarter, helped mainly by higher revenues. However, the company provided a weak revenue outlook for the fourth quarter, fiscal year 2012 as well as fiscal 2013. Following the announcement, the company's shares fell 12 percent in the after-market hours.

Verifone’s stock performance

Cooperation with Oracle

• Oracle’s Retail Mobile Point-of-Service, announced this week, was developed using the PAYware Mobile Enterprise solution and software development kit, VeriFone Systems, Inc. (NYSE: PAY) announced.

Cooperation with Finish Line

• VeriFone Systems, Inc. (PAY) recently announced that Indiana-based retailer The Finish Line (FINL) has deployed its mobile checkout and multimedia-driven countertop payment solutions to improve the shopping experience of its consumers, following a successful trial.


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Ingenico

Mobile POS terminal

• Ingenico (Euronext: FR0000125346 - ING), leading worldwide provider of payment solutions, announced that its latest iWL2 series mobile point-of-sale (POS) devices have obtained certification through AT&T's 3G Wireless Network. With this certification, the iWL2 series terminals become the payment industry's first secure wireless devices to operate on the 3G network.

Ingenico’s stock performance

Mobile Payment in Czech Rebuplic

• French NFC vendor, Ingenico says that it has been selected as supplier of payment terminals for the launch of NFC based mobile payments in the Czech Republic, in partnership with Telefonica, Visa Europe, Komercni Banka and Samsung.

Mobile Payment solution

• Ingenico (Euronext: FR0000125346 - ING), world leader in payment solutions, accelerates the deployment of its growth strategy on the mobile payment solution market to respond to increasing demand for m- commerce solutions. Therefore and in order to face the challenges of this promising market, the Group strengthens the management team of ROAM Data, an Ingenico company and leading mCommerce Platform-as-a-Service (PaaS) provider.

Mastercard

Deal with Myanmar Bank

• MasterCard said it had signed a deal with a Myanmar bank that it hopes will pave the way for electronic payments, in an impoverished country where most transactions are made in cash.

Mastercard’s stock performance

Vodafone

Mobile Payment

• THREE MAJOR UK TELECOM PROVIDERS, Everything Everywhere, O2 and Vodafone, have won bids to offer a mobile wallet partnership to consumers. According to the Financial Times (paywalled), the European Commission approved the venture dubbed Project Oscar today, giving the mobile operators the go ahead to compete with rival payment services such as the rumoured Google Wallet, which is also expected to launch this Autumn.

ISIS

Mobile Payment

• Isis, a venture of three big U.S. mobile providers, is delaying the launch of its mobile payments service for the second time this year, an executive for the company said on Thursday.


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Facebook

Mobile Payment cooperation

• Facebook's partnership with Bango will offer a seamless mobile payment system that charges in-app purchases to the user's mobile carrier.

Facebook’s stock performance

Fujitsu

POS solution

• Fujitsu announced that it has worked together with the major Japanese drug store chain, Tsuruha Holdings, Inc., to develop a retail system for its first store outside Japan, which opened this July in Thailand.

Fujitsu’s stock performance

Groupon

New Payment Solution

• Groupon Inc, the world's largest online daily deals provider, launched a payment business and entered a

crowded field where it will compete aggressively on price with eBay Inc's PayPal and start-up Square Inc.

Groupon’s stock performance

Oracle

Retail Mobile POS solution

• To help retailers improve customer service and increase efficiency, Oracle introduced Oracle Retail Mobile Point-of-Service, a mobile extension to Oracle Retail Point-of-Service (POS) that enables store associates to assist customers and securely complete transactions from anywhere in the store using mobile devices.

Telit

Cashless services for vending machines

• Telit Wireless Solutions, a leading global provider of high-quality machine-to-machine (M2M) modules and value-added services, recently announced that its M2M cellular modules used by Nayax, a world leader in cashless and telemetry systems, are to enable cashless services for vending machines operated in Scandinavia by Selecta Nordic.


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Telit’s stock performance

Metering

• Telit Wireless Solutions, a leading global vendor of high-quality machine-to-machine (M2M) modules and value-added services, recently announced the market introduction of the ME70-169 wireless M-Bus module for the European utility meter industry. The new module operates on European license-free frequency of 169MHz allowing manufacturers to quickly integrate utility metering products which meet regulatory compliance for short-range radio link without diverting development focus from the core metering functionality.

Discover bank

Credit protection

• Discover Financial Services said its subsidiary, Discover Bank, will pay about $200 million to cardholders who bought certain credit-protection products over the phone, as part of an agreement with U.S. regulators. The issuer of credit cards, which reached an agreement in principle with the Federal Deposit Insurance Corporation (FDIC) and Consumer Financial Protection Bureau (CFPB), will pay an additional $14 million in penalties to be split between the regulators.

Discover Financial Services’ stock performance

Orpak

Cooperation with Neste Oil in Finland

• Neste Oil, Finland's largest oil retailer, today announced that it has launched the FuelOmat Gold automated vehicle identification solution at its selected Truck stations throughout Finland.

• The solution is provided by Orpak Systems, the global leader in automated fueling solutions based on RFID vehicle identification. This new technology is being offered to Neste Oil's commercial fleet customers under the Truck+ name.

Regal Payment

Partnership with ICG Software

• Regal Payment Systems, LLC, a leading provider of payment processing services, announces a new partnership with ICG Software, a multi-national corporation specializing in software and hardware solutions for the Retail and Hospitality industries, to bring the HioPOS Plus All-In-One POS System to US markets. Regal Payment Systems has developed a strategy that will reach untapped markets and provide a more suitable and cost effective alternative to Cash Registers and Lower End Point of Sale Solutions with more flexible program options.


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Retail&Payment Market

RFID Market

• The traditional uses of RFID for the identification of animals, people, and within the automotive sector are continuing to grow and are projected to increase by $2.8B from 2012 to 2017. However, ABI Research’s new RFID Market Tracker found that modernizing RFID applications will grow twice as fast with annual revenues derived from these jumping by $4.5B in the same timeframe.

Energy Industry

Hitachi

Electric Cars

• Hitachi Europe said it will co-ordinate on a new EUR4.3m pan-European research project to develop smart infrastructure to support the use of electric cars.

Wind Turbines

• Toshiba Corp<6502.T>, Hitachi Zosen Corp<7004.T>, JFE Steel Corp(JFEST.UL) and three other companies plan to invest 120 billion yen over a decade to set up offshore wind turbines, the Nikkei reported.

Toshiba

Smart Power Grids

• Toshiba Corp. said it and France's Alstom Grid, the electric transmission arm of the world's leading power infrastructure firm Alstom, have signed a memorandum of understanding to partner up in the smart power grid business. The two aim to develop wide-ranging electricity management solutions and jointly work out systems that integrate renewable energy sources into smart grids and help lower power costs.

Sharp

Selling its solar cell units

• Sharp, which is in the middle of making its revival plan to receive financial support from lenders, is also planning to sell its U.S. solar cell unit Recurrent Energy, said the sources, who declined to be identified because the matter has not been made public.


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IBM

Smart Cities

• Speaking at the IBM Smarter Cities Forum, Shankar Annaswamy,Managing director,IBM India said that it is estimated that USD 1.2 trillion capital investment is needed to meet projected demand in (Indian) cities to transform the cities going forward(quoting a McKinsey & Company report) Investment of about $1.2 trillion is required over the next 20 years across areas like transportation, energy and public security to build cities of tomorrow, IBM India Managing Director Shanker Annaswamy said.

• "By 2050, it is estimated that 70 per cent of the global population would live in cities as people migrate to urban areas for better opportunities. This would mean that cities need to be planned in a way to effectively handle the situation. Technology can be used to support the system and transform cities," said Samuel J Palmisano, IBM Corporation Chairman of the Board.

Toyota

Cooperation with Tesla

• The RAV4 EV combines a Tesla designed and produced battery and electric powertrain with Toyota's most popular SUV model. The joint team focused on optimizing the consumer experience from remote charging options to interior comfort and convenience, along with futuristic interactive displays by combining the practical features of an SUV with aerodynamic styling and an electric powertrain for the longest estimated driving range rating of any non-luxury EV.

Toyota’s stock performance

New Hybrids cars

• Toyota Motor Corp. is boosting its green vehicle lineup, with plans for 21 new hybrids in the next three years, a new electric car later this year and a fuel cell vehicle by 2015 in response to growing demand for fuel efficient and environmentally friendly driving.

Hyundai

Fuel Cell Vechicles

• Hyundai, which has lagged its rivals in battery-powered electric cars, aims to leapfrog that technology and roll out what it calls the world's first production fuel-cell electric vehicles at this week's Paris auto show. A fuel-cell converts hydrogen and oxygen into water and generating power to drive an electric motor. Fuel-cell vehicles can run five times longer than battery electric cars on a single power-up, and it takes just minutes to fill the tank with hydrogen, compared with 8 hours or so to recharge a battery.

Bosch

Disbanding cooperation with Samsung SDI

• Robert Bosch GmbH and Samsung SDI announced the companies would disband their 50/50 lithium-ion battery joint venture SB LiMotive.


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Trilliant

Smart Grid Deployment

• Trilliant, a global smart grid communications leader in delivering solutions that enhance energy efficiency, utility operations, and renewable resource integration, announced the full scale roll-out of a smart grid deployment with the Victoria Electric Cooperative in Victoria, Texas. Building on a successful 2011 pilot project, this deployment leverages the Trilliant Communications Platform and consists of Trilliant's multi-tier SecureMesh® solution to deliver advanced utility services to the Texas town. The deployment will be completed by the end of 2014.

Energy Market

Smart Meter Shipments

• IDC Energy Insights yesterday released the results of the Worldwide Quarterly Smart Meter Tracker. Global smart meter shipments in the second quarter of 2012 (2Q12) grew 33.6% over the previous quarter, and were up nearly 51.3% year over year. By the end of 2012, IDC expects worldwide annual meter shipments to surpass 130 million units.

Smart Metering in Britain

• Britain will be nearly GBP14 billion better off thanks to the introduction of smart meters to British homes and businesses, according to a new report published today by British Gas and Oxford Economics.

Smart grid test between Japan and US

• A joint smart grid test between Japan and the United States has started in Los Alamos in the southern U.S. state of New Mexico, Japan's state-affiliated Energy and Industrial Technology Development Organization, or NEDO,

said. The test, which uses solar power as a source of electricity generation, is intended to study ensuring stable power supply to a smart house with the use of information technologies. The project is undertaken by NEDO and the New Mexico government. Toshiba Corp. designed the whole system for the project, and Hitachi Ltd. provided storage batteries.

China Made Electric Cars

• Eleven Chinese ministries and government agencies are test-driving China-made electric cars and more will follow suit, state news agency Xinhua said, in the latest show of state support for the country's fledging green vehicle industry.


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Healthcare Industry

GE

Acquisition of German companies

• General Electric plans to make acquisitions in Germany to raise its market share in CAT scan and MRI technology, the company's new Germany chief told a magazine.

GE’s stock performance

References

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