VR for Nintendo NX means mass production delayed to early 2017

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1 Tel: Thursday Fax: Advertising:editor@digitimes.com June 2, 216 VR for Nintendo NX means mass production delayed to early 217 Aaron Lee, Taipei; Joseph Tsai, DIGITIMES Nintendo s next-generation game console, the Nintendo NX is now scheduled to enter mass production in early 217, setting up a delay of about half a year from the company s original mass production plan for the second half of 216, according to industry sources. The sources from the related upstream supply chain pointed out that the delay was because Nintendo wished to further integrate the game console s video-game/handheld-game functionality to enhance the overall gaming experience, while also adding a virtual reality (VR) function into the system to make the solution more competitive amid dramatic improvements in the related technology available to vendors. The Nintendo NX will be assembled by Foxconn Electronics (Hon Hai Precision Industry), but Foxconn has declined to comment on matters concerning its clients or products. The sources pointed out that the Nintendo NX combines a video gaming experience with the mobile gaming experience. The device features a 5- to 7-inch display, controller and joystick for users to play as a mobile gaming product, but it is also able to connect to a TV for users to play as a video gaming system. Nintendo is now planning to add a virtual reality function to the device to satisfy the popular trend in the gaming market. N i n t e n d o s s m a r t p h o n e games have received positive feedbacks from gamers. Since N i n t e n d o s l a u n c h o f i t s Miitomo, the number of users playing the game has already surpassed 1 million, while Nintendo s Animal Crossing, which involved social activities, also sold over 2 million units on the company s 3DS system. The sources pointed out that the supply chainy received notification to start developing mold for the Nintendo NX in mid-215 and was told that the system would enter mass production and launch in the mid-216. However, Nintendo has recently given them a new mass production schedule and asked them to start mass producing some key components at the end of 216. Nintendo s order volume for the game console has also been reduced. Nintendo originally planned to order 2 million units for the first year, but its shipment target is now only million units. The sources believe the reduction was due to the fact that video game console market has been shrinking and concerns triggered by its Wii U s unsatisfactory shipment performance of two million units in 215. Ta i w a n s F o x c o n n w i l l handle over 4 of the orders, while Japan-based Misumi and Hosiden will handle the rest. Looking for Intel inside

2 2 NEWS Thursday June 2, 216 Shifting allegiances and a failed joint venture exemplify TPV-Inventa all-in-one PC shipments, (m units) a stagnating AIO PC industry Betty Shyu, DIGITIMES Research The landscape of the global OEM AIO (all-in-one) PC market will undergo a dramatic change in 216 as number-two maker TPV-Inventa Technology begins making its gradual exit from the segment, according to Digitimes Research. Asia Vital Components (AVC), a supplier in Lenovo s PC supply chain, and Compal are expected to benefit the most from the exit, though Inventec the parent company of TPV-Inventa will also pick up some orders. Both TPV-Inventa and Compal were manufacturing partners of Lenovo and Asustek. But while Lenovo will shift the bulk of its TPV-Inventa orders to AVC - though some will go to Compal Asustek will shift most of its orders to Compal. Overall, Compal s AIO PC shipments are expected to grow a dramatic 56% on year in 216. However, Quanta Computer will continue to be the top OEM/ ODM maker for AIO PCs in 216 thanks to orders from Apple. The maker will account for 35% of global OEM AIO PC shipments, which are expected to approach 13 million units in 216, according to a Digitimes Research forecast. PTV-Inventa, which held a 16.5% share in the segment last year, is expected to see its AIO PC shipments decline to below 9, units in 216, representing a drop of 62% from 2.37million units shipped one year earlier. Pegatron Technology, Wistron and Compal Electronics will each account for a 1-13% share. AVC is expected to snap up a total of 1.2 million AIO PC orders from Lenovo in 216. While the increased orders won t make AVC become a major player in the AIO industry, the company will become a more competitive second-tier maker. AIO partnerships fraying amid falling shipments In October 215, Digitimes reported that Inventec raised its stake in TPV-Inventa - its allin-one PC manufacturing joint venture with TPV to 9, up from an original stake of 49%, as TPV began souring on a shrinking market that was more suited to PC makers than display players. At the time, Inventec noted that while the AIO market was a tough market to succeed in, the company remained optimistic about the product line. TPV-Inventa had already turned profitable in 214 and its AIO shipments in 215 were a record high 2.37 million units, despite the overall market shrinking 5% on year. However, Inventec soon had to face another setback - the petty jealousies and betrayed loyalties that govern the contract manufacturing industry. TPV- Inventa had been a manufacturing partner of Lenovo in the AIO market. Meanwhile in the notebook market, China-based Xiaomi decided it would enter into the 2-in-1 device (tablet and notebook hybrid) business the vendor is scheduled to release a 12.5-inch and a 13.3-inch 2-in- 1 device in June or July, priced beginning at US$499. This maneuver will bring Xiaomi in direct competition with Lenovo, which is not pleased with the increased competition it faces. Feeling betrayed by Inventec, Lenovo decided to gradually shift its orders away from TPV-Inventa to other makers. From Inventec s perspective, it was becoming clear that the AIO market was just not worth the trouble, especially compared to opportunities in the notebook market. The scale of the AIO market is much smaller than the notebook market and shipments have been dropping on an annual basis over the past few years. Worldwide AIO shipments were 14.6 million units in 213 and decreased to 13.3 million units in 215 and are expected to decline further to reach 12.6 million units in 216. Although the notebook market has also been suffering from declines during the past few years, shipments are still expected to reach 144 million units in 216, down 8.5% on year. Since Xiaomi has good brand recognition and stable sales channels in China, Digitimes Research expects Xiaomi s notebook orders to Inventec for 216 to reach 6, units and the orders will boost Inventec s notebook shipments in 216 to over nine million units, greatly narrowing its gap with Taiwan s fourth-largest notebook maker Pegatron. As for profitability, the average gross margin for AIOs is about 5-7%, only slightly higher than the 3-4% makers see for notebooks, but the gap is not large. For Inventec, landing orders for notebooks provides more benefits. As for TPV-Inventa, its shipments are expected to drop over 6 on year to total less than one million units in 216 and decline further to 2, units in 217 and the company will be completely out of the business by 218. TPV-Inventa s AIO PC clients include Lenovo, Hewlett-Packard (f) 217(f) Shipments 1,928 2,261 2, Y/Y Lenovo outsourcing plan changes, 216 (m units) (HP), Asustek and Toshiba. Lenovo will gradually shift its TPV-Inventa orders to AVC and Compal, while TPV-Inventa s orders from HP will be shifted up into parent-company Inventec in the second half of 216, helping Inventec s AIO shipments reach 1.2 million units. TPV-Inventa s partnership with Asustek will also end in the second quarter and Asustek will then shift those orders to Compal starting in the third quarter. The related shipments from TPV- Inventa to Asustek were around 2, units a year. Lenovo warms to Compal and AVC Digitimes Research explained that AVC first landed AIO orders from Lenovo in February 216 but only for an estimated 3, units. However, with TPV-Inventa exiting the market, Digitimes Research increased the related shipment forecast to 1.2 million 2,5 2, 1,5 1, Original plan Quanta TPV-Inv Wistron Compal AVC Total Volume 12 1,38 4 1,3 3 3,5 Proportion 3% 39% 11% 37% 9% 1 New plan Quanta TPV-Inv Wistron Compal AVC Total Volume ,3 1,2 3,62 Proportion 3% 39% 11% 37% 9% 1 5 units and AVC will supply a total of four all-in-one PC models. In addition to the shifted orders this year, TPV-Inventa will also not receive any new orders from Lenovo in 217, even though it will continue to complete its previous contracts with the vendor. Overall, TPV-Inventa will still ship 6, AIOs to Lenovo in 216 but AVC and Compal will be the China-based vendor s top AIO suppliers this year, accounting for 36% and 33% of Lenovo s AIO shipments, respectively. AVC has a tight relationship with Lenovo, including partnerships for a number of different product lines, including servers. Lenovo is also aggressively nurturing AVC to become a major ODM partner. As for Compal, its Lenovo AIO orders are expected to reach 1.3 million, up 44% from 215 s 9, units. Added to that are the Asustek orders, totaling around 1, units.

3 INTERVIEW Thursday June 2, MediaTek leverages mobile advantages to become technology enabler for IoT Sponsored content T he rapid developments of IoT (Internet of Things) have brought new opportunities for silicon vendors. As a leading provider of mobile and TV chipsets, MediaTek has been putting lots of efforts in deploying IoT market over the past years, aiming to leverage its advantages in smartphone market to make inroads into the emerging applications. We have made significant progresses with several customers launching end products to the market, JC Hsu, corporate vice president and general manager of IoT Business Development at MediaTek, said. We will keep building comprehensive IoT solutions and drive the industry moving forwards as a technology enabler. Bring Mobile Advantages into Full Play Hsu explained that IoT is a natural evolution from mobile Internet technology, along with the availability of telecommunication infrastructure. For a wide range of consumer IoT devices, low-power, connectivity, and multimedia are the key features, and these are the areas that MediaTek excels at. In terms of power consumption, IoT devices require more compact area but perhaps only one fifth of power budget. Similarly, connectivity includes cellular, Wi-Fi, Bluetooth and other standard, thus we need to consider higher integration and interference issues in a smaller area. All these will be the critical factors for chip vendors to stand out from the competitive market. In addition, quality multimedia and camera functions a r e a l s o e s s e n t i a l. Wi t h o u r strengths in the TV, DVD, and mobile phone market, we are fully confident that we will be able to embrace new opportunities. H o w e v e r, t h e r e a r e s t i l l plenty of challenges to be solved in the market. IoT market is characterized by full diversity, small volume, multiple standards, security, and service-oriented vertical applications. Because o f d i f f e r e n t f u n c t i o n a l i t y, specifications, and services, the turnkey solutions that used to be successful in mobile phone market can no longer fit. It challenges not only device makers design and manufacturing ability, but also chip vendors to provide total solutions. Providing Solutions to Lower Design Barriers In order to embrace market trends, according to Hsu, MediaTek is the members of G S M A, 3 G P P, O I C ( O p e n Interconnect Consortium), working with leading companies to participate in standardization process. Moreover, MediaTek s products are designed to support JD Cloud, Aliyun, OIC, and Apple Home Kit standards, as well as software and hardware development kits, in a bid to meet various product requirements. Strategically, MediaTek will mainly focus on consumer market, where the company already has solid customer bases, and then expand to other applications, including industrial and automobile. There are already some customers adopting MediaTek s MT252 and MT261 to develop a wide range of wearables, such as smartwatches, fitness bands, kid shoes, and bike computers. In addition, early this year, the company announced MT2511, Your Op mized Data Center MediaTek will be highlighting how it enables IoT solutions at Computex 216 its first bio-sensing analog frontend chip designed for health and fitness devices, to enable bio signal acquisition through electrocardiography (ECG) and photoplethysmography (PPG) simultaneously. Another new product is MT7697, which delivers low energy Bluetooth and dual-band Wi-Fi for smart home and home automation products. On the other hand, MediaTek endeavors to provide comprehensive hardware and software solutions and easy-touse development platforms to help customer lower entry barrier and shorten time to market. At the same time, the company also actively builds an ecosystem, forming partnership with companies across different industries. For example, by establishing MediaTek Labs, MediaTek tries to help developers and start-ups to quickly move from concept designs to mass production. With the market featured with smallvolume but large-variety, it is difficult for developers and startups, which have very limited resources, to find manufacturing partners. We hope to play a role between them and to fulfill both of their demands, so that these companies will be able to shorten time to market and get success. F u r t h e r m o r e, M e d i a Te k has actively sponsored several innovation competitions and cultivation programs in Taiwan and China to explore new innovative products and foster talents. A m o n g t h e m, Ti n i t e l l, a Sweden-based start-up, adopted our solutions to develop a wearable mobile phone for kids. By integrating 2G and GPS functions, the product can not only help parents track the locations of kids, but also talk to them directly. It was us that help Tinitell find a suitable manufacturer in China. This is a perfect example of how MediaTek Labs supports star-ups to launch products on market, because we believe that our success relies on customers success, Hsu said. Innovation + Cross Cooperation to Shape New Landscape As for industrial applications, C h u n g h w a P r e c i s i o n Te s t Technology Company (CHPT), a subsidiary of Chunghwa Telecom, adopted MediaTek s solution to develop data acquisition equipment, heading to embrace the Industry 4. trend. Also, the smart remote control devices developed by China s BroadLink can be used to control home appliances through mobile apps, the first step to realize the smart home vision, and the products has been moved into mass production this year. These are some of the successful stories that MediaTek has achieved to diversify its customer base in IoT market recently. In terms of automobile applications, according to Hsu, by combining cellular and GPS technologies, various connected car applications, such as fleet management and asset tracking, are increasingly popular, and this is the area that MediaTek can play an important role. He emphasized that the success of IoT relied on the combination of business models, hardware devices, and applications. Because devices are of no fixed functions, it is very important for device makers to understand the requirements of end applications and to seek for cross-industry cooperation opportunities. For example, in-car OBD (on-board diagnosis) devices can be used to collect related driving information for the analysis of drivers behavior. The device can have more add-on values if they are provided to insurers, so that they can design insurance policies with more flexibility based on customers driving patterns. This is an example to show why the design concept of IoT devices can not only be purely hardware, because their true value lies in effective business models, and needs to leverage through crosscooperation. 3

4 4 TRACKER/INTERVIEW Thursday June 2, 216 Gigabyte to push Xtreme Gaming concept for graphics card business Joseph Tsai, DIGITIMES, Taipei Despite having been operating in the graphics card market for many years, Gigabyte Technology has never stopped evolving. Not willing to stay only as a good-quality graphics card maker, Gigabyte has developed its Xtreme Gaming-series, looking to cultivate deeper relationships in the gaming market. Digitimes recently sat down with Eddie Lin, Gigabyte s Sales and Marketing Associate Vice President of Gaming Product Business Unit to discuss the development of the Xtreme Gaming-series and its concepts. Gigabyte created Xtreme Gaming, a product line consisting of IT hardware such as graphics cards and mice that are designed specifically for gaming purposes, at the end of 215. However, Xtreme Gaming is not only a hardware series, it is also a new business concept that Gigabyte has adopted for its future operations. Prior to the release of Xtreme Gaming, Gigabyte s strategy for the graphics card business was stable, but still lacked a strong direction. Although its brand has a reputation for good quality and good after-sales service, the company s reach in the gaming community was still rather weak. Aiming to enhance its product lines and strengthen its connection with gaming communities, Gigabyte created the Xtreme Gaming concept and will target five major directions to push and promote. The first direction is to extend Gigabyte s product lines with the latest technologies and innovations, the second is to recruit talent from the gaming market to gain better understanding of the ecosystem, the third is to aggressively participate in gaming communities, the fourth is to form cross-industry cooperation with other companies to provide gamers with next-generation gaming experiences, and fifth is to find partners to jointly develop new technologies to support gaming. For the first direction, Gigabyte expects Xtreme Gaming to be an extension of its existing product lines. As for what kind of graphics cards are qualified to carry the Xtreme Gaming name, Lin pointed out that it is not necessarily those with the highest prices or top-end specifications. The Xtreme Gaming brand is meant for graphics cards that are designed to be the best in their category. Since some gamers are already able to play their favorite games with midrange graphics cards, Xtreme Gaming mid-range cards with Gigabyte s latest technologies and designs will allow these gamers to have competitive gaming experiences against products offered by other competitors. In addition to providing what gamers want from their hardware, another major purpose for the Xtreme Gaming brand is to bring nextgeneration gaming experiences to its customers with cooperation from Gigabyte s partners. Currently, the newest gaming experience on the market is virtual reality (VR). Xtreme Gaming s mission in the VR market is to optimize the user s gaming experience including resolving hardware/software compatibility issues and minimizing dizziness when wearing a VR headset via hardware/software adjustments. Gigabyte is aggressively looking to recruit all kinds of talent from the gaming industry. Gigabyte has recruited several retired e-sport gamers as well as many gaming enthusiasts to join its family. Through them, Gigabyte is able to become more involved in the gaming market, as the company needs talent that is able to talk in the language of gamers and understand the market s ecosystem. Gigabyte has also been forming partnerships with e-sport teams; however, instead of only investing money in advertisements, the company is more interested in receiving their feedback on product usage. Gigabyte s investments in e-sport teams cross international boundaries. Eddie Lin, Associate VP of Sales and Marketing of Gigabyte s Gaming Product Business Unit The investment model helps Gigabyte understand gamers usage habits and needs in different regions. This feedback greatly benefits Gigabyte in improving its products and technologies for different games and different consumers. The cooperation with e-sport teams also allows Gigabyte to further connect with gaming communities in different regions to tighten its relationships. Gigabyte has found that gamers in different countries have interests in different games, and it has to make improvements on a game-bygame basis in order to satisfy demand from different regions. In addition to partnerships with companies, Gigabyte is also engaging with gamers to help guide it and its partners direction on what technologies to develop. Feedback from gamers will become important guidance for Gigabyte to improve or to create new technologies. Gigabyte expects Computex 216 to be a great platform for finding crossindustry partnership opportunities. In addition to its in-house developed technologies, Gigabyte is also open to ideas, and hopes to find partners with thoughts on the development of new gaming experiences. DIGITIMES Research: China Smartphone AP Tracker 1Q 216 China smartphone AP shipments Introduction 1Q16 review According to Digitimes Research, first-quarter 216 demand for smartphone application processors (AP) in China was weak, as manufacturers reduced production during the Lunar New Year holidays and some customers had already stocked up enough inventories in the previous quarter. First-quarter 216 smartphone AP shipments in China were slow with a sequential decrease of 16.9%, reaching million units. However, a significantly low volume recorded in first-quarter 215 during which Spreadtrum had performed poorly means an on-year increase of 28.7% in overall shipments of smartphone APs in China in firstquarter 216. Taiwan-based MediaTek showed an on-quarter shipment decrease of 8.8% during the first-quarter 216 low season. China-based Spreadtrum was heavily impacted by the Lunar New Year holidays as most of its orders are from domestic clients, and its firstquarter 216 shipments showed a sequential decrease of 29.4%. In firstquarter 216, MediaTek saw its share in China s smartphone AP market return to 46%. Qualcomm, which sees a high percentage of orders coming from markets other than China, was less affected by the low season in China. Qualcomm s worldwide shipments showed an on-quarter decrease of 13.9% in first-quarter 216, as it continued shipments of new solutions. The US-based vendor also saw an increase by.8pp in its share of the China market on quarter in first-quarter 216. HiSilicon s mid-range Kirin 9 series saw shipments slow down a bit but shipments of Kirin 95 continued to be strong. Although the firm saw overall shipments fall by 16.7% on quarter, its China market share reached 9.3%, up.1pp sequentially. Leadcore s shipments dropped 66.7% Two major factors affected China smartphone AP shipments in the first sequentially as its main customer, Xiaomi, saw some of its devices nearing the end of their product life cycles. According to Digitimes Research, smartphone inventory level has become low in second-quarter 216 with the launch of new products, and demand for smartphone APs in China is expected to recover with sequential shipment growth reaching 11.3%. MediaTek is expected to see an overall shipment growth of only 8.1% on quarter in the second quarter of 216, lower than the market average, as it faces tough competition in the entry-level to mid-range market segments. MediaTek s shipments to the high-end market segment will be limited despite increases in orders. Qualcomm is predicted to experience significant shipment increase in the mid-range to high-end market segments as the firm has successfully penetrated these segments with its 14nm process Snapdragon 625, to which competitors have failed to offer comparable products. Spreadtrum is expected to see second-quarter 216 shipments grow by 16.7% sequentially although the firm faces serious delays of almost two quarters in delivering its entry-level 4G solution using the 16nm process. But shipments of its super entrylevel SC9832 continue to be strong, according to Digitimes Research. HiSilicon officially launched its mid-range Kirin 65 series priced less than CNY1,/unit (US$153/ unit), and this is expected to boost the firm s shipments because reviews of the end device, Huawei P9, which runs on Kirin 65, have been positive. The positive reviews will also shore up Huawei s profits. In second-quarter 216, shipments of Huawei products using HiSilicon chips are expected to show an on-quarter growth of 12%. Key factors affecting China smartphone AP shipments Factor Item Analysis quarter of 216. Market effects: Key factors affecting China smartphone AP shipments in 1Q16 Influence on shipments Consumer China market showing slow demand due to Lunar Market end New Year holidays. forces End product Clients already built up inventories in the previous firms quarter; demand was falling in the market. Spreadtrum New products failed to offset decreases in shipments of existing products; market demand slowed down. MediaTek Affected by the low season. Qualcomm Affected by the low season and strong competition in the entry-level market. Chipmakers New high-end solution shipments increased but HiSilicon failed to have products for the entry-level to mid-range segments. Leadcore Demand fell rapidly as Xiaomi neared EOL. Note: The more stars, the higher the influence. indicates negative influence, indicates positive influence. The long Lunar New Year holidays causing demand to be weak for all markets. Chip vendor status: MediaTek saw shipments decrease of 8.8% sequentially due to seasonal factors. Spreadtrum, which depends heavily on the domestic orders, saw shipments fall significantly. Qualcomm saw entry-level solution shipments fall significantly and although the firm s shipments to the mid-range to high-end market segments grew, its overall shipments decreased due to the weak season. HiSilicon saw shipments of highend products increase but not for entry-level to mid-range shipments. Leadcore saw shipments decrease significantly as the product life cycles of Xiaomi s devices were coming to an end. Two major factors affected China Key factors affecting China smartphone AP shipments in 2Q16 Factor Item Analysis Influence on shipments Consumer end New products attracting consumers. Market forces Chipmakers End product firms Spreadtrum MediaTek Qualcomm HiSilicon Need to replenish inventories and increase orders to meet demand for the new products. Serious delay in 16nm solution but demand for entry-level 4G solution continues to increase. Low inventory levels at the customers help orders rebound but faces strong competition. Strong shipments for its 8 and 6 mid-range to high-end solutions. Steady shipment growth of end-market products using Kirin 65 and Kirin 96. Note: The more stars, the higher the influence. indicates negative influence, indicates positive influence. Shipment breakdown Smartphone/Tablet share of AP market Demand for smartphone APs in China fell more significantly than the demand fall for tablet APs in firstquarter 216. Smartphones share of the China AP market came to 87.4%. Tablet AP demand was also affected by the low season and the Lunar New Year holidays, but the decrease was not as significant as smartphone APs with its share reaching 12.6%, showing an onquarter increase of.4pp. Demand for smartphone AP in Smartphone AP shipments in China China-based customers stocked up inventories early and due to the traditional low season, demand for China is expected to revive in secondquarter 216 meanwhile the tablet market continues to dwindle. Hence, smartphone AP market share is expected to increase by 1% on quarter reaching 88.4%. The dwindling of the tablet market causes demand for tablet AP to be weak hence market share is expected to fall by 1% on quarter in secondquarter 216. Compared to the season factors that cause the smartphone market shipments to rise and fall, the tablet market has been in the trough for a while. China AP shipments by application, -2Q16 (m units) smartphone AP shipments in the second quarter of 216. Market effects: New products and the need to replenish inventories will revive demand for key components such as chips. Chip vendor status: MediaTek to see shipments rebound but faces strong competition. Spreadtrum has trouble beginning mass production of its 16nm solution but shipments of its entry-level SC983X continue to increase. Qualcomm faces tough competition in the entry-level market with shipments falling significantly but its foothold in the mid-range to high-end market segments remains strong. The firm s overall shipments are expected to be grow. HiSilicon continues to see stable increase of shipments for its midrange to high-end solutions. 1Q16(e) 2Q16(f) Smartphone AP Tablet AP key components was weak in the first quarter of 216 causing the overall shipments of smartphone APs in Chian to fall by 16.9% on quarter. Among the three top players, Spreadtrum showed the worst decrease of almost 3. Qualcomm saw an on-quarter shipment decrease of 13.9%, while MediaTek s onquarter shipment decrease came to 8.8%. Annual shipments grew consecutively for three years mainly due to the fact that Spreadtrum s shipments have been showing on-year growths. Second-quarter 216 demand Shipments by supplier The launch of mid-range P1 gave MediaTek a smaller decrease of shipments in first-quarter 216 than its competitors. Hence the firm s market share increased by 4.1pp on quarter, reaching 46%. Qualcomm s new mid-range to high-end products continued to be favored by the market, and its market share increased to 23% in first-quarter 216. Spreadtrum lacks a diversified product portfolio and was more Shipments by supplier, -2Q16 (m units) for smartphone AP in China is expected to recover as downstream firms replenish inventories and new products are introduced by chipmakers and end-market firms. The two factors will drive secondquarter 216 shipments to grow 11.3% sequenially. The top-three smartphone AP firms are expected to see shipments increase in second-quarter 216 due to seasonal factors but MediaTek is expected to see a smaller shipment growth compared to the other two firms due to serious competition. China smartphone AP shipments, -2Q16 (m units) Q16(e) 2Q16(f) Shipments Q/Q -18.7% % 17.4% -16.9% 11.3% Y/Y 14.7% 18.8% 19.4% % 22.4% affected by seasonal factors, resulting in the firm seeing steeper drops in shipments than its competitors. The firm s market share fell by 3.1pp on quarter. HiSilicon s market share increased.1pp sequentially. Its shipment to the high-end market segment grew even though its overall shipments decreased. The firm s first-quarter shipment decrease is smaller compared to MediaTek s and Spreadtrum s. 1Q16(e) 2Q16(f) Intel Samsung Marvell NVIDIA Leadcore Hisilicon Spreadtrum Qualcomm Mediatek MediaTek is expected to see second-quarter 216 shipment growth a bit smaller compared to other firms. Its market share is expected to fall by 1.pp on quarter to reach 44.7%. Qualcomm has launched its new mid-range solution and continues to be favored by the market, which will send its shipments growing in secondquarter 216. The firm s market share is expected to increase to 23.3%. Despite a lack of a diversified product portfolio and a delay in delivering its 16nm, Spreadtrum, using price competitiveness, continues to be strong in the entry-level market. The firm s market share will increase 1pp sequentially to reach 18.7%. HiSilicon launched its new midrange solution and enhanced its highend solution in the first quarter of 216. It has seen steady shipment growth. However, only Huawei uses HiSilicon chips and the firm s shipment growth are similar to the market average. Continued on page 5...

5 TRACKER Thursday June 2, Continued from page 4 The market share of Cortex-A53 architecture is expected to show a 1.3% onquarter decrease due to the launch of other high-end architectures such as Kryo and Cortex-A72 in second-quarter 216. Shipment share by supplier, -2Q Supplier analysis Intel Samsung Marvell NVIDIA Leadcore Hisilicon Spreadtrum Qualcomm Mediatek The market share of entrylevel Cortex-A7 architecture is expected to increase 2pp on quarter due to the price competition between Spreadtrum and MediaTek. Due to the industry s shift towards 64-bit, the market share of %.5% 5.3% 4.8% 17.2% 23.4% 46.3%.4%.4% 2..4% 5.7% 5.3% % 44.1% 1.4%.7% 3.6% 8.7% 19.5% %.5% 1.2%.3% 3.7% 9.2% 2.9% 22.2% 41.9% 1Q16(e).6% 1.5%.4% 1.5% 9.3% 17.8% Q16(f).7% 1.7% 1..7% 9.3% 18.7% 23.3% 44.7% Shipments by architecture Cortext-A53 architecture s market share increased to 59% in the first quarter of 216 as major chipmakers continued to switch to the platform. Although Cortex-A7 is quite old, the client base is still quite large due to its low cost. Its market share increased 1pp onquarter to 32% in first-quarter 216. The market share of Cortex-A15 and Cortex-A17 in the first quarter of 216 was only 1% due to the impact from the industry s shift towards 64-bit. Mid-range to high-end CortexA72 s market share increased.5pp on quarter in first-quarter 216 due to continuous shipments of related products by Qualcomm and MediaTek. Shipment share by architecture, -2Q x86 Cortex-A5 7. Cortex-A7 32. Cortex-A9 9.5% Scorpion.3% Krait 1.7% Cortex-A15/A % Cortex-A % Cortex-A57/A % % % % % 2..1%.8% % 3.9% 1Q16(e) 2Q16(f).6%.8% 1.5% %.3% 1..3% % 4.5% 6. Cortex-A53 architecture, and its shipment share continued to increase to 84%. Cortex-A72 shipment share reached 1% due to X2 and X25 shipments. Shipment share of Cortex-A7 continued to account for 13.5% and it was mainly used in 3G solution and some 4G products. Shipment share of Cortex-A9 fell by 1pp on quarter while shipment share of Cortex-A15 fell by.5pp on quarter due to the lack of new orders. The launch of its new entry-level to mid-range products in secondquarter 216 increases the product share of Cortex-A53 by.5pp on q u a r t e r a m o n g t o t a l M e d i a Te k shipments. Shipments of X2 and X25 have been strong as customers begin to favor the products, and the share of Cortex-A72 is expected to increase by 1pp on quarter. Although there are no new products that use Cortex-A7 and new 4G solutions have begun to adopt Cortex-A53, low-price solutions continue to use this architecture. Its share will remain at 12.5% in secondquarter 216. Except for MT6737, all MediaTek products support Cat.6 in first-half 216. The X2 and X25 are basically the same type of chip with different physicality and clock rate. The highest clock rate for X25 is 2.5GHz and for X2 it is 2.2GHz. Both products are based on TSMC s 2nm process and were officially launched at the end of first-quarter 216. The X3 is expected to be launched at the end of 216 and will be the earliest product made from TSMC s 1nm process but related end-market devices will not be announced until 217. In 216, MediaTek focuses on X2 and X25 for high-end market segments. The two products only differ in physicality and clock rate due to difference in tolerance; other MediaTek MediaTek saw first-quarter 216 shipments decrease 8.8% sequentially mainly due to seasonality. The firm s shipments of mid-range to high-end solutions were also weaker than expected. The firm did not introduce high-end products to support support Cat.6 to compete with Qualcomm, which is partly blamed for the firm s failure to continue a long spell of sequential shipment growth. M e d i a Te k s f i r s t - q u a r t e r 216 shipments showed an onyear increase of 27.8% due to the launch of new products that immediately captured market share. MediaTek is expected to see shipments grow by 8.1% on quarter in second quarter of 216 due to downstream customers replenishing inventories and the launch of new products. Shipments of high-end X2, X25, and mid-range P1 continue to increase pushing the firm s overall shipment growth but strong competition from Qualcomm and Spreadtrum continues to limit the magnitude of the firm s shipment growth. MediaTek is expected to see shipment growth of 24.1% on year due to the expansion of the market and the adjustments made in its product mix. Domestic demand in China and demand in emerging markets continue to grow, gifting MediaTek with order increases. By baseband type S h i p m e n t s h a r e o f LT E solutions among total MediaTek shipments reached 81.1% in MediaTek smartphone AP shipments, -2Q16 (m units) Q16(e) 2Q16(f) % 11.3% 16.7% 7.9% -8.8% 8.1% Y/Y % 6.3% 27.8% 24.1% MediaTek shipment share by baseband type, -2Q LTE CDMA EDGE TDSCDMA WCDMA 41.4% 5.2% 14.4% % 4.1% 13.1% % 3.2% 11.8% 2.6% 21.6% 69.1% 1.8% 1 1.6% 17.5% 1Q16(e) 77.9%.7% 4.3%.9% 16.2% 2Q16(f) 82..7% 3.1% 14. first-quarter 216 as 3G solution shipments continued to fall. Shipment share of WCDMA in first-quarter 216 accounted for 13% of total MediaTek shipments. End-market WCDMA products have been using older solutions, and there has been strong competition from Spreadtrum s low-price solutions. WCDMA s share of total MediaTek shipments continued falling. The LTE solution products share of MediaTek shipments is Q16(f) % 2.7% functions are exactly the same. The X2 and X25 support the highest 25M-pixel cameras, 2K resolution screens, and 4K video/ audio codecs. Currently, Meizu and LeTV use the two solutions and shipments of mobile devices running on them have begun. In 216, MediaTek focuses on P1 for the mid-range market with 8-core Cortex-A53. The core is based on TSMC s 28nm process. P1 supports camera modules up to 16MP and communication standard up to LTE Cat.6. P1 is the mainstream and compared with X2 and X25, the product is favored by more customers. Currently in the China market, major firms such as Lenovo, Gionee, Meizu, TCL, OPPO, and ZTE and many other second-tier firms have adopted or plan to adopt P1 for their products. Qualcomm Qualcomm had a comprehensive product line in first-quarter 216 with competitive mid-range to high-end solutions. But due to the significant shipment decrease to the entry-level segment, the firm s overall shipments decreased 13.9% sequentially. Qualcomm s first-quarter 216 shipments saw an on-year growth of 26.5% as the firm had a stronger product portfolio compared to 215. Shipments continue to be strong 5 Q/Q 1 Shipments Q/Q Y/Y 6 Shipments 2 1Q16(e) % 26.5% % % -3.4% % 31.8% % 32.4% 4 1 Qualcomm smartphone AP shipments, -2Q16 (m units) -4 CortexA15/A17 is expected to fall to.3% in second-quarter 216. The market share of Cortex-A72 architecture is likely to increase 1.5pp on quarter due to continuous shipments of new products from Qualcomm and MediaTek. f o r Q u a l c o m m s h i g h - e n d 8 2 solution in second-quarter 216, and the firm has launched mid-range 14nm product, pushing shipment growth to 12.9% in second-quarter 216. Qualcomm s 216 product line is more competitive than the one in 215 and although the firm does not offer many solutions for the entrylevel market, its overall shipments are expected to have an on-year increase of 2.7% in second-quarter 216 due to increasing shipments of mid-range to high-end solutions. By baseband type Shipment share of LTE products among total Qualcomm shipments has been growing steadily. Their share of overall Qualcomm shipments reached 96% in first-quarter 216. Other pure 3G solutions introduced by Qualcomm only accounted for 4% and the firm does not plan to introduce any more new products for the segment. Qualcomm s second-quarter 216 shipments are mostly LTE solutions with their share reaching 96.5%. Even though there is still demand from the 3G market, Qualcomm plans to exit the 3G market due to concerns o v e r p r o f i t a b i l i t y, a s t h e p r i c e competition between MediaTek and Spreadtrum has significantly shrank the profit margin for the segment. Therefore, 3G solution shipments will only account for 3.5% of total shipments in second-quarter 216. expected to reach 85% in secondquarter 216 due to their strong penetration in the entry-level market. Demand for WCDMA solutions continue to be stable in the emerging markets such as India, and the products share fell only a bit in second-quarter 216 to 11%. By architecture MediaTek s new products launched in the first quarter of 216 were mainly based on Continued on bottom of page... 5

6 6 PRODUCT NEWS Thursday June 2, 216 AVEXIR announces new product lineup AVEXIR Technologies Corp., a global memory brand of breathing LED & plasma tube technology products, has announced new products at 216 Computex Taipei. AVEXIR had officially expanded its product line to SSD and launched the world first LED SSD: S1 series SSD last year. At 216 Computex Taipei, AVEIXR introduced a new SSD, M1 series SSD. The target audience of M1 series SSD is totally different from those of S1 series SSD. It aims at business people and consumers who need portable memory disks. M1 series SSD is a dual interface SSD, with SATA III and the newest USB 3.1/ TYPE-C support. By means of USB 3.1 high-efficient transmission, external portable hard drive is no longer subject to transmission interface influence. Also, it can deliver SATA III read/write performance: the read speed up to 54MB/s, and the write speed up to 45MB/s. It will be available in 12GB /24GB/ 48GB capacities. As to the product appearance, it is only 7mm thick and with robust metal material housing. In addition, it he. AVEXIR also showcases its Raiden PCIe M.2 SSD series. AVEXIR has been modifying, polishing and redesigning it after its conceptual model was displayed at Computex last year. Raiden PCIe M.2 SSD supports M.2 AHCI SSD with highspeed PCI-Express interface, and shares bandwidth with PCIe Gen 3 x4, with transmission speeds theoretically reaching up to 2MB/ s. Exchangeable M.2 design enables users to randomly choose the speed and capacity they want. Also, it supports 128GB-1TB M.2 SSD with AHCI interface, which allows some old motherboard chips set can have free-driver to enjoy high-speed SSD performance. Moreover, Raiden PCIe M.2 SSD is with AVEXIR s technology of plasma tubes. And there is the new member of the Raiden Family: Green Tesla. AVEXIR s Raiden series products, including Raiden series and Red Tesla, have become the most popular and best-selling of AVEXIR memory products. However, blue and red plasma tube lighting effect cannot meet everyone s needs. Therefore, AVEXIR has privately showcased green plasma tube lighting effect in CaseMod builds around the world. AVEXIR is now openly showcasing Green Tesla at Computex 216. Due to the trend of switching to DDR4, Green Tesla will only release the DDR4 AVEXIR announces M1 series SSD, Raiden PCIe M.2 SSD and Green Tesla version and start with 2666MHZ dual channel 16GB capacity. Apart from showcasing its latest products, AVEXIR is also arranging activities and special events this year. Also, AVEXIR has 1 CASEMODs for visitors to closely experience them. AVEXIR is at Booth No. I818. WiMe five-in-one multi-function car starter FlashJumper To address diverse needs of outdoor life and provide leisure activity gear and equipment to bring users fresh experience and convenience, WiMe has launched in 216 a whole new car starter, FlashJumper, a five-in-one multifunction device that is not only fun but also useful in emergencies. FlashJumper combines a car starter, mobile power bank, LED warning tripod, ultra-high brightness flashlight and three outdoor white-light lamps. The design integrates these common outdoor tools in a 32 x 7.8 cm package for easy assembly and portability. FlashJumper s innovative and userfriendly design meets all user needs by providing emergency assistance in the case of traffic accidents, convenient light sources during outdoor activities and safety warning when the car stops at roadside. The product is patent pending in the invention, utility and design categories in the US and China. Unexpected circumstances may arise when traveling outdoors, such as the car battery suddenly running out. FlashJumper provides a capacity of 1, ma with a cable to bring the battery back to life and the trip back to fun. Furthermore, people nowadays usually bring electronic d e v i c e s, including smartphones, cameras and WiMe FlashJumper tablets, to their outdoor events. FlashJumper enables plug-and-play anywhere free from the limitation by jumper cables and electric sockets. Combining a warning tripod with 36 high-brightness red LED, FlashJumper protects users in a vehicle stopped in the dark from accidents, ensuring traffic safety by warning other vehicles on the road and preventing collision with approaching cars. FlashJumper s ultra-high brightness flashlight, equipped with a 5W LED spotlight with 35 lumens, can light up a dark campsite and can easily be seen from a distance. FlashJumper is detachable into three 2W diffuse lights to meet the use scenario for multiple light sources on a camping trip. For latest information on FlashJumper, please visit Inquiries relating to the product can be directed to sales@wimegroup.com.tw. Conexant AudioSmart enhances natural workplace collaboration, interaction with intelligent personal assistants Audio and imaging solution provider Conexant Systems is highlighting its AudioSmart 3. product line during Computex. These highly-efficient, powerful silicon and software solutions redefine the audio experience for a range of consumer electronics including tablets and PCs. Today, Conexant is showcasing the world s first PC to receive Microsoft Skype for business certification as a group speakerphone, along with their highperformance, four-microphone farfield voice input pre-processing technology and context-aware control automation software. Conexant has partnered with a top computer maker to create the world s first PC certified by Microsoft as a Skype for Business Group Speakerphone. It supports and extends the Microsoft Skype for Business Group Speakerphone experience within a single, fullyintegrated productivity platform. The system features both hardware and software from Conexant, culminating in a portable notebook that also replaces a desk-based speakerphone by enabling loud, clear telephone calls directly from the PC itself. The level of performance achieved by this platform addresses the fact that Skype audio problems often hinder communication and put a damper on productivity. Similar challenges arise when attempting to communicate with intelligent personal assistants. It is frustrating when Microsoft Cortana can t understand the user or produce the results the user needs. With Conexant AudioSmart 3. technology and design services, Conexant s voice processing algorithms allow users to speak naturally and be heard as well as better hear what others are saying. With advanced de-reverb, superior noise reduction (on both sides of the conversation), integrated smart amplifier technology, and automatic speech recognition (ASR) hit rates, AudioSmart 3. makes VoIP communication more natural, and hands-free control less of a burden even in far-field conditions. Conexant has also created a suite of technologies that intelligently sense context, leveraging information about how a device is being used to automatically optimize the end-user experience. The ability to discern what a device is being used to do under particular conditions allows Conexant technology to adapt and ensure the audio experience is right. For example, audio settings normally found buried deep in a control panel application are automatically optimized, with no user input required. Without having to know where that control panel is found much less how to adjust all the settings found there users of Conexant technology receive personalized audio processing. The result is louder, more intelligible playback for all use-cases, and more accurate responses from Cortana under the most challenging conditions. During Computex, Conexant is at suite #12-1F at the Grand Hyatt Taipei.

7 Thursday June 2, 216 PRODUCT NEWS 7 CviLux launches new generation of Apple Homekit devices and Opro9 SmartDiaper CviLux (Opro9 brand) has taken the lead to launch Apple Homekit devices in Taiwan. The first series will be smart outlet and light bulb, and more will come in the future. CviLux has built a foundation to provide iphone flash drive with encryption function for data protection, so we got approval from Apple to develop and produce Homekit devices based on encryption and wireless technologies. The characteristics of Apple Homekit devices are: one MFi approved app, operating through different brands of Apple Homekit devices; OTA (over the air) update on the software and long hardware life; Apple-Bonjour Sponsored content In a quest to differentiate their businesses, leading semiconductor companies are focusing on developing technologies that enable data-driven applications such as power reductions, sensor capabilities, mobile smart device features, and Internet connectivity. This combination of technologies is used to create Internet of Things (IoT) devices it is one of the most disruptive technology breakthroughs for the industry. In terms of scale, while mobile phones consume 1-2 billion chips every year, IoT devices are projected to consume over 1 billion chips per year. This booming sector is fast becoming the driver for growth in the electronics and semiconductor industries. IoT is enabling another industrial revolution by fundamentally changing the business model for various industries. The model for durable goods OEMs is changing from a transactional model (sell and forget) to a service model (sell and continue to serve) as enabled by IoT technologies. To stay competitive in this changing landscape, companies are collaborating with leading solution providers in order to enable and deliver this business transformation through IoT. To further explore industrial transformation through IoT technologies, Digitimes recently interviewed Hans Rempel, Exosite s CEO and co-founder, to discuss the company s vision, how it is helping organizations IoT-enable their business, and the standard meets zero configuration for end user s friendly setting to Home/Room/Zone/Scenario easily; remote control by Siri voice command, both indoors and outdoors; highly encryption function to protect user privacy. And Cvilux develops its own app, software and cloud service, which creates product differentiation and competitive advantages. Cvilux-Opro9 has launched SmartDiaper. Infants and children generally wear one diaper for a long period of time which can cause diaper rash and skin infections. Severe infections can even jeopardize the lives of infants. The CviLux-Opro9 Smart Diaper sensor, manufactured using SGS Hans Rempel, Exosite s CEO and co-founder outlook for the IoT market. Using Data Analytics, IoT Enables Enterprises to Successfully Compete Exosite provides a reliable, secure, and scalable IoT software platform that enables organizations to pursue new business opportunities through connected devices. Exosite customers include leading companies in industrial automation, smart home automation, safety surveillance, wearable and industrial energy management sectors. Global brands use Exosite IoT solutions to strategically differentiate their products and services from their competitors. When Exosite was founded in 29, the Internet of Things was not yet even a term, Rempel said. Although technologies have advanced, the transformative nature of IoT remains the same today and is enabling a revolution in how companies do business. Some key trends contributed to this IoT revolution. First, massive amounts of information have been collected due to the lower cost and availability of networking technologies, connectivity, and certified-safe materials, doesn t even touch the child s skin directly, but only needs to be put on the outside of the diaper. When the infant urinates, temperature and moisture information will automatically be sent to the cellphones and tablets of parents, and will remind parents it is time to change the child s diaper using sound, vibration, and graphical means. The Opro9 SmartDiaper app, free on the App store, provides an easy-to-use, beautifully designed, interface to help new parents review and track their child s habits. The app provides statistical information, including records of daily and weekly urination times, average number of times sensors. This mountain of data has created a strong need to leverage the power of data analytics. Second, Big Data analytic tools have made it possible to derive new insights from the data and to visualize customer trends. These insights are used to build innovative applications that provide real-time decision making guidance, and which leverage IoTenabled cloud infrastructure and connected devices. Rempel said, IoT is not only the technologies itself, but the vehicle upon which business transformation is delivered. By adding connectivity to devices, applying data analytics, and enabling new product designs, companies realize a more streamlined manufacturing process and sustainable product development cycle. In businessto-business IoT applications, the intelligent data analytics provided by Exosite s cloud platform also helps to improve process and workflow of enterprises. And, most of all, IoT-enabled products help companies enhance their user experience, forming an expectation of reliability and visibility that creates new business value. urinated, urination frequency and so on, to allow parents to use the app records to make appropriate health-related decisions. If parents agree to allow upload of their child s data to Cvilux s secure cloud, then the company s cloud-based data analysis programs, combined with clinical research from medical professionals, can provide parents with even more accurate health care data about the child s health. Rempel pointed out that traditional manufacturers are one of the best beneficiaries of IoT. A smoke detector is a great example almost each family has this kind of sensor device installed in their house. With a traditional unconnected product, it is difficult for the smoke detector manufacturer, and also the homeowner, to understand whether the smoke detector is functioning properly. A properly functioning smoke detector fulfills the key value proposition of the device that it alerts the occupants in the very rare occurrence there is a fire. This weak link is improved by applying IoT solutions. By leveraging the Exosite IoT platform, it is easy to build a connected smoke detector that can communicate pro-actively if there is a problem (e.g. low battery), so that the device is ready for service when needed. According to Rempel, IoT has redefined value propositions and created innovative new ways for companies to do business. By leveraging data analytics on their product data, manufacturers can gain insights into how the product is being used, and can turn those insights into new value-added services for the end customer. For example, a pump manufacturer can change their value proposition of selling a pump with certain specifications into selling the assurance of reliable fluid flow and pressure. The pump maker sees IoT technology as a way to help ensure the pumps are Future development plans include working in cooperation with manufacturers of diapers and baby supplies to provide targeted in-app advertising and e-commerce options, to help parents of newborns receive timely information on relevant, high-quality baby-care products. During computex, CviLux is at Nangang Exhibition Center (Hall- 4, M32) from May 31 to June 4, 216. Exosite accelerates innovation and business transformation through IoT solutions Legacy Business, New Value Proposition: How IoT Transforms Business Apple Homekit devices and Opro9 SmartDiaper performing at peak efficiency. Through the use of data analytics, manufacturers can provide an improved maintenance service and build a more reliable fluid supply system. By providing the pump product as a service, a one-time payment of equipment sales can be converted into monthly utility payments. This transactional sale migration to a service sale is revolutionizing the value chain of the entire business engagement process. IoT is not just a matter of connecting things it is a matter of transforming business through the value that connectivity brings. Exosite solutions help leading companies focus on the value their product is providing to their end customers by helping define and deploy their connected product strategies, and by supplying bestin-class IoT software to enable and sustain the deployments. By working in conjunction with OEMs and their solution partners, Exosite s goal is to accelerate and de-risk the exciting process of business transformation through IoT technologies. Some of Exosite s customers are manufacturers who have done business for more than 1 years they are leaders in their sectors. Exosite s software and team are leaders in IoT technologies. By combining these two experts, manufacturers can shorten time to market, set new standards of excellence in their industries and maintain stronger relationship with customers. Rempel emphasized, If customers want their products connected to the cloud, Exosite is the one to provide the best cloud solution. Elo large-format 7-inch TouchPro catches your eye Elo, a leading global supplier of commercial touchscreen solutions, has introduced large format TouchPro Pro-M projected capacitive (PCAP) touchscreens. The latest Pro-M series will catch the eyes of today s consumers. This series includes the standard 32-inch, 42-inch, 46- inch and 55-inch touchscreens with customized larger screens, and together with Elo s existing Pro-G series, covers multi-touch screen sizes from 7.-inch up to 7- inch. These larger screens are designed for more flexible commercial usage and are customizable to meet the needs of almost any application or environment. Elo s TouchPro family of touchscreens includes the Pro-G touchscreens, which offer a highly durable glassglass construction in sizes up to 27-inch while the Pro-M series is designed with leading edge mesh construction with sizes up to 7-inch. With the Pro-G series, touchscreens can already be tuned to provide multi-touch performance in robust, high durability applications with up to an 8mm total touch-through glass capability. The Pro-M series uses an advanced metal mesh solution which has a lighter weight construction to balance the larger sizes and uses leading low resistance technology. This construction allows highly flexible screen designs that will meet most application requirements and boasts industry leading optical performance. The Pro-M touchscreens can also be customized to provide support for up to a 5-point, multi-touch solution. Both solutions offer excellent optics, fast touch response and high durability with industrial grade reliability. With more than 4 years of engineering expertise, Elo provides designers various custom options to meet their specific needs with a range of cover glass choices. Glass treatments including tempered, chemically strengthened, heat strengthened, anti-glare, or thicker cover glass for vandal-proof applications are all available for customization. In addition, Elo drivers offer enhanced capabilities including touch on release, touch exclusion zones, touch count restrictions, edge acceleration, beep on touch and a real-time application programming interface. While already supporting multiple operating systems including Apple Mac OS, Google Android, Linux, and Microsoft Windows, Elo design engineers can also custom craft driver software to your specifications. The large format PCAP screens offer our clients so much more flexibility, said Niklas Fallgren, Elo s vice president of the OEM Business Unit. The size and customization options and construction choices of our TouchPro series means we can custom craft products that meet the unique requirements of OEM designers with the quality, technical expertise and design leadership that the industry has come to rely on from Elo. Elo will demonstrate the Pro-M and other Elo next generation technology products in Booth K63 at the MRT Nangang Exhibition Center Station for Computex in Taipei on May 31-June 4, 216. About Elo Elo Touch Solutions is a global leader in fully integrated touch solutions used by embedded technology designers across multiple touch markets. Elo has crafted best-in-class touchscreen solutions used to realize more than 2 million inspiring products in over 8 countries. The Elo experience has consistently stood for quality, reliability and innovation for more than 4 years. Elo intellectual property is protected by global patent, trademark and design registrations. Learn more at EloTouch.com GIGABYTE unveils XTREME GAMING at Computex 216 GIGABYTE, a manufacturer of motherboards and graphics cards, is showcasing its emerging gaming series, XTREME GAMING, which is created for providing the gaming hardware and gears that meet the demands of gaming enthusiasts. XTREME GAMING will also showcase its innovation through the VR experience at this year s gamingcentric booth highlighted by the color scheme of XTREME GAMING in black and orange. GTX 18 to take center stage GIGABYTE is going to showcase the just-released GTX 18 G1 GAMING graphics card, as well as to reveal its XTREME GAMING edition card for the first time. These flagship cards of 216 are powered by the nextgeneration Pascal GPU. The GTX 18 G1 GAMING combines the WINDFORCE 3X cooling system for heat dissipation capacity to bring out the best of Pascal. Gamers could also fully customize the lighting with the newly RGB feature. Gigabyte Xtreme Gaming series products The XTREME GAMING edition comes with brand new GIGABYTE innovative cooling technologies incorporated in the card design. The graphics card is also engineered for virtual reality with VR-friendly features to optimize VR gaming experience. Premium gaming gears on display In addition to GPU solutions, GIGABYTE has also launched a wide range of premium gaming gears in the XTREME GAMING family. XP12M Power Supply Unit Designed for high-end gaming rigs with multi-gpu configuration, the 8 PLUS Platinum certified 12W PSU is built with premium components to deliver super high efficiency and reliable operation in virtual silence for gaming needs; the fully modular management makes installation easy and tidy! XK7 Gaming Keyboard Built for responsiveness and precision control, the XK7 features gaming-grade mechanical key switches coupled with the full N-key rollover functionality; the RGB perkey backlighting provides virtually unlimited customization. XM3 Gaming Mouse Driven by the gaming-grade 64DPI optical sensor adjustable in 5 DPI increment, the XM3 delivers exceptional precision. The OMRON micro switches provide incredible responsiveness for over 2 million clicks. Backlighting emblem allows full customization to match gamers play style. The classic, streamlined design offers great ergonomics with a feel ideal for long game sessions. XH3 Gaming Headset Immerse in a true-to-life gaming environment generated by 5mm driver units with enhanced bass reproduction; the uni-directional microphone delivers clear communication with teammates. The ergonomic design coupled with RGB lighting provides maximum comfort. XC7 and XC3 Gaming PC Cases Built for gaming, the two new cases support multi-gpu configuration and various air/water-cooling setups for building a gaming machine with optimized thermal performance; their sleek profile with RGB backlighting, the brushed metal finish and the transparent side panel provide a simple yet exquisite look. Taking Computex experience to the XTREME GIGABYTE prepares a full-motion racing simulator with VR integration on site, replacing conventional 2D demonstration on flat screens. Everyone who is interested in taking a few laps on the virtual race could drop by GIGABYTE booth, put on a VR headset, and feel the thrill of a fully immersive VR gaming experience in person. Visit GIGABYTE at TWTC Hall 1, Booth D2 Come join GIGABYTE on the quest for XTREME GAMING at TWTC Hall 1, Booth D2 during the 5-day event beginning May 31 through June 4. About GIGABYTE GIGABYTE, headquartered in Taipei, Taiwan, is known as a global leading brand in the IT industry, with employees and business channels in almost every country. Founded in 1986, GIGABYTE started as a research and development team and has since taken the lead in the world's motherboard and graphics card markets. On top of Motherboards and Graphics cards, GIGABYTE further expanded its product portfolio to include PC Components, PC Peripherals, Laptops, Desktop PCs, Network Communications, Servers and Mobile Phones to serve each facet of the digital life in the home and office. Everyday GIGABYTE aims to Upgrade Your Life with innovative technology, exceptional quality, and unmatched customer service. Visit for more information.

8 8 PRODUCT NEWS Thursday June 2, 216 DTS shapes immersive premium audio experiences with four leading technologies Sponsored content With over 2 years of development in digital cinema and home theater sound technologies, DTS has been dedicated to bringing consumers premium audio experiences whether at home, in the car, on the move or in the theater. DTS technologies enable smooth and seamless enjoyment during the transition between different use scenarios. DTS has introduced stunning next generation audio solutions including Headphone:X, Play-Fi and DTS:X in the last two years. The acquisition of ibiquity Digital at the end of 215 has helped DTS secure the HD radio technology that holds a large share of the in-vehicle infotainment system market in North America. DTS is now pillared on a foundation built up of four leading technologies enabling applications of DTS technologies ranging from TV, home theaters, mobile devices, streaming services to in-vehicle systems, delivering highquality immersive audio experiences to consumers. Aaron Chen, general manager of sales at DTS Taiwan Branch Office, indicates DTS will showcase its latest achievements in its four major technologies at Computex 216 and present to visitors how these audio solutions can enhance their audio entertainment anywhere. AVR brands supporting DTS:X together hold more than 9 of the AVR market DTS:X breaks through the barrier of traditional Ultra HD(UHD) surround sound processing technology and transitions from having 5.1 and 7.1 sound channels set on one platform to adding a height channel to enable a whole new 11.1 or sound channel experience. Several Denon, Onkyo and Yamaha AVRs currently support DTS:X via firmware updates, and several more brands including Acurus, Pioneer, ARCAM, ELITE, Marantz and Pioneer will be releasing updates over the next several months. More than a dozen Blu-ray Discs with DTS:X audio have been released, with several more to be announced this year. Titles released thus far include The Big Short, Ex Machina and The Last Witch Hunter. In terms of theatrical content, there have more than 2 Hollywood and Chinese films exhibited in DTS:X audio so far, such as blockbusters Minions, The Hunger Games Mockingjay Part 2, Everest, The Martian, The Mermaid and The Monkey King 2. Several more films are expected to be released in DTS:X sound in the second half of the year. In addition, DTS is working with leading global digital cinema solution provider GDC and has installed more than 1 DTS:X theaters in the US and China. The number is expected to increase to more than 2 by the end of the year. DTS has also made significant achievements with Headphone:X since 215. High-end mobile devices from known brands including ASUS, Acer, HTC and Huawei are adding support for Headphone:X technology with the goal to bring the premium home theater audio experiences to mobile devices. For example, more than 1 models of ASUS tablets have enabled support for Headphone:X technology. In terms of headphones, the Logitech G933 and G633 gaming models embed a built-in Headphone:X chip, as do gaming headsets from Turtle Beach, Steel Series and Triton Katana. A popular music streaming platform is to announce its support for Headphone:X Chen reveals that after DTS and QQ music formed a licensing partnership in 215, another online music streaming platform popular in Taiwan, Japan and Southeast Asia has also decided to join forces with DTS, with an announcement scheduled for June. Then, consumers will only need to use a Headphone:X-enabled mobile device and select preferred audio settings on a Headphone:X app and they will be able to enjoy top-quality streaming music from the service Aaron Chen, general manager of sales at DTS Taiwan Branch Office platform with in-ear, circumaural or supra-aural headphones. When the consumer returns home, he or she can use existing Wi-Fi connection at home and get streaming music from online music streaming service providers including Spotify, Pandora, Rhapsody and Tidal through a mobile device or PC. Then, with DTS Play-Fi, the user can wirelessly stream the music to every speaker in the home and enjoy lossless playback quality, which is far superior to Bluetooth streaming. Play- Fi speakers partners include widely known brands such as Paradigm, Polk, MartinLogan, Definitive Technology and McIntosh. The Play-Fi technology enables seamless streaming across several speaker brands. Furthermore, consumers with ASUS or Acer mobile devices including built-in Play-Fi drivers can remotely control speakers to play back music. HD Radio, a recent addition to the DTS technology portfolio, comes with FM Plus, which is similar to an application program that can be installed on a mobile device to allow users to listen to flowing digital radio broadcast without consuming too much bandwidth. However, this technology is more suitable for places such as India or Mexico where wireless connection speed tends to be low. Mobile devices in Taiwan can be pre-loaded with FM Plus to enhance product appeal and boost sales in emerging countries. AIC showcases server and storage solutions, unveils global strategies for data center and cloud computing market AIC Inc., a leading player in server and storage solutions industry worldwide, will showcase the whole series of products including server boards, chassis, JBOD, all-flash-array NVMe and high-density storage server at 216 Computex Taipei (5/31~6/4/216), on the 4th floor of Nangang Exhibition Hall. Meanwhile, to demonstrate AIC s sturdy strength and developing strategies to the global data center and cloud computing demanding, AIC specially design an area of Smart Rack Series, to display 48U, 19U, and 15U racks. To echo the theme of AIC s 216 global exhibition The Innovator in Cloud Computing and Data Centers," AIC will feature a series of smart racks, which includes 48U21-inch, 25U21-inch, and 15U19-inch. AIC will live demo one rack to present the Big Data running with Hadoop based on OpenStack platform, and the application of VSaaS (video surveillance as a service). AIC provides a complete platform for cloud computing and data processes in the data center. In addition, AIC unveils a new series of all-flash-array NVMe server systems, support most NVMe drive vendors in the market and upgrade to Intel Xeon Processors E5-26 v.4 Product Family, to provide a highly dense & hybrid storage solution. In 1U and 2U form factor, but provide functions of high-speed, high-bandwidth, high-density and low latency. Support 2.5" NVMe PCIe SSD, AIC s all-flash-array NVMe series server systems, providing the perfect server environment for running applications that requires fast data delivery, such as video-on-demand broadcasting, hyper-scale computing, Big Data analytics, Hadoop, and Very Large Database (VLDB). Another important section of AIC s booth is new series of AIC s high-density and high-availability storage servers, including 1U12Bay, 4U24&6Bay, and etc. All products support up to Intel Xeon Processors E5-26 v.4 Product Family. Compact mechanical designing tool-less chassis will able to save maintenance staffs loading. All products with hotswappable HDDs and fans, including smart fans management and lowpower consumption system, will able to maintain machine at optimum status. High-Availability Server Storages include 2U24Bay and 4U24Bay, are the best solution for enterprise demanding to multi-task processing and storage. All support up to Intel Xeon Processors E5-26 v4 product family, dual nodes would provide working configuration as "active / active", and internodes communicate with 1G Ethernet via Backplane, PCIe NTB or SAS. Most of the components on AIC s high-availability AIC HA22-PH servers are totally redundant and hotswappable, which decreases or nearly eliminates downtime if a node needs to be serviced because of a failure or a scheduled maintenance time. AIC also features series of server boards, chassis and storage JBOD product lines at the booth. Global visitors & partners can find out more innovative products and furthermore, to find out AIC s solid technical strength and the future development and marketing strategy. For more product information and possible partnership, please visit AIC s booth in 216 Computex Taipei. Date: May 31-June 4, 216 Booth Number: L818, 4th Floor of Nangang Exhibition Hall1 For more information, please visit: Media contact: Jean Ko ext. 83 jean.ko@aicipc.com.tw About AIC: AIC is a leading provider of both standard OTS (off-the-shelf) and OEM/ODM server and storage solutions. With expert in-house design, manufacturing and validation capabilities, AIC s products are highly flexible and configurable to any form factor, standard or custom.