Is The Chip Market On The Rebound

Don’t let anyone fool you, the chipmarket is still not doing that well and there are a few problems to be sorted out before real money will be made.

FC Tseng, vice chairman for foundry VIS said that handset makers have too much inventory in their warehouses and the much hyped IoT market boom has not yet arrived.

In fact it is looking like 2015 will not be as good as 2014, which was pretty good at least as far as VIS was concerned.

Semiconductor demand for IoT applications will emerge, but no one has really worked out what the key drivers of IoT market growth will be, Tseng said.

Smartphones, devices such as watches, bracelets and glasses are all being identified as the popular applications when it comes to wearables and the Internet of Things.

VIS forecast that the global 2015 semiconductor market will increase 5 per cent in production value to $358 bn, while the foundry sector will grow by a larger 10 per cent on year to about S$50 bn.

VIS chairman and president Leuh Fang warned that the company has seen a low visibility of customer orders for the third quarter of 2015.

VIS reported record revenues and profits for 2014 and has been spending on capital expenditure like a mad thing in 2015.

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Will Blackberry Embrace Android?

BlackBerry Ltd’s move to embrace Android, although geared towards lifting revenue from its software and device management segment, could inadvertently give its device arm a new lease on life.

“From the standpoint of marketing, this is a great way for BlackBerry to get visibility. It really doesn’t hurt them much, and the upside is high,” said Rob Enderle, who runs technology consulting firm Enderle Group.

Enderle and other financial and tech analysts agree that the move by BlackBerry does present its own set of challenges as the company would have to support two platforms and potentially put some resources into marketing an Android device, but with little to lose most agree it comes with little downside.

“If Android has one significant weakness it is security and that’s just the thing that BlackBerry can fix, so it could play out pretty well and I am actually quite surprised that they did not try this sooner,” said Enderle, adding that BlackBerry has to deliver a compelling device in order for the gambit to work.

Reuters reported last week that BlackBerry was considering a move to test run Android on its upcoming slider device, as part of a bid to convince potential corporate and government clients that its device management system, BES12, is truly able of manage and secure not just BlackBerry devices, but also devices powered by Google’s Android, Apple’s iOS and Microsoft’s Windows operating system.

“In order for BES12 to succeed it has to be viewed by all as platform agnostic, and what better way to demonstrate that other than by doing it yourself,” said Ramon Llamas, an analyst with technology research firm IDC.

BlackBerry, which once dominated the smartphone market, has seen its market share drop to under 1 percent, as the iPhone and a slew of Android devices from Samsung have captured market share. John Chen, a turnaround expert brought in to fix its slide, is now pivoting BlackBerry to focus more on its well-regarded software and device management business.

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Is Samsung The King Of LTE?

Samsung Electronics has told the world that owns the largest number of patent rights essential for long-term evolution (LTE) technology in the world.

Writing in its official blog “Samsung Tomorrow” that it has more than 3,600 standard essential patents (SEP) for the LTE and LTE-Advanced (LTE-A) technology. That is 17 percent of all LTE-related SEPs.

We guess this means that if someone buys an LTE phone more than 17 per cent of the money which goes to buy patents should end up in Samsung’s bank account.

Samsung Electronics Digital Media & Communication Laboratory’s intellectual property application team head Lee Heung-mo said Samsung Electronics has established a solid foothold as the global leader and the first mover in the fourth-generation mobile telecom market.

“This also means that the company has become able to provide more convenience to customers by developing the latest technologies.”

The Taiwanese patent office conducted market research for the nation’s state-run National Applied Research Laboratory based on about 6,000 patent rights listed at the Patent and Trademark Office in the United States during the last two years.

LG Electronics and Qualcomm followed Samsung Electronics in second place with 14 percent of SEPs, each. Ericsson, Panasonic, Nokia and NTT DoCoMo hold the third spot with 5 percent, each.

Pantech, the nation’s third-largest handset maker which currently faces bankruptcy, held only one percent, while Korea’s state-run Electronics and Telecommunications Research Institute owned less than 1 percent, the report showed.

During the patent dispute with Apple, the U.S. International Trade Commission said Apple had infringed on Samsung Electronics’ SEPs though they had to be shared under a “fair, reasonable and non-discriminatory” principle.

Samsung Electronics said it has pushed for securing the SEPs in this sector during the last 18 years and has competed with global telecom giants including Qualcomm, Nokia and Ericsson as a relative latecomer. It said securing leadership in SEPs may change the crisis of facing patent disputes to diversifying income sources.

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Jawbone Sues Fitbit

Jawbone has filed another lawsuit against Fitbit in less than two weeks, alleging its activity tracking products infringe several of Jawbone’s patents.

The new suit, filed Wednesday in San Francisco by Jawbone parent company AliphCom, seeks unspecified damages and an injunction to block the sale of Fitbit devices such as the Flex, Charge and Surge bands.

Late last month, Jawbone filed another lawsuit, accusing Fitbit of poaching its employees and stealing trade secrets. Fitbit has said it has no knowledge of any such information in its possession.

In its latest complaint, Jawbone says it will also ask the U.S. International Trade Commission to investigate Fitbit, which could potentially lead to an import ban on Fitbit products.

Jawbone says it has hundreds of patents granted or pending, and claims that Fitbit infringes several of them. One patent describes a “general health and wellness management method and apparatus for a wellness application using data from a data-capable band.”

Another patent covers a “system for detecting, monitoring, and reporting an individual’s physiological or contextual status.”

Fitbit didn’t immediately respond to a request for comment on the latest suit.

The timing is bad for Fitbit, which is preparing to go public on the U.S. stock markets. It also faces intense competition from a number of rivals, which also include Garmin and Apple with its Apple Watch.

Both Jawbone and Fitbit make wearable bands and associated software that tracks people’s movement, exercise, sleep and heart rate.

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Can MB Challenge Tesla?

On the heels of Tesla announcing a home and commercial battery product line, Mercedes-Benz unveiled its own brand of energy storage products for those with solar systems to store surplus power.

The Mercedes-Benz energy storage plants for private use are available for order now and are expected to ship in September.

The batteries were first developed for cars, but Mercedes-Benz said the energy storage units “meet the very highest safety and quality standards” for home use.

Up to eight battery modules with an energy capacity of 2.5 kWh can be combined into an energy storage plant with a capacity of 20 kWh.

“Households with their own photovoltaic systems can thus buffer surplus solar power virtually free of any losses,” the carmaker said in a statement.

What wasn’t announced by Mercedes-Benz was information about the size of or pricing for the new batteries.

In May, Tesla announced its Powerwall batteries for home use and its Powerpack batteries for commercial use. Today, Tesla CEO Elon Musk announced his company would double the power output of the Powerwall batteries but keep their prices the same.

Tesla’s Powerwall batteries will go from having a two-kilowatt (kW) steady power output and 3.3kW peak output to a 5kW steady output and 7kW peak output, Musk said. The price of the batteries will remain the same: $3,000 for the 7kW/hour (KWh) daily cycle version and $3,500 for the 10kWh backup UPS version. Total installation cost will run around $4,000, according to Musk.

Up to nine Powerwall battery units can be daisy-chained together on a wall to provide up to 90kWh of power.

The average U.S. household uses about 20 kWh to 25 kWh of power every day, according to GTM Research.

Tesla Energy’s new commercial-grade battery is called the Powerpack, and will sell in 100kWh modules for $25,000 each. Musk said the Powerpack can scale infinitely, even powering factories and small cities.

Mercedes-Benz’s batteries, being produced by subsidiary Deutsche Accumotive, are its first industrial-scale lithium-ion units, and they’ve already been tested “on the grid,” the company said.

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Acer Shifts Focus To IoT

Acer is still churning out PCs, but the Taiwanese vendor is far more bullish about the Internet of Things (IoT), a market the company doesn’t want to miss out on.

Acer held a news conference not for a new consumer product, but to promote an upcoming miniature PC that will be sold to developers.

The PC, called the aBeing One, will arrive in the third quarter, and is aimed at developers working in the IoT area. It’s designed to connect to smart home and wearable products, and act as a hub that can analyze incoming data from the devices.

The PC vendor has spoken to many IoT companies looking for an affordable hardware system they can develop on, said Robert Wang, a general manager with Acer.

“Fast-moving IoT developers keep running into this issue,” he said after Acer’s news conference. “Now they can buy from us.”

It’s a big change for the vendor, given that it once focused on selling consumer notebooks. However, with PC sales sagging and competition rife in the mobile devices area, the company has been shifting toward enterprise products.

That emphasis was apparent at this week’s Computex show in Taipei. Acer notebooks and tablets were still on display, but equal billing was given to itscloud computing business, which is starting to power IoT devices, not only from Acer, but also its clients.

In addition, Acer is hoping to pave the way for more third-party IoT devices. It has partnered with Canonical to install a version of Ubuntu on its aBeing product, so that the hardware can serve Ubuntu developers working on smart connected gadgets.

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MediaTek Debuts Contactless Heart Rate Monitor

While MediaTek might be known for its multi-core smartphone processors, the firm was very keen to show off its more adventurous side at Computex 2015.

With a booth almost entirely dedicated to the latest and greatest from its new Labs division, which aims to bring the latest innovations from developers to market, MediaTek offered something a little more unexpected compared to previous years.

Launched in autumn last year, MediaTek Labs is a worldwide initiative to help developers of any background or skill level to create and market wearable and Internet of Things (IoT) devices.

With the firm’s LinkIt Development Platform, based on the MediaTek Aster (MT2502) chipset, sitting at its core, the Labs programme provides developers, makers and service providers with both software and hardware development kits, technical documentation and business support.

Here’s a few of our favourite innovations showed off at Computex, based on either the LinkIt One platform, or the firm’s fresh Helio P10 smartphone family of SoCs.

Heart rate monitoring smartphone camera
This “contactless heartrate monitoring” technology is powered by the firm’s Visual Processing Application in its latest P10 smartphone SoC.

It makes use of a smartphone’s video camera to take a heart rate reading via the front-facing camera by stripping down the layers of the image taken by the camera in real-time to detect the pulse in a user’s temple.

We were rather dubious about how well this might work, so gave it a go. While it took a good few seconds to match up, you can see from the photo that it is almost as accurate as the portable ECG monitoring device we had clipped on our finger. Impressive stuff.

Wine brewer
Winning first prize in the ITRI Mobilehero competition in Taiwan last year, this nifty IoT wine brewing device was developed by a local start-up called Alchema.

It consists of five sensors thatmonitor the alcohol content and the brewing environment. The results we tasted were, shall we say, interesting, if a little on the sharp side.

Alchema looking to raise more funds on Kickstarter before the end of the year.

Another LinkIt-powered device MediaTek showed off at Computex was a wearable aimed for the elderly. Using Bluetooth and accelerometer sensors, the wristband tracker detects the users’ wrist motions and raises an alarm, alerting those that are linked to the watch via a smartphone app if their elderly family member, loved one or friend’s device has detected a sudden movement that could resemble a fall or accident.

Sitting at the more mature end of the LinkIt developer platform spectrum, but still less than a year old, is an electric-scooter rental company called Skuro Moto. We spoke to its chief executive Frank Chen, who is running the company at the tender age of 24 after developing the idea while at university.

Skuro works with electric-vehicle maker Ahamani EV Technology to provide a rental service at Yuan Ze University in Taiwan. The bikes reduce costs for riders by about 30 percent thanks to a monitoring system enabled by the LinkIt chip that lets riders see their power usage. They can also be started by a swipe of a student identity card, to save the trouble of lost keys.

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Facebook To Require Stronger Digital Signature

Facebook will require application developers to adopt a more secure type of digital signature for their apps, which is used to verify a program’s legitimacy.

As of Oct. 1, apps will have to use SHA-2 certificate signatures rather than ones signed with SHA-1. Both are cryptographic algorithms that are used to create a hash of a digital certificate that can be mathematically verified.

Apps that use SHA-1 after October won’t work on Facebook anymore, wrote Adam Gross, a production engineer at the company, in a blog post.

“We recommend that developers check their applications, SDKs, or devices that connect to Facebook to ensure they support the SHA-2 standard,” Gross wrote.

SHA-1 has been considered weak for about a decade. Researchers have shown it is possible to create a forged digital certificate that carries the same SHA-1 hash as legitimate one.

The type of attack, called a hash collision, could trick a computer into thinking it is interacting with a legitimate digital certificate when it actually is a spoofed one with the same SHA-1 hash. Using such a certificate could allow an attacker to spy on the connection between a user and an application or website.

Microsoft, Google, Mozilla and other organizations have also moved away from SHA-1 and said they will warn users of websites that are using a connection that should not be trusted.

The Certificate and Browser Forum, which developers best practices for web security, has recommended in its Baseline Requirements that digital certificate issuers stop using SHA-1 as of Jan. 1.

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IBM Buys Blue Box

IBM HAS ACQUIRED Blue Box in an attempt to make its cloud offering even bluer. The Seattle-based company specialises in simple service-as-a-platform clouds based on OpenStack.

This, of course, fits in with IBM’s new direction of a Power PC, OpenStack cloud-based world, as demonstrated by its collaboration with MariaDB on TurboLAMP.

IBM’s move to the cloud is starting to pay off, seeing revenue of $7.7bn in the 12 months to March 2015 and growing more than 16 percent in the first quarter of this year.

The company plans to use the new acquisition to create rapid, integrating cloud-based applications and on-premise systems within the OpenStack managed cloud.

Blue Box also brings a remotely managed OpenStack to provide customers with a local cloud, better visibility control and tighter security.

“IBM is dedicated to helping our clients migrate to the cloud in an open, secure, data rich environment that meets their current and future business needs,” said IBM general manager of cloud services Jim Comfort.

“The acquisition of Blue Box accelerates IBM’s open cloud strategy, making it easier for our clients to move data and applications across clouds and adopt hybrid cloud environments.”

Blue Box will offer customers a more cohesive, consistent and simplified experience, while at the same time integrating with existing IBM packages like the Bluemix digital innovation platform. The firm also offers a single unified control panel for customer operations.

“No brand is more respected in IT than IBM. Blue Box is building a similarly respected brand in OpenStack,” said Blue Box founder and CTO Jesse Proudman.

“Together, we will deliver the technology and products businesses need to give their application developers an agile, responsive infrastructure across public and private clouds.

“This acquisition signals the beginning of new OpenStack options delivered by IBM. Now is the time to arm customers with more efficient development, delivery and lower cost solutions than they’ve seen thus far in the market.”

IBM has confirmed that it plans to help Blue Box customers to grow their technology portfolio, while taking advantage of the broader IBM product set.

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TSMC Moving To 16FF+ Soon

TSMC’s 16nm FinFET process has barely gotten off the ground, but the foundry is already talking about 16nm FinFET Plus, which is due to launch by the end of the year.

The improved 16nm FinFET Plus (16FF+) node is supposed to deliver more efficiency and performance, making TSMC’s node more competitive compared to Samsung’s 14nm node. That is the general idea, but TSMC’s first generation 16nm node has failed to impress in terms of design wins.

TSMC president CC Wei said the new 16FF+ node already has 20 tapeouts, ten of which achieved satisfactory yield performance. Wei said the company expects up to 50 tapeouts by the end of the year. TSMC expects 16FF+ to enter commercial production in the second half of the year.

16FF+ is not the only FinFET node coming from TSMC over the next year. The company plans to introduce 16FFC for compact devices sometime in the second half of 2016. In addition, 10nm FinFET is expected to enter risk production by the end of 2015, reports Digitimes.

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