It is a year of optimism for information-communication technology (ICT) suppliers and one offering smarter ICT products for users-a sentiment clearly perceived at the Computex Taipei 2007 trade fair held June 5-9.



Many of the 1,333 exhibitors ascribed the upbeat mood mostly to the newly introduced applications with fancy features that might considerably stimulate consumption of ICT products. The applications include Microsoft operating system Vista, Apple music player iPod and multimedia-enabled mobile iPhone, Intel-spearheaded next-generation mobile technology WiMAX and Nintendo game console Wii.

Industry watchers pointed out that these new applications are charming and, most of all, call for chips of higher speed and larger memory capacity.



Embedded computing systems were another focus at the show, suggesting computers are becoming more diversified and specifically target different user groups at home, commercial premises, in the military, factories, and offices.



A hopeful outlook was confirmed by show organizer Taiwan External Trade Development Council (TAITRA) who said that 44 buyers from 28 countries struck deals worth US$120 million with Taiwanese electronics-equipment suppliers at four joint-procurement conferences organized on the first day on the sideline of the trade show. Peter Huang, Executive Director of TAITRA`s Market Development Department, noted that the most wanted items at the show expanded to include digital photo frames, GPS, digital cameras, smart phones and MP3 players from computers and their peripherals.



Record buyers numbering 33,000, 10% more than the previous year, also mirrored the bright outlook of this year. TAITRA estimated that the computer trade fair will likely sow the seeds for business opportunities as lucrative as US$14 to 14.5 billion, compared with 2006 event`s US$12.7 billion.



Computext Taipei is the world`s second largest of its kind and No.1 in Asia, making it a pivotal battle ground for world leading suppliers including Intel, AMD, TI, Acer, Hon Hai Precision, Kingston Tech., Nanya Technology, Asustek Computer, VIA Technology, Microsoft, A-Data, Advantech, Inventec Corp., CMC Magnetic, Tatung, and Mitac. Totally, some 1,300 exhibitors used 2,907 booths this year.

Intel Xeon DP Processor With Nanotech a Latest

Intel, currently the world`s No.1 chipmaker, tried to impress visitors with its latest technologies, notably its 45-nanometer high-k process, Quad Core Intel Xeon DP processor for servers, and Intel Centrino Duo and Intel Centrino Pro processor technologies for notebooks.



"Intel is the first chipmaker to implement an innovative combination of new materials that drastically reduces transistor leakage and increases performance in its 45nm process technology. The implementation of high-k and metal materials marks the biggest change in transistor technology since the introduction of polysilicon gate MOS transistors in the late 1960s," said Sean Maloney, Intel`s executive vice president, general manager of sales and marketing group, chief sales and marketing officer, at the trade show.



An Intel engineer demonstrated 45nm technology`s power by comparing it with 65nm processor in a contest processing the same software at Intel`s booth. "The outcome was that 45nm technology completed the running in 10 seconds while 65nm processor did it in 16 seconds," he announced. By using a new material combination of high-k gate dielectrics and metal gates, Intel`s 45nm transistors significantly improves performance to deliver faster multi-core processors that consume less power, the engineer explained.



Maloney said 45nm CPUs supported by Intel`s Bearlake chipsets will represent 50% of the company`s microprocessor shipments by the third quarter of next year, with 65nm platform contributing to the rest.

Intel also demonstrated Intel Core 2 quad-core processor platform supported by its 3-Series Express Chipsets, which together give outstanding performance in running 3D games and fun games. The configurations are ideal for gamers, digital design professionals and enthusiasts. Intel 3 Series chipsets support DDR2 memory chips with data transfer speed up to 800MHz, and DDR3 chip up to 1333 MHz, enabling speedy access to files and a more responsive PC.



For notebook computers, the company`s next-generation mobility platforms are Centrino Duo and Centrino Pro processors. The new platforms feature the enhanced Intel Core 2 Duo processor, Mobile Intel 965 Express Chipset, Intel Next-Gen Wireless-N technology and Intel Turbo memory.



Trying to Outdo Intel With FASN8

At this fair, AMD took on Intel head-on in quad-core competition with its "FASN8" eight-core platform, which it claimed includes two "true" quad core AMD Phenom processors, the new DirectX10 ATI Radeon HD 2900 XT and an upcoming AMD next-generation chipset due in the second half this year. An AMD engineer explained that the cores of the processors communicate via silicon die rather than through a front side bus external to the processor, which is the structure for Intel`s duo quad processor. "When signal is processed on the die, the processing speed is much faster [than processed through a front side bus. It is as if a man had four noses simultaneously to inhale and exhale," he said.



AMD Executive Vice President and Chief Sales and Marketing Officer Henri Richard at the show highlighted the company`s energy-efficient computing advantage with the impending native quad-core launch of "Barcelona" processor, raising the level of performance-per-watt computing in the data center. He noted Barcelona will be built on AMD`s 65nm SOI process, which allows for lower voltage and thermal output while increasing circuit densities. He went on that the CPU itself supports separate CPU core and memory controller power planes. "This allows the CPU to lower its power state while the memory controller is running full bore. If a particular task is memory bandwidth intensive, but not necessarily CPU intensive, this can improve power utilization," he said. AMD estimates that the power consumption of a Barcelona will fit within a 95W envelope.



AMD`s other energy-efficient solutions at Computex Taipei were AMD Athlon X2 dual-core processor BE2350 and AMD Athlon X2 dual-core processor BE-2300. The processors are 45-watt products based on 65nm technology. An AMD engineer said that microprocessor wattage consumption has been largely reduced from 125W to 65W and AMD`s 45W is said to be the industry`s lowest. The lowest power wattage keeps noise from the microprocessors under 30 dBm in decibel, according to an AMD engineer.

"These innovations help AMD deliver on its commitment to leading the world to energy efficient processing by empowering OEMs and system builders to deliver smaller, quieter computing solutions for desktops at home, as well as other locations," said Bob Brewer, AMD corporate vice president and general manger of desktop division.

The company`s small form desktop solution is the DTX motherboards, which the company introduced early this year. The boards come in 200mm by 170mm and 170mm by 170mm, compared with the standard ATX board`s 244mm by 244mm for today`s desktop computers.

Driving DTX Motherboards as Standards

AMD is driving the motherboards as open standard specifications to help enable the development of small form factors systems. The DTX standards will empower OEMs, ODMs, and component vendors to design solutions based on open standards that can deliver new innovative systems to market, while leveraging commonalities within the ecosystem that can benefit customers and end users. "Specifications of small form factor systems are pretty diversified, which means high costs for the production. If the specifications become unified, the costs can be pared down considerably," explained an AMD engineer.

Market research firm IDC forecast global shipments of small form factor desktops to increase to 46 million systems in 2009 from 2006`s 16 million systems. The 2009 figure is estimated to constitute 28.1% of world shipments of various form factor systems combined including tower desktop, minitower desktop, ultrasmall form factor desktop, and tiny desktop.

Such specification has won supports from motherboard makers, including Asus, Albatron, Cooler Master, ECS, Gigabyte, MSI, Silverstonne, and Thermaltake, which introduced functional DTX platforms at AMD`s booth during the show.

For brand-name PC suppliers like Acer Inc., impressing visitors with unique designs rather than boasting hardware technologies inside PCs was the top goal at the show. For instance, Acer showcased a shinning notebook computer codenamed "Gemstone," the latest version of its Aspire family for home users, and the latest TravelMate notebook computers for businesspeople.

Captivating Attention With Glitzy Design

Gemstone has a streamlined design with a dark interior and a bright exterior. The rounded outer edge of the computer`s upper half is encased with a crystal-like material, giving it a jewel-like finish. "Brand-name suppliers have a tough time capturing the attention of end users without offering outstanding designs, particularly at a time when hardware technologies are nearly identical," an Acer sales engineer stressed.

Gemstone is equipped with a magnesium-aluminum case and its inner parts are coated with nanometer-class ceramic, making it stain-proof. The computer comes with Dolby surrounding stereo technology, reportedly being the world`s first notebook with the superb audio function. Besides, around the keyboard are lit lines, called "Enlightener Media Flow," designed to help users easily identify the computer`s multimedia functions. "Gemstone stresses home entertainment, so `easy and fun` is the basic appeal of the brand new Aspire design," the sales engineer emphasized.

Although the world`s No.3 PC supplier had already begun shipping Gemstones in Europe and America, it exhibited the intriguing notebook computer at the Computex Taipei for the first time.

The latest version of TravelMate has several smart interfaces like the Acer BioProtect fingerprint recognition technology and its Empowering access key. Its powerful functions include teleconferencing capability based on built-in Bluetooth Internet phone and camera.

Acer`s chairman, J.T. Wang, expected Vista to give a boost to his company`s business in the second half of this year. However, he recently revised the expectation and delayed the arrival of the market impetus due to some compatible glitches.

Like many memory-module suppliers at the show, A-Data Technology Co., Ltd., currently Taiwan`s No.1 maker of dynamic random access memory (DRAM) modules with 2006 revenue of NT$46 billion (US$1.3 billion), demonstrated flash-memory solid-state drives (SSDs). "Memory-module makers are expecting SSDs to partly replace hard-disc drives soon as major memory drives in PCs, especially notebooks," explained Dr. Gibson Chen, A-Data`s vice president.

Chen noted that SSD has several advantages as an alternative to hard-disc drives. "SSD is more power efficient, speedier in booting up computers, and, most of all, not affected by tremors," he stressed. Currently, hard-disc drives use pick-up head to read data. SSD, Chen noted, does not use contact mechanism to read data, freeing it from failing due to motion-sickness.

SSDs Still Cost More Than HDs

The company demonstrated a full lineup of SSDs at Computex Taipei, with 32GB marking the maximum load specification. "High production costs remain the major factor keeping SSDs from edging out hard-disc drives. Besides, HD`s load capacity has grown manifold. If SSD`s capacity grows at this rate, its costs will increase considerably," Chen said. "So, I`d rather believe SSD will only steal part of HD`s market share than buy the idea that it will completely replace HD," he added. The replacement rate, he estimated, will range from 5-20% and the market shift will become more apparently in 2009, when SSD`s price-per-gigabyte is estimated to drop to expected levels. Some forecast the unit price to fall to US$2 per gigabyte by 2009 from current US$4.

Flash memory is currently built into mostly consumer electronics, mobile phones, and digital cameras.

Chen said that SSD is not just a storage device now but also a supporting device to computers running on Vista thanks to its ready boost function developed in compliance with Vista. So, Chen thinks that the increasing adoption of Vista will help boost memory capacity needs. "For DRAM, one gigabyte will be the minimum requirement. The next half we will launch DDRII delivery speed up to 667MHz and 800MHz in addition to SSDs," he said.

Chen thinks that Vista as the new-generation OS is an important factor for PC market. "But I don`t think Vista will necessarily trigger PC replacements. Instead, I believe that users with downed PCs will be driven to buy Vista PCs," he said. However, he felt that back-to-school shopping in the second half will help push Vista PC procurement.

A-Data also demonstrated digital photo frames at Computex Taipei. Its frames support CF cards, MMC cards, SD cards, and USBs.

Asustek Computer Inc. brings closer to reality the idea of replacing HD with SSD in notebook computers by introducing its Eee PC 701. The computer, measuring 22.5cm by 16.5cm by 2.1-3.5cm and weighing only 0.89 grams, has a 4-gigabyte, a 6-gigabyte or a 16-gigabyte flash memory card.

The micro notebook uses Intel Mobile CPU and chipset and runs on Linux or Windows XP. Its hardware includes DDR2-400 512M DRAM, Intel UMA graphic processing unit, WiFi 802.11b/g module, 10/100 Mpbs Ethernet module and 56K modem, 300,000-pixel video camera, built-in stereo speaker and microphone, and a four-cell battery. The company markets the system as a low-cost ultra portable PC device, priced from US$199. "But our low-cost computer is different from the one spearheaded by the UN. The major difference is ours focuses on entertainment whereas UN`s stresses education application," explained Wendy Tsai, manager of Asustek`s production marketing department.

Micro PC Targeted at Green Users

Tsai noted that the "Eee" represents "easy to learn," "easy to work" and "easy to play," so the target market consists of inexperienced users. "Since penetration of PCs into the senior segment has reached a saturated 70-80%, we think the remaining 20% deserves exploration," she said.

Asustek aims to ship 500,000 units of Eee by the end of this year after beginning volume production in July.

Advantech Co., Ltd., Taiwan`s No. 1 manufacturer of industrial computers, demonstrated the industry`s lightest product-its ARK4000-family embedded box computers. They measure 164mm x 170mm x 49.2mm and weigh only two kilograms.

These computers are appreciated for many advantages. They are shock and vibration resistant, work in temperatures from 40C below zero to 80C, are modularized and stackable, and can be built according to customized needs. The computers are equipped with Intel Pentium M 1.4GHz processor, Intel Celeron 400MHz processor and AMD Geode LX800 processor depending on types.

The box computers are developed for rugged applications such as military and heavy-duty purposes.

According to the company`s vice president for industrial and networking computing group, Franz Wei, more and more industrial-computer users prefer ready-to-go computers to barebone products, which allow them to put the finishing touches according to their own design. "The force driving them toward assembled computers is independent design usually takes time and, sometimes, cause them to miss critical marketing windows," he said.

The company`s computers are mostly built into industrial automation systems, gaming machines, signage and kiosks, medication systems, network security systems, telecommunications equipment, and transportation systems.

Wei is optimistic about business in the second half of the year, forecasting his company`s business to increase 20% from the same period of last year. "In th3e second half of the year, we have six to seven new products to come out and we believe they will be big hits," he said.

Winning With Customized Design Service

WiMAX has emerged as an important market for Advantech. According to Wei, his company has received orders from multinational telecom-equipment heavyweights for computers for office-end WiMAX equipment. "We expect the trend for big equipment players to outsource supplies to become more apparent in the near future," he said. When asked about the company`s major advantage in winning big players` orders, he said: "Our customized design service is strong."

Advantech`s medical-application computer business is also on the rise. "Medical automation need is increasing due to labor-saving consideration," Wei said. He pointed out that his company plans to spin off its medical-application computing business group as an independent operation to expand its share of the market.

Two subwoofer home audio systems for connecting iPod music player were among TwinMOS Technologies Inc.`s latest products promoted at Computex this year. Its BooM1 system measures 402mm (L) x 80mm (W) x 57mm (H) while its miniBooM system is 220mm by 150mm by 70mm. Both types are equipped with a 2.1-channel stereo system and compatible to a wide range of iPod versions, including iPod G3/G4/G5 and iPod mini/shuffle/nano.

The miniBooM, a sequel to the Boom1, comes with an LCD display showing FM tuner, sound effect, alarm/sleep modes, calendar, time, and battery status. Currently, they are wire controlled. The company plans to roll out wireless types using the Bluetooth infrared technology.

"The audio systems reflect TwinMOS` transformation from a memory-module manufacturer into a multimedia end-product supplier by building its memory technology into the products," said Sophia Lei, section manager of TwinMOS strategic marketing division.

Another TwinMOS leading-edge product was the USB Mobile Disk M9, which supports Vista Ready Boost function. The thumb-sized disk also features high reading and writing speeds, optional password protection and plug & play design.

Transcend Information Inc., another leading Taiwanese memory-module manufacturer, showed off a unique MP3 player codenamed T.Sonic 820. The gadget, 8.2cm by 4.14cm by 1.5cm, also offers video, radio, photographing, recording and e-book functions. "It is the industry`s first MP3 player with video playing function," said Transcend sales manager Douglas Tsai.

Best Picture Definition in MP3

Tsai reported that his company`s MP3 player was among the three best-selling brands in Taiwan. His company will introduce T.Sonic 840 next month, a better version of 820. "840 is equipped a 1.8-inch LCD screen delivering picture quality of 176 x 220 pixels. This is yet the best picture definition in an MP3 player," he claimed.

Like many DRAM-memory-module suppliers on the island, Transcend has begun depending on flash-memory cards for good profits. "In this field, our advantage is we have secured a supply of flash-memory chips from Samsung. Now, we`re their largest buyer of the chips," Tsai said.

Global positioning system (GPS) was a hot product at the show. No.1 portable navigation device (PND) supplier Mio Technology Corp., an affiliate of Mitac International Corp., exhibited a full lineup of the gadgets, one of which is the C720 car navigation system.

The C720 was introduced in late May. A new function added is the traffic message channel (TMC), which offers drivers real-time traffic information. Other cutting-edge functions include a 4.3-inch widescreen TFT touch screen, a built-in 2-megapixel camera, a Bluetooth V2.0 hand-free calling interface, and a 20-channel SiRFstarIII GPS receiver.

Sam Lien, account manager of IV sales division II at Mitac`s mobile communications product business unit, is optimistic about the market not only for the second half of this year but also the next few years. "The prices have fallen to attractive levels with the lowest being only US$199 now. Besides, there is still ample room for GPS market to grow, particularly in North America. In Europe, the device is now a necessity to drivers. In the U.S., the market has just begun. Actually, a GPS device commands higher profit than does a notebook computer," he said.

The company says on its home page that it has captured over 50% of world market for PNDs and 37% of U.S. market for the devices. A sales engineer of the company said global shipments of the devices average 25-28 million systems a year.

Lien noted that the trend in the competition is toward the strong becoming stronger and the weak becoming weaker. "Currently, there are hundreds of suppliers in the market and we estimate the number will likely drop to only dozens in six months to a year. GPS is not an easy business after all. Your after-sale service and technological support must be strong enough because topographical landscapes change and you have to keep updating data in customers` machines, as well as adding new functions. That means big investments in talents, technologies, and overseas offices," he said. The Taiwan-headquartered company has opened outlets in mainland China, Belgium, United States, Japan and South Korea.

Early Bird Gets the Worm

Lien said that his company`s advantages over rivals are its early entry into GPS field, more resources put into GPS technology and strong system-integration capability. "We entered the segment in 2003, now have 400 to 500 staffers and we only produce end-market products instead of components," he noted.

His company is planning to tap the automaker segment as increasing numbers of cars are rolling off the assembly lines with built-in navigation systems. "Cars with standard systems is the trend now," he said.

LCD TVs also took center-stage at the show, with each exhibitor vying to catch attention. Tatung Corp., for instance, showed off a 42-inch, 100Hz European-type TV, which is said to be the first Taiwanese LCD TV boasting picture flicker rate of 100Hz per second, which, according to the company, makes flickering and shudders invisible. Currently, 60Hz is the most common in such TVs. Its latest models at the show included 26-ich, 32-inch and 37-inch products.

"Along with digital entertainment becoming more diversified, the competition in video industry will become tougher in the 21st century. So, only suppliers whose products can captivate eye of consumers will be winners," said W.S. Lin, Tatung`s chairman and president.

Lin estimated that his company will likely ship over one million LCD TVs throughout this year, up from last year`s 700,000 systems. "That`s because of our cooperation with Proview Electronics," he said. His company has acquired a 20% stake in LCD monitor maker Proview Electronics Co., Ltd., becoming its second-largest shareholder.

Lin holds a rosy outlook on global LCD TV market for next year based on what has really happed to the world market up to the middle of this year. "The world market should have 100 million systems next year because seven million systems have been shipped by the middle of this year," he said.

Lin said that the crossover from cathode-ray-tube (DRT) TVs to LCD TVs will still take some time in light of the reality that CRT TVs account for 150 million systems in global TV market.

When microprocessor suppliers are boasting quad-core technology, the processors need matching devices to work perfectly. To meet such trend, Nanya Technology Corp. introduced its Elixir-branded DDR3 memory modules at the show. The modules can transfer data effectively up to 1600MHz, nearly double that delivered by its DDR2 cousins. Also, the company`s DDR3 products come with a promise of lower power consumption, using 1.5-voltage operating current, compared with DDR2`s 1.8 voltage.

"To cope with the imminent quad-core era and burgeoning gaming market, Nanya introduced a full lineup of DDR3 to enable gamers to fully enjoy themselves," said P.L. Pai, Nanya`s spokesman. His company expects DDR3 to replace DDR2 as mainstream DRAM chips in 2009 considering quad-core environment will become mature then.

Outdoing Rivals With Product Variety

For contract electronics manufacturer Hon Hai Precision Industry Co., Ltd., the ability to produce as many different products as possible is key to staying ahead of rivals in contract-manufacturing market. Computex Taipei saw the firm eager to prove its ability by exhibiting a wide variety of its latest motherboards, graphics cards, computer cases and fans.

"There is no such thing as the `best product` in the market except only products that best meet customer requirements. Thanks to diversified demands and rapid changing IT industry, single-product strategy is no longer effective," said Wang Wen-yu, Hon Hai`s global market manager.

The world`s No.1 contract electronics manufacturer also tried to impress visitors with its eco-sensitive image and RoHS compliance with its eco-themed booth, 80% of which was built with recyclable materials.
(by Ken Liu)