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2014 
BUSINESS & TECHNOLOGY 
INNOVATION REPORT 
Week 
43/44/45 
Prepared by 
Ferhat Ünlükal 
11/09/2014
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
BUSINESS & 
TECHNOLOGY 
INNOVATION 
REPORT 
Week 43/44/45 
Headlines 
Consumer Electronics (CE) 
• Samsung announced that it acquired 
! 2 
Proximal Data. 
• Panasonic Corp. plans to sell subsidiary 
Sanyo's North American television set 
business to Funai Electric. 
• TV vendors aim to ship 34 million Ultra 
HD TVs in 2015. 
• OLED TV pricing is expected to remain 
double that of Ultra HD TVs through 
2016. 
• The public flat panel display market is 
expected to grow 14% in 2014 and 
27% in 2015 
• Global curved televisions could grow at 
a tremendous CAGR of 96.7% between 
2013 and 2019. 
• Samsung Electronics Co. and LG 
Electronics Inc. are expected to sell a 
combined 81.5 million liquid crystal 
display (LCD) TVs this year, taking up 
about 38% of the global market. 
• Taiwan makers' shipments of LCD TVs 
are expected to reach 19.69 million 
during the second half of 2014. 
ICT 
• LG smartphones usually have used 
third-party processors, but the 
company has become its own chip 
supplier, announcing the LG Nuclun. 
• Chinese mobile phone manufacturer 
Xiaomi will invest $1 billion in TV and 
video content. 
• The amount of traffic flowing through 
the world’s data centers is set to treble 
in the next four years. 
• Foxconn is looking a closer look at the 
Philippines. 
• The server joint venture set up by 
Hewlett-Packard (HP) and Foxconn 
Electronics has begun to exercise its 
muscle to solicit data-center server 
orders from Microsoft, Facebook and 
Amazon. 
• Foxconn is considering investing in a 
new factory. 
• The AllSeen Alliance announced that 
nine new companies have joined the 
initiative. 
• Connected-home device shipments will 
grow at a compound annual rate of 
67% over the next five years. 
• Global shipments of tablets in the third 
quarter of 2014 rebounded to quarterly 
growth thanks to inventory preparation 
for the traditional high season. 
Shipments reached 63.4 million units. 
• Home Automation market was valued 
at US$3.6 billion in 2012 and is 
expected to reach US$16.4 billion by 
2019, growing at a CAGR of 24.6% 
from 2013 to 2019. 
• With global shipments of LCD monitors 
expected to drop from 136 million in 
2014 to 132 million in 2015 and further 
to 128 million units in 2017. 
• Fleet Management Market will grow 
from $12.56 billion in 2014 to $35.35 
billion by 2019 
Flat Panel Industry 
• LG said it will supplement its line-up of 
next-generation TVs with sets using 
cheaper quantum dot display 
technology. 
• AUO has plans to allocate capital in 
2015 to expanding production at 8.5G 
facilities for TV panel applications. 
• Innolux is rumored to have issues 
acquiring a syndicated loan for NT$60 
billion (US$1.97 billion).
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 3 
• Semiconductor Energy Laboratory 
(SEL), demonstrated a display that can 
be folded in three. 
• The global proportion of small- to 
medium-size TFT LCD production 
capacity from China is expected to 
increase to 35% as of 2017. 
• Pricing for 32-inch open cell TV panels 
has increased US$1 to US$91. 
• Ultra HD TV panel shipments 
meanwhile are expected to reach 17.83 
million units in 2014. 
• Taiwan makers' shipments of large-size 
TFT LCD panels sized 9-inch and above 
reached 67.92 million in the third 
quarter of 2014. 
• Asia Pasific Flexible display market was 
valued at $152.7 million in 2013, and is 
expected to reach $864.3 million by 
2018, at a CAGR of 41.4 % from 2013 
to 2018. 
• European Flexible display market was 
valued at $226.4 million in 2013, and is 
expected to reach $945.6 million by 
2018, at a CAGR of 33.1% from 2013 
to 2018. 
Semiconductor Industry 
• Texas Instruments (TI) (TXN) 
announced the WiLink™ 8 combo 
connectivity modules. 
• Broadcom introduced advanced G.fast 
capabilities for its BCM63138 gateway 
SoC. 
• NXP is opening up the large field of 
automotive-based NFC applications. 
• SiTime Corporation announced that it 
has signed a definitive agreement 
under which MegaChips Corporation 
will acquire SiTime for $200 million in 
cash. 
• Worldwide sales of semiconductors 
reached $87 billion during the third 
quarter of 2014. 
• Consideration of DSL and G.fast chips 
market forecasts indicates that markets 
at $939 million will reach $4.7 billion by 
2020. 
• Worldwide market revenue for sensors 
used in mobile handsets and media 
tablets will rise to $6.5 billion in 2018. 
• The Asia Pasific Sensor market was 
valued at $392.8 million in 2013, and is 
expected to reach $3,065.5 million by 
2018, at a CAGR of 50.8% from 2013 
to 2018. 
• The market size of the magnetic field 
sensors market is expected to grow 
from the $1.6 Billion that it accounted 
for in 2013 to $2.9 Billion by 2020. 
• The Global 3D IC market to grow at a 
CAGR of 18.4% over the period 2013- 
2018. 
Software Industry 
• Google will create a hardware store in 
which users can buy and sell Lego-like 
hardware modules for the customizable 
Project Ara smartphone. 
• Google Inc. (GOOG) added home-automation 
device maker Revolv Inc. 
Service Industry 
• The worldwide Pay TV market is 
expected to surpass 920 million 
subscribers by the end of 2014. 
Retail and Payment Industry 
• Verifone recently announced the global 
availability of its secure commerce 
architecture. 
• Verifone announced recently that its 
complete Payment as a Service solution 
has been selected by Turkish Airlines. 
• ROAM launched today the latest 
version of its mobile point of sale 
(mPOS) application, ROAMpay X5. 
• Ingenico Group unveiled its new 
comprehensive global offer, Telium 
Tetra. 
• Apple CEO Tim Cook said Apple's new 
mobile payment system had over 1 
million activations in the first three 
days. 
• Worldline announces its reseller 
partnership with Powa Technologies. 
• Casio America, Inc., a leading point-of-sale 
(POS) system supplier, announced 
its partnership with MicroSale.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 4 
• Poynt said it signed two of the largest 
payment processors. 
• MasterCard Inc. (MA) announced a pact 
with Transaction Network Services 
(:TNS) to acquire the latter’s Payment 
Gateway Services business. 
• First Data unveils Clover™ Mobile, a 
powerful new mobile point-of-sale 
(POS) business solution that brings new 
flexibility and versatility to the Clover 
family. 
• On Track Innovations 
Ltd. (oti) and Cantaloupe Systems, 
Inc., have confirmed oti's NFC 
contactless Saturn 6500 
readers integrated in Cantaloupe's Seed 
Cashless. 
Energy Industry 
• The annual smart bulb shipments are 
set to increase to 223 million by 2020, 
achieving a total installed base of over 
400 million. 
Consumer Electronics (CE) 
Samsung 
Acquisition of Proximal Data 
• Samsung Electronics Co. Ltd., a world 
leader in advanced semiconductor 
solutions, announced that it acquired 
Proximal Data, Inc., a San Diego, 
California-based pioneer of server-side 
caching software with I/O intelligence 
that work within virtualized systems. 
Panasonic 
Selling Sanyo’s North American TV Business 
• Japanese consumer electronics giant 
Panasonic Corp. (PCRFY.PK, PCRFF.PK) 
plans to sell subsidiary Sanyo's North 
American television set business to 
Funai Electric, Nikkei reported citing 
people familiar with matter. 
• Panasonic and Funai Electric are 
expected to agree on the value of the 
deal by the end of this year, after 
discussing specific terms. The sale of 
the unit will likely be completed by the 
end of March, the paper said. 
• Sanyo is struggling in North America 
because of fierce price competition 
from Chinese rivals. 
CE Market 
UltraHD TV 
• TV vendors aim to ship 34 million Ultra 
HD TVs in 2015, up 120% on year, 
according to supply chain sources. 
• China is expected to be the largest 
market during the year and demand for 
sizes 50-inch and above is expected to 
continue climbing. 
• Vendors will continue to pursue wide 
color gamut technology that provides 
viewing experiences on par with OLED, 
the makers said. 
• Meanwhile, Digitimes Research noted 
that Skyworth has increased its sales 
proportion of Ultra HD TVs in the China 
market from 12% in May 2014 to 15%
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 5 
in September, and also held a 27% 
proportion during the October 1 period. 
OLED TV 
• OLED TV pricing is expected to remain 
double that of Ultra HD TVs through 
2016, which will influence the 120% 
on-year expected growth in Ultra HD 
TV shipments in 2015, according to 
Digitimes Research. 
• More than half of the Ultra HD TVs 
shipped throughout 2016 are expected 
to go to the China market where low-priced 
units will drive most of the 
demand. 
• Ultra HD TV panel shipments 
meanwhile are expected to reach 17.83 
million units in 2014, up 475% on year, 
according to Digitimes Research. 
• The average of panel sizes shipped in 
2014 are estimated at 50.8-inch of 
Ultra HD TV and 39.8-inch for LCD TV. 
Public Flat Panel Display 
• The global large-screen public flat-panel 
display (FPD) market is 
rebounding after declines in 2012 and 
flat growth in 2013. According to 
DisplaySearch, the market is expected 
to grow 14% in 2014 and 27% in 2015, 
as economies gradually recover from 
the global economic downturn. 
Curved Televisions 
• "Curved Televisions Market (By Screen 
Size - Large-sized Curved Televisions, 
Mid-sized Curved Televisions and 
Small-sized Curved Televisions) - Global 
Industry Analysis, Size, Share, Growth, 
Trends and Forecast, 2013 - 2019", 
states that global curved televisions 
could grow at a tremendous CAGR of 
96.7% between 2013 and 2019, and 
the market is poised to be worth US$ 
8.4 billionby 2019. This market valued 
mere US$ 0.14 billion in 2013. An 
innovative design and enhanced 
features of curved television sets are 
the major factors driving their global 
demand from residential as well as 
commercial sectors. 
South Korean Players 
• South Korean tech giants Samsung 
Electronics Co. and LG Electronics Inc. 
are expected to sell a combined 81.5 
million liquid crystal display (LCD) TVs 
this year, taking up about 38% of the 
global market, a market tracker said 
Sunday. 
• Samsung, also the world's largest 
smartphone maker, will likely ship 48 
million units of LCD TVS this year 
worldwide, up 11% from the previous 
year, South Korean News Agency 
(Yonhap) reported Display Search as 
saying. 
• LG, Samsung's domestic rival, is 
forecast to sell 33.5 million LCD TVs in 
the global market in 2015, up 15% 
from a year earlier. 
• The combined market share of 
Samsung and LG, the top two global 
sellers of LCD TVs, is likely to reach 
37.5% this year, compared with 34.8% 
last year, Display Search said. 
• Their share of the global LCD TV 
market has been on the rise in recent 
years with the figure coming to 30% in 
2010, 30.8% in 2011 and 33.2% in 
2012. 
• Display Search said Samsung and LG 
have raised their LCD TV sales targets 
this year amid strong shipments of 
some models. 
• TCL of China will likely become the 
world's third-largest vendor of LCD TVs 
this year with 14.3 million units, 
followed by Sony of Japan with 12.5 
million units, Display Search said. 
• In terms of revenue, the two 
companies are expected to chalk up a 
combined LCD TV market share of 
more than 45% this year, it added. 
• A total of 217 million LCD TVS are 
expected to be sold across the world 
this year, up about 5% from the 
previous year, according to Display 
Search.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
Taiwan Makers LCD TV shipments 
• Taiwan makers' shipments of LCD TVs 
! 6 
are expected to reach 19.69 million 
during the second half of 2014, up 
6.4% on year, according to Digitimes 
Research. 
• Shipments reached 8.72 million in the 
second quarter of the year, up 15.7% 
from 7.53 million in the first quarter. 
During the second quarter 45.1% of 
shipments went to North America while 
26.1% went to vendors in Asia. TVs 
sized 50-inch and above accounted for 
16.9% of the makers' shipments while 
that for 32-inch units dropped below 
30%, indicating increasing demand for 
larger-size TVs, said Digitimes 
Research. 
• TPV, Foxconn Electronics and Wistron 
were the leading makers in the second 
quarter, with Wistron increasing 
shipements to Vizio and to Xiaomi. 
Compal meanwhile expected strong 
shipments to Toshiba and Amtran 
decreased shipments to Vizio. 
• Moving into the second half of the year, 
the Taiwan makers can expect to see 
sequential growth of 10% and 5.3% in 
the third and fourth quarters 
respectively. Nearly 20% of shipments 
will be for 50-inch and larger sizes and 
vendors in Europe and North America 
will make up about a 25% customer 
proportion. TPV will hold a 48% share 
in the second half while the three main 
makers will hold a 79.4% share. 
• For 2014, Digitimes Research expects 
LCD TV shipments from OEMs to reach 
47.05 million globally. Taiwan makers 
will account for 35.93 million, up 5.1% 
on year. 
ICT Industry 
LG 
Own Designed Smartphone Chip 
• LG smartphones usually have used 
third-party processors, mostly from 
Qualcomm, but the company has 
become its own chip supplier, 
announcing the LG Nuclun, an eight-core 
ARM processor. 
• The Nuclun makes its debut in LG's 
new G3 Screen phablet and will likely 
appear in other devices as well. LG has 
made no official statement but given 
the engineering that went into this chip 
they aren't going to use it in just one 
device, although they picked the right 
device to start. 
• The LG G3 Screen is a 5.9-inch phablet 
exclusive to Korea with a full HD 
display and a 13 megapixel rear 
camera with optical image stabilization. 
For a chip like this, a phablet makes 
sense, since they are often laptop 
replacements. 
Xiaomi 
Investment in TV and video content 
• Chinese mobile phone manufacturer 
Xiaomi will invest $1 billion in TV and 
video content and has hired Chen 
Tong, a leading Internet executive from 
the online firm Sina, to oversee the 
fund. 
Cisco 
Datacenter Traffic 
• The amount of traffic flowing through 
the world’s data centers is set to treble 
in the next four years, with the vast 
majority of this (76 percent) will being 
cloud-based traffic, says Cisco Systems 
Inc. in its annual Cloud Index study. 
• Cisco forecasts strong growth in the 
amount of cloud traffic, cloud storage 
and cloud workloads, with private cloud 
use being significantly larger than that 
of public cloud. As for overall data
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 7 
center traffic, this will grow to some 8.6 
zettabytes a year in 2018, up from 3.1 
zettabytes in 2013, amounting to 23 
percent annual growth. To get an idea 
of the sheer amount of data, Cisco says 
8.6 zettabytes is roughly equivalent to 
streaming all of the movies and TV 
shows ever made in 4K resolution over 
250,000 times. 
• Cisco says increased Internet access 
and consumer cloud usage will be two 
of the main factors contributing to this 
growth. According to the United 
Nations, the world’s population will 
reach 7.6 billion by 2018, and 50 
percent will have Internet access at 
home, with half of those also using 
personal cloud services. 
Foxconn 
Investment potential in Philippines 
• Foxconn Technology Group, the world’s 
largest computer manufacturer and 
supplier to Apple Inc., is looking a 
closer look at the Philippines as 
company officials visited various 
economic zones in the country. 
• Amadeo R. Perez Jr., chairman of the 
Manila Economic and Cultural Office 
(MECO), told reporters that Foxconn 
officials came over three months ago 
and were brought to various ecozones, 
including the country’s Freeport zones 
Subic and Clark, and Calabarzon areas 
such as Batangas, Laguna and Cavite. 
Server JV with HP 
• The server joint venture set up by 
Hewlett-Packard (HP) and Foxconn 
Electronics has begun to exercise its 
muscle to solicit data-center server 
orders from Microsoft, Facebook and 
Amazon, a trend which will intensify 
competition in the server segment in 
2015, according to industry sources. 
• HP and Foxconn signed the non-equity 
joint venture agreement in May 2014, 
aiming to optimize their expertise and 
technologies related to cloud 
computing to respond promptly to 
client needs for ever-changing cloud 
solutions, according to sources at 
Foxconn. 
• Meanwhile, HP's decision to separate 
its hardware and software business and 
the fast-growing cloud services and 
data center business have prompted HP 
to step into the data-center server 
sector, said the industry sources. 
• The HP-Foxconn joint venture is 
expected to affect operations of brand 
vendors such as Dell, white-box server 
suppliers Quanta Computer and 
Wiwynn (Wistron), as well as ODMs 
such as Inventec and Mitac 
International, said the sources. 
Investment in a new factory 
• Foxconn, the major manufacturer that 
assembles computing devices for 
companies like Apple and Microsoft, is 
considering investing in a new factory, 
a report claims. 
• Foxconn and Zhengzhou government 
officials in north central China are in 
preliminary talks over the possibility of 
investing in a major factory that would 
focus solely on the manufacturing of 
displays, the Wall Street 
Journal reported Thursday, citing 
people who claim to have knowledge of 
the talks. The total investment could 
reach as high as $5.7 billion, which 
would make it the largest in Foxconn's 
history. 
AllSeen Alliance 
New Members 
• The AllSeen Alliance, a cross-industry 
collaboration to advance the Internet of 
Everything through an open source 
software project, announced that nine 
new companies have joined the 
initiative -- dog hunter, FengLian, 
ForgeRock®, INSTEON, MobilityLab, 
NETGEAR, Organic Response, Quanta 
Computer and VeriSign, Inc. With the
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 8 
addition of these new members the 
Alliance totals 80 companies and 12 
sponsored members. 
ICT Market 
Connected Home Device Shipments 
• Connected-home device shipments will 
grow at a compound annual rate of 
67% over the next five years, much 
faster than smartphone or tablet device 
growth, and hit 1.8 billion units shipped 
in 2019, according to BI Intelligence 
estimates. Connected-home devices 
include all smart appliances (washers, 
dryers, refrigerators, etc.), safety and 
security systems (internet-connected 
sensors, monitors, cameras, and alarm 
systems), and energy equipment like 
smart thermostats and smart lighting. 
• The connected-home category will 
make up about 25% of shipments 
within the broader Internet of Things 
category this year, but that share will 
increase gradually to roughly 27% in 
2019 based on our forecast, as growth 
in other IoT areas picks up. 
• Connected-home device sales will 
drive over $61 billion in revenue this 
year. That number will climb at a 52% 
compound annual growth rate to reach 
$490 billion in 2019. 
Tablet Shipments Market 
• Global shipments of tablets in the third 
quarter of 2014 rebounded to quarterly 
growth thanks to inventory preparation 
for the traditional high season. 
Shipments reached 63.4 million units, 
up only 1% from the same period last 
year according to estimates from 
Digitimes Research. The tablet market 
matured earlier than expected with the 
iPad and white-box tablets both failing 
to show significant shipment growth. 
Total third quarter iPad shipments were 
merely 15 million units, up 6.4% on 
quarter. 
Home Automation Market 
• Transparency Market Research 
published a new report titled "Home 
Automation Market (Lighting, Safety 
and Security, Entertainment, HVAC, 
Energy Management) - Global Industry 
Analysis, Size, Share, Growth, Trends, 
and Forecast, 2013 - 2019", which is an 
extensive research study on the home 
automation and controls market. The 
report specifically analyzes the security 
control, access control, lighting control, 
HVAC control, outdoor control, 
entertainment control, and standards, 
data distribution, and other 
communication protocols. According to 
this report, the market was valued at 
US$3.6 billion in 2012 and is expected 
to reach US$16.4 billion by 2019, 
growing at a CAGR of 24.6% from 2013 
to 2019. 
LCD Monitor Market 
• With global shipments of LCD monitors 
expected to drop from 136 million in 
2014 to 132 million in 2015 and further 
to 128 million units in 2017, LCD 
monitor vendors are aiming to maintain 
their profits by producing larger-size, 
high-end units with a higher profit 
margin, including 27-, 28- and 32-inch 
units with Ultra HD resolution.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 9 
Fleet Management Market 
• Fleet Management Market will grow 
from $12.56 billion in 2014 to $35.35 
billion by 2019, at an estimated 
Compound Annual Growth Rate (CAGR) 
of 24.0% from 2014 to 2019. 
Flat Panel Industry 
LG 
Dot Display TV 
• LG Electronics Inc <066570.KS>, 
maker of expensive OLED display 
televisions, said it will supplement its 
line-up of next-generation TVs with 
sets using cheaper quantum dot display 
technology under a dual-track 
strategy. 
• The world's No.2 television maker after 
domestic rival Samsung Electronics Co 
Ltd, South Korea-based LG has been 
pushing OLED TVs as the next 
generation technology in concert with 
affiliate LG Display Co Ltd 
• "We are pursuing a dual-track strategy 
with quantum dot and OLED," LG 
Electronics Chief Financial Officer Jung 
Do-hyun told analysts on Wednesday. 
• Speculation that LG and Samsung 
would launch quantum dot televisions 
has intensified after Dow Chemical Co 
said it will build a new quantum dot 
plant in South Korea. Commercial 
production at the plant is expected to 
begin in the first half of 2015. 
AUO 
8.5G Facility 
• AU Optronics (AUO) has plans to 
allocate capital in 2015 to expanding 
production at 8.5G facilities for TV 
panel applications, according to 
industry sources. 
• Part of AUO's capex budget of 
NT$21.36 billion (US$700.5 million) 
passed by the company's board 
recently will be used to expand 
production capacity on 8.5G facilities by 
about 10,000 substrates a month from 
50,000 to 60,000 in the second half of 
2015. 
• The 8.5G line currently produces mostly 
55-, 43- and 21.5-inch panels, the 
sources said.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
• AUO witnessed shortages to certain 
! 10 
customers for some TV panel sizes 
during 2014, and the capex will allow 
AUO to expand production on relevant 
8.5G facilities to meet expected 
demand in 2015, the sources added. 
Innolux 
Acquriring a syndicated loan 
• Innolux is rumored to have issues 
acquiring a syndicated loan for NT$60 
billion (US$1.97 billion) recently 
because of debt issues of its ex-affiliate 
Chi Mei Lighting Technology, which 
declared bankruptcy in 2013. However, 
Innolux refuted the rumor and said the 
loan is still processing smoothly. 
• Innolux said that creditor banks have 
taken over Chi Mei following the firm's 
announcement of bankruptcy. The 
Bank of Taiwan is in charge of its 
syndicated loans application and the 
loans are not affected by the 
bankruptcy, added Innolux. 
SEL 
Folding Display 
• Semiconductor Energy Laboratory 
(SEL), demonstrated a display that can 
be folded in three. 
Flat Panel Market 
Small to Medium size LCD Production in 
China 
• The global proportion of small- to 
medium-size TFT LCD production 
capacity from China is expected to 
increase to 35% as of 2017, up from 
15.5% in 2011, according to Digitimes 
Research. In terms of large-size TFT 
LCD applications, China's global share 
will increase from 5.3% in 2011 to 
25.5% in 2017.The statistics include 
production from both China-based 
makers and international makers who 
have facilities in China. China-based 
makers will be responsible for 33% and 
17% of the global shipments of small-to 
medium-size and large-size LCD 
panels, respectively, in 2017. Their 
shipments to the two segments are 
expected to reach 130 million and 970 
million units in 2017, up 51% and 54% 
respectively compared to 2013. 
Open Cell TV Panels 
• Pricing for 32-inch open cell TV panels 
has increased US$1 to US$91 during 
the latter part of October while that for 
42-inch 60Hz open cell units also 
increased US$1 to US$140. 
• Shortages for TV panels sized 32- and 
39.5-inch are expected to remain 
throughout the end of October driven 
by strong demand from vendors. 
• In terms of monitor panels, sizes 19- 
and 19.5-inch are expected to increase 
US$0.10-0.40 due to steady demand in 
the commercial segment, according to 
DisplaySearch. 
• Meanwhile, industry sources recently 
noted that TV vendors are putting in 
increased orders for 43-, 48- and 49- 
inch Ultra HD TV panels in order to 
compete against 50-inch units. 
Ultra HD TV Panel Shipments 
• Ultra HD TV panel shipments 
meanwhile are expected to reach 17.83 
million units in 2014, up 475% on year, 
according to Digitimes Research. 
• The average of panel sizes shipped in 
2014 are estimated at 50.8-inch of 
Ultra HD TV and 39.8-inch for LCD TV. 
Large Size Panel Shipments in Taiwan 
• Taiwan makers' shipments of large-size 
TFT LCD panels sized 9-inch and above 
reached 67.92 million in the third 
quarter of 2014, up 0.6% on quarter 
and up 5.3% on year, according to 
Digitimes Research. 
• Innolux was a main driver of the overall 
increase, with TV panel shipments 
growing 17.7% in the quarter. The 
company also saw a 41% increase in 
Ultra HD TV panels.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 11 
• Taiwan panel makers' overall shipments 
of LCD TV panels grew 7.4% on 
quarter during the quarter to represent 
31% of total large-size panel 
shipments. 
• Additionally, Taiwan makers' monitor 
panel shipments declined 8.9% while 
notebook panel demand rebounded as 
Innolux received new orders as a result 
of LG Display shifting capacity to other 
applications, said Digitimes Research. 
Asia-Pasific Flexible Display Market 
• The Asia-Pacific flexible display market 
report defines and segments the 
concerned market in Asia-Pacific with 
analysis and forecast of revenue. This 
market was valued at $152.7 million in 
2013, and is expected to reach $864.3 
million by 2018, at a CAGR of 41.4 % 
from 2013 to 2018. 
European Flexible Display Market 
• The European flexible display market 
report defines and segments the 
concerned market in Europe with 
analysis and forecast of revenue. This 
market was valued at $226.4 million in 
2013, and is expected to reach $945.6 
million by 2018, at a CAGR of 33.1% 
from 2013 to 2018. 
Semiconductor Industry 
TI 
WLink 
• Texas Instruments (TI) (TXN) 
announced the WiLink™ 8 combo 
connectivity modules, which support 
Wi-Fi in the 2.4 and 5 GHz bands. The 
new highly-integrated module family 
offers high throughput and extended 
industrial temperature range with 
robust Wi-Fi + Bluetooth coexistence. 
WiLink 8 modules are perfect for 
power-optimized designs for home and 
building automation, smart energy, 
gateways, wireless audio, enterprise, 
wearables and many more industrial 
and Internet of Things (IoT) 
applications. The WiLink 8 modules and 
software are compatible and pre-integrated 
with many processors 
including TI's Sitara™ processors. The 
WiLink 8 family requires less hardware 
and RF design experience, Wi-Fi and 
Bluetooth software stacks and sample 
applications are provided, and the 
modules are FCC/IC/ETSI certified. 
Broadcom 
G.Fast Chips 
• Broadcom Corporation (BRCM), a global 
innovation leader in semiconductor 
solutions for wired and wireless 
communications, introduced advanced 
G.fast capabilities for its BCM63138 
gateway SoC to allow global telcos to 
deliver Gigabit-class services to 
subscribers. The new G.fast digital 
subscriber line (DSL) standard, capable 
of supporting data rates in excess of 
1Gbps with 106 MHz spectrum, 
augments Broadcom's telecom access 
portfolio to ensure carriers can deliver 
the fastest, most flexible and highest 
quality services to meet growing 
bandwidth and service needs.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
NXP 
Automotive Based NFC 
• Chipmaker NXP is opening up the large 
! 12 
field of automotive-based NFC 
applications - car sharing, Bluetooth 
and WiFi pairing, or personalisation of 
gadgets and settings in the vehicle. 
With a set of NFC products, NXP is 
laying the corner stone for an NFC-enabled 
ecosystem. 
SiTime 
Acquisition of Megachips Corp. 
• SiTime Corporation, a MEMS and 
analog semiconductor company, 
announced that it has signed a 
definitive agreement under 
which MegaChips Corporation (Tokyo 
Stock Exchange: 6875), a top 25 
fabless semiconductor company based 
in Japan, will acquire SiTime for $200 
million in cash. This transaction 
combines two complementary fabless 
semiconductor leaders that provide 
solutions for the growing Wearables, 
Mobile and Internet of Things markets. 
Semiconductor Market 
Global Semiconductor Market 
• Worldwide sales of semiconductors 
reached $87 billion during the third 
quarter of 2014, an increase of 5.7 per 
cent over the previous quarter and a 
jump of 8 per cent compared to the 
third quarter of 2013. 
• Third quarter sales outperformed the 
latest World Semiconductor Trade 
Statistics (WSTS) industry forecast. 
Global sales for the month of 
September 2014 reached $29 billion, 8 
per cent higher than the September 
2013 total of $26.9 billion and 1.9 per 
cent more than last month's total of 
$28.5 billion. 
DSL an G.Fast Chips Market 
• Consideration of DSL and G.fast chips 
market forecasts indicates that markets 
at $939 million will reach $4.7 billion by 
2020. Growth comes as every industry 
achieves leveraging broadband to make 
social media and smart phones work to 
grow the business. DSL and G.fast are 
able to make the benefits of broadband 
available to consumers and support 
network flexibility for the modern 
enterprise. DSL and G.fast networks 
are flexible and able to reach 
customers on the go. Broadband is 
used for video and entertainment 
delivery. 
Sensors Market 
• Propelled by the race between Apple 
and Samsung to enhance their mobile 
products with cutting-edge sensor 
technology, the market for sensors in 
cellphones and tablets is set to nearly 
triple from 2012 through 2018, 
according to research firm IHS. 
• Worldwide market revenue for sensors 
used in mobile handsets and media 
tablets will rise to $6.5 billion in 2018, 
up from $2.3 billion in 2012.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 13 
• The fastest-expanding portion of the 
mobile sensor segment will be 
emerging devices, whose revenue will 
surge to $2.3 billion in 2018, up from 
just $24 million in 2012. In 2013, this 
segment posted dramatic growth, with 
revenue rising to more than $500 
million. 
Asia Pasific Smart Sensor Market 
• The Asia-Pacific Smart Sensor Market 
report defines and segments the Smart 
sensor market in Asia-Pacific with 
analysis and forecast of revenue. This 
market was valued at $392.8 million in 
2013, and is expected to reach 
$3,065.5 million by 2018, at a CAGR of 
50.8% from 2013 to 2018. 
Magnetic Field Sensors Market 
• The market size of the magnetic field 
sensors market is expected to grow 
from the $1.6 Billion that it accounted 
for in 2013 to $2.9 Billion by 2020, at 
an estimated CAGR of 8.04% from 
2014 to 2020 
3D IC Market 
• The Global 3D IC market to grow at a 
CAGR of 18.4% over the period 2013- 
2018. 
• A 3D IC is an IC with multiple layers 
(more than two) of active electronic 
components which are integrated into a 
single circuit. These layers are 
integrated both vertically and 
horizontally. 3D ICs are the perfect 
solution for meeting the growing 
demand to minimize the size and 
reduce the cost of products in the 
Consumer Electronics segment. The 
transistor density is greater in 3D ICs 
than that in other ICs, which means 
that 3D ICs offer better performance. 
3D technology emerged as a result of 
the continuous advancements being 
made in IC design. Some of the major 
applications of 3D ICs are in memory 
products (flash and DRAM), sensors, 
LEDs, and MEMS systems. 
Software Industry 
Google 
Modular Smartphone Project – Project Ara 
• Drawing inspiration from its Play Store, 
Google will create a hardware store in 
which users can buy and sell Lego-like 
hardware modules for the customizable 
Project Ara smartphone. 
• Project Ara is Google’s upcoming build-your- 
own smartphone that allows users 
to mix and match features. The $50 
configurable smartphone will come with 
a basic frame, and users can add or 
remove features by simply snapping on 
or taking off modular parts. 
Avquisition of Revolv 
• Google Inc. (GOOG) added home-automation 
device maker Revolv Inc. to 
its portfolio of companies as the search 
provider pushes deeper into the 
business of making houses more 
intelligent.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
Service Industry 
Service Market 
Pay TV Market 
• The worldwide Pay TV market is 
! 14 
expected to surpass 920 million 
subscribers by the end of 2014. 
Overall, Pay TV average revenue per 
user (ARPU) is expected to drop slightly 
due to increasing price competition, but 
at a lower rate compared to the ARPU 
drop in 2013. “The growing number of 
HD subscribers as well as major 
sporting events such as the World Cup 
2014 have contributed to improving 
ARPU. As a result, the total Pay TV 
market is expected to generate over 
$US269 billion by the end of 2014,” 
commented Jake Saunders, VP and 
Practice Director of Core Forecasting. 
Retail and Payment Industry 
Verifone 
New Secure Commerce Architecture 
• Verifone recently announced the global 
availability of its secure commerce 
architecture, designed to significantly 
reduce merchant exposure to large-scale 
data breaches, and reduce the 
certification burden on U.S. merchants, 
acquirers and other payment providers 
looking to enable EMV acceptance. 
Payment as a service to Turkish Airlines 
• Verifone announced recently that its 
complete Payment as a Service solution 
has been selected by Turkish Airlines to 
meet the needs of its 6,000 ticketing 
offices and agencies. Verifone will 
provide a single-source solution, 
including help desk, field services, 
hosting, and hardware and software 
services. 
• Payment as a Service from Verifone 
provides Turkish Airlines maximum 
flexibility while alleviating the burden of 
integration, management and cost 
volatility. Turkish Airlines originally 
leveraged the platform in its own 
ticketing offices before expanding the 
deployment to its agencies this past 
summer. The initial deployment of 
1,000 offices is expected to grow to a 
total of more than 6,000. 
Ingenico 
MPOS solution by Roam 
• ROAM, part of Ingenico Mobile 
Solutions and the leading mobile 
commerce platform provider, launched 
today the latest version of its mobile 
point of sale (mPOS) application, 
ROAMpay X5. This new version 
features a completely redesigned User 
Interface (UI) and is the first and only 
native tablet application for both iOS 
and Android that supports all mobile 
payment transaction types and all
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 15 
acceptance methods: magstripe, NFC, 
EMV chip & PIN, and EMV chip & sign. 
This application will be compatible with 
any Ingenico mPOS devices, including 
the iCMP. 
Telium Tetra 
• Ingenico Group, 
(Euronext:FR0000125346 - ING), global 
leader in seamless payment, unveiled 
its new comprehensive global 
offer, Telium Tetra, creating a fully 
integrated commerce ecosystem 
around the Point of Sale. 
Apple 
ApplePay 
• Apple CEO Tim Cook said Apple's new 
mobile payment system had over 1 
million activations in the first three days 
after it became available, and is now 
more widely used than any competing 
payment system. 
Powa 
Cooperation with Worldline 
• Worldline [Euronext:WLN], a European 
leader in the payments and 
transactional services industry, 
announces its reseller partnership 
with Powa Technologies, an 
international commerce specialist. With 
this agreement, Worldline becomes a 
preferred reseller of PowaPOS solutions 
in Europe, Middle East and Africa, 
offering the powerful and pioneering 
PowaPOS T25 and PowaPIN mPOS 
solutions to extend its cross-channel 
payment terminals range for merchants 
and banks. 
Casio 
Partnership with MicroSale 
• Casio America, Inc., a leading point-of-sale 
(POS) system supplier, announced 
its partnership with MicroSale to help 
quick service restaurants streamline 
costs and increase efficiency. Casio 
enlisted MicroSale, a restaurant 
software company, to create a feature-rich 
software application called TabPOS 
for its portfolio of Android™-based POS 
systems including the V-R100, V-R7000 
and V-R7100. 
Poynt 
New Payment solution 
• Poynt, the startup run by former 
Google and PayPal executive Osama 
Bedier, said it signed two of the largest 
payment processors to distribute its 
new payments terminal to small 
retailers, restaurants and other 
businesses. 
Mastercard 
Acquisition of TNS 
• Following a good third-quarter 
2014, MasterCard Inc. (MA) announced 
a pact with Transaction Network 
Services (:TNS) to acquire the latter’s 
Payment Gateway Services business for 
an undisclosed value and terms. The 
deal is expected to culminate by the 
end of this year. 
• TNS Payment Gateway Services offers 
premier services related to data 
communications, payment processing 
and interoperability solutions through 
its core businesses, namely, 
eCommerce gateway and card-present 
gateway. Its data network functions on 
multi-channel platforms and supports 
an array of extensively recognized 
communications protocols, thereby 
benefiting from the large scale and 
accessibility of its services.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
First Data 
Clover Mobile Solution 
• First Data, the global leader in payment 
! 16 
technology and services solutions, 
unveils Clover™ Mobile, a powerful new 
mobile point-of-sale (POS) business 
solution that brings new flexibility and 
versatility to the Clover family. Clover 
Mobile enables more personal 
consumer engagement for innovative 
small- to mid-sized businesses by 
taking the functionality of the popular 
Clover Station off the counter and on to 
the floor. 
• Armed with Clover Mobile, merchants 
can place orders, take secure 
payments, scan inventory, clock in 
employees, sync sales data with their 
accounting packages and generate 
marketing insights that can lead to 
stronger, enduring customer 
relationships, all with a portable, tablet-sized 
device. This means restaurants 
can accept payment at the table; 
retailers can use it for line-busting at 
busy times; brick and mortar stores can 
use it as a full-featured payment and 
business solution; and on-the-go 
merchants can use the device for their 
mobile needs. 
OTI 
Payment cooperation with Canatolpue 
• On Track Innovations 
Ltd. (oti) (NASDAQ: OTIV), a global 
provider of near field communication 
(NFC) and cashless payment solutions, 
and Cantaloupe Systems, Inc., the 
vending industry's premier provider of 
cloud-based, mobile technologies, have 
confirmed oti's NFC contactless Saturn 
6500 readers integrated in 
Cantaloupe's Seed Cashless™ solutions 
will accept payment made by 
consumers using Apple Pay. 
Energy Industry 
Energy Market 
Smart Bulb Shipments 
• Connected LED or "smart" light bulbs 
may still be a developing market 
concept, with shipments totaling fewer 
than 2.5 million units in 2013, but a 
new ABI Research report reveals that a 
number of factors will help drive an 
increase in shipments. 
• The research firm said that the advent 
of declining LED prices and the 
emerging ZigBee Light Link standard 
being embraced by the largest lighting 
manufacturers such as Philips, GE and 
OSRAM mean that annual smart bulb 
shipments are set to increase to 223 
million by 2020, achieving a total 
installed base of over 400 million.
! BUSINESS & TECHNOLOGY INNOVATION REPORT 
! 17 
References 
Flipboard 
• if you want to reach the details of the 
news in the report, you can follow the 
recent report on web via 
https://flipboard.com/profile/ferhatunlu 
kal and/or download flipboard 
application from Apple store, Google 
Play, Windows Store and Blackberry 
World and reach all reports and details 
on your smart mobile devices.

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W43 44 45_oct_nov2014

  • 1. 2014 BUSINESS & TECHNOLOGY INNOVATION REPORT Week 43/44/45 Prepared by Ferhat Ünlükal 11/09/2014
  • 2. ! BUSINESS & TECHNOLOGY INNOVATION REPORT BUSINESS & TECHNOLOGY INNOVATION REPORT Week 43/44/45 Headlines Consumer Electronics (CE) • Samsung announced that it acquired ! 2 Proximal Data. • Panasonic Corp. plans to sell subsidiary Sanyo's North American television set business to Funai Electric. • TV vendors aim to ship 34 million Ultra HD TVs in 2015. • OLED TV pricing is expected to remain double that of Ultra HD TVs through 2016. • The public flat panel display market is expected to grow 14% in 2014 and 27% in 2015 • Global curved televisions could grow at a tremendous CAGR of 96.7% between 2013 and 2019. • Samsung Electronics Co. and LG Electronics Inc. are expected to sell a combined 81.5 million liquid crystal display (LCD) TVs this year, taking up about 38% of the global market. • Taiwan makers' shipments of LCD TVs are expected to reach 19.69 million during the second half of 2014. ICT • LG smartphones usually have used third-party processors, but the company has become its own chip supplier, announcing the LG Nuclun. • Chinese mobile phone manufacturer Xiaomi will invest $1 billion in TV and video content. • The amount of traffic flowing through the world’s data centers is set to treble in the next four years. • Foxconn is looking a closer look at the Philippines. • The server joint venture set up by Hewlett-Packard (HP) and Foxconn Electronics has begun to exercise its muscle to solicit data-center server orders from Microsoft, Facebook and Amazon. • Foxconn is considering investing in a new factory. • The AllSeen Alliance announced that nine new companies have joined the initiative. • Connected-home device shipments will grow at a compound annual rate of 67% over the next five years. • Global shipments of tablets in the third quarter of 2014 rebounded to quarterly growth thanks to inventory preparation for the traditional high season. Shipments reached 63.4 million units. • Home Automation market was valued at US$3.6 billion in 2012 and is expected to reach US$16.4 billion by 2019, growing at a CAGR of 24.6% from 2013 to 2019. • With global shipments of LCD monitors expected to drop from 136 million in 2014 to 132 million in 2015 and further to 128 million units in 2017. • Fleet Management Market will grow from $12.56 billion in 2014 to $35.35 billion by 2019 Flat Panel Industry • LG said it will supplement its line-up of next-generation TVs with sets using cheaper quantum dot display technology. • AUO has plans to allocate capital in 2015 to expanding production at 8.5G facilities for TV panel applications. • Innolux is rumored to have issues acquiring a syndicated loan for NT$60 billion (US$1.97 billion).
  • 3. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 3 • Semiconductor Energy Laboratory (SEL), demonstrated a display that can be folded in three. • The global proportion of small- to medium-size TFT LCD production capacity from China is expected to increase to 35% as of 2017. • Pricing for 32-inch open cell TV panels has increased US$1 to US$91. • Ultra HD TV panel shipments meanwhile are expected to reach 17.83 million units in 2014. • Taiwan makers' shipments of large-size TFT LCD panels sized 9-inch and above reached 67.92 million in the third quarter of 2014. • Asia Pasific Flexible display market was valued at $152.7 million in 2013, and is expected to reach $864.3 million by 2018, at a CAGR of 41.4 % from 2013 to 2018. • European Flexible display market was valued at $226.4 million in 2013, and is expected to reach $945.6 million by 2018, at a CAGR of 33.1% from 2013 to 2018. Semiconductor Industry • Texas Instruments (TI) (TXN) announced the WiLink™ 8 combo connectivity modules. • Broadcom introduced advanced G.fast capabilities for its BCM63138 gateway SoC. • NXP is opening up the large field of automotive-based NFC applications. • SiTime Corporation announced that it has signed a definitive agreement under which MegaChips Corporation will acquire SiTime for $200 million in cash. • Worldwide sales of semiconductors reached $87 billion during the third quarter of 2014. • Consideration of DSL and G.fast chips market forecasts indicates that markets at $939 million will reach $4.7 billion by 2020. • Worldwide market revenue for sensors used in mobile handsets and media tablets will rise to $6.5 billion in 2018. • The Asia Pasific Sensor market was valued at $392.8 million in 2013, and is expected to reach $3,065.5 million by 2018, at a CAGR of 50.8% from 2013 to 2018. • The market size of the magnetic field sensors market is expected to grow from the $1.6 Billion that it accounted for in 2013 to $2.9 Billion by 2020. • The Global 3D IC market to grow at a CAGR of 18.4% over the period 2013- 2018. Software Industry • Google will create a hardware store in which users can buy and sell Lego-like hardware modules for the customizable Project Ara smartphone. • Google Inc. (GOOG) added home-automation device maker Revolv Inc. Service Industry • The worldwide Pay TV market is expected to surpass 920 million subscribers by the end of 2014. Retail and Payment Industry • Verifone recently announced the global availability of its secure commerce architecture. • Verifone announced recently that its complete Payment as a Service solution has been selected by Turkish Airlines. • ROAM launched today the latest version of its mobile point of sale (mPOS) application, ROAMpay X5. • Ingenico Group unveiled its new comprehensive global offer, Telium Tetra. • Apple CEO Tim Cook said Apple's new mobile payment system had over 1 million activations in the first three days. • Worldline announces its reseller partnership with Powa Technologies. • Casio America, Inc., a leading point-of-sale (POS) system supplier, announced its partnership with MicroSale.
  • 4. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 4 • Poynt said it signed two of the largest payment processors. • MasterCard Inc. (MA) announced a pact with Transaction Network Services (:TNS) to acquire the latter’s Payment Gateway Services business. • First Data unveils Clover™ Mobile, a powerful new mobile point-of-sale (POS) business solution that brings new flexibility and versatility to the Clover family. • On Track Innovations Ltd. (oti) and Cantaloupe Systems, Inc., have confirmed oti's NFC contactless Saturn 6500 readers integrated in Cantaloupe's Seed Cashless. Energy Industry • The annual smart bulb shipments are set to increase to 223 million by 2020, achieving a total installed base of over 400 million. Consumer Electronics (CE) Samsung Acquisition of Proximal Data • Samsung Electronics Co. Ltd., a world leader in advanced semiconductor solutions, announced that it acquired Proximal Data, Inc., a San Diego, California-based pioneer of server-side caching software with I/O intelligence that work within virtualized systems. Panasonic Selling Sanyo’s North American TV Business • Japanese consumer electronics giant Panasonic Corp. (PCRFY.PK, PCRFF.PK) plans to sell subsidiary Sanyo's North American television set business to Funai Electric, Nikkei reported citing people familiar with matter. • Panasonic and Funai Electric are expected to agree on the value of the deal by the end of this year, after discussing specific terms. The sale of the unit will likely be completed by the end of March, the paper said. • Sanyo is struggling in North America because of fierce price competition from Chinese rivals. CE Market UltraHD TV • TV vendors aim to ship 34 million Ultra HD TVs in 2015, up 120% on year, according to supply chain sources. • China is expected to be the largest market during the year and demand for sizes 50-inch and above is expected to continue climbing. • Vendors will continue to pursue wide color gamut technology that provides viewing experiences on par with OLED, the makers said. • Meanwhile, Digitimes Research noted that Skyworth has increased its sales proportion of Ultra HD TVs in the China market from 12% in May 2014 to 15%
  • 5. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 5 in September, and also held a 27% proportion during the October 1 period. OLED TV • OLED TV pricing is expected to remain double that of Ultra HD TVs through 2016, which will influence the 120% on-year expected growth in Ultra HD TV shipments in 2015, according to Digitimes Research. • More than half of the Ultra HD TVs shipped throughout 2016 are expected to go to the China market where low-priced units will drive most of the demand. • Ultra HD TV panel shipments meanwhile are expected to reach 17.83 million units in 2014, up 475% on year, according to Digitimes Research. • The average of panel sizes shipped in 2014 are estimated at 50.8-inch of Ultra HD TV and 39.8-inch for LCD TV. Public Flat Panel Display • The global large-screen public flat-panel display (FPD) market is rebounding after declines in 2012 and flat growth in 2013. According to DisplaySearch, the market is expected to grow 14% in 2014 and 27% in 2015, as economies gradually recover from the global economic downturn. Curved Televisions • "Curved Televisions Market (By Screen Size - Large-sized Curved Televisions, Mid-sized Curved Televisions and Small-sized Curved Televisions) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019", states that global curved televisions could grow at a tremendous CAGR of 96.7% between 2013 and 2019, and the market is poised to be worth US$ 8.4 billionby 2019. This market valued mere US$ 0.14 billion in 2013. An innovative design and enhanced features of curved television sets are the major factors driving their global demand from residential as well as commercial sectors. South Korean Players • South Korean tech giants Samsung Electronics Co. and LG Electronics Inc. are expected to sell a combined 81.5 million liquid crystal display (LCD) TVs this year, taking up about 38% of the global market, a market tracker said Sunday. • Samsung, also the world's largest smartphone maker, will likely ship 48 million units of LCD TVS this year worldwide, up 11% from the previous year, South Korean News Agency (Yonhap) reported Display Search as saying. • LG, Samsung's domestic rival, is forecast to sell 33.5 million LCD TVs in the global market in 2015, up 15% from a year earlier. • The combined market share of Samsung and LG, the top two global sellers of LCD TVs, is likely to reach 37.5% this year, compared with 34.8% last year, Display Search said. • Their share of the global LCD TV market has been on the rise in recent years with the figure coming to 30% in 2010, 30.8% in 2011 and 33.2% in 2012. • Display Search said Samsung and LG have raised their LCD TV sales targets this year amid strong shipments of some models. • TCL of China will likely become the world's third-largest vendor of LCD TVs this year with 14.3 million units, followed by Sony of Japan with 12.5 million units, Display Search said. • In terms of revenue, the two companies are expected to chalk up a combined LCD TV market share of more than 45% this year, it added. • A total of 217 million LCD TVS are expected to be sold across the world this year, up about 5% from the previous year, according to Display Search.
  • 6. ! BUSINESS & TECHNOLOGY INNOVATION REPORT Taiwan Makers LCD TV shipments • Taiwan makers' shipments of LCD TVs ! 6 are expected to reach 19.69 million during the second half of 2014, up 6.4% on year, according to Digitimes Research. • Shipments reached 8.72 million in the second quarter of the year, up 15.7% from 7.53 million in the first quarter. During the second quarter 45.1% of shipments went to North America while 26.1% went to vendors in Asia. TVs sized 50-inch and above accounted for 16.9% of the makers' shipments while that for 32-inch units dropped below 30%, indicating increasing demand for larger-size TVs, said Digitimes Research. • TPV, Foxconn Electronics and Wistron were the leading makers in the second quarter, with Wistron increasing shipements to Vizio and to Xiaomi. Compal meanwhile expected strong shipments to Toshiba and Amtran decreased shipments to Vizio. • Moving into the second half of the year, the Taiwan makers can expect to see sequential growth of 10% and 5.3% in the third and fourth quarters respectively. Nearly 20% of shipments will be for 50-inch and larger sizes and vendors in Europe and North America will make up about a 25% customer proportion. TPV will hold a 48% share in the second half while the three main makers will hold a 79.4% share. • For 2014, Digitimes Research expects LCD TV shipments from OEMs to reach 47.05 million globally. Taiwan makers will account for 35.93 million, up 5.1% on year. ICT Industry LG Own Designed Smartphone Chip • LG smartphones usually have used third-party processors, mostly from Qualcomm, but the company has become its own chip supplier, announcing the LG Nuclun, an eight-core ARM processor. • The Nuclun makes its debut in LG's new G3 Screen phablet and will likely appear in other devices as well. LG has made no official statement but given the engineering that went into this chip they aren't going to use it in just one device, although they picked the right device to start. • The LG G3 Screen is a 5.9-inch phablet exclusive to Korea with a full HD display and a 13 megapixel rear camera with optical image stabilization. For a chip like this, a phablet makes sense, since they are often laptop replacements. Xiaomi Investment in TV and video content • Chinese mobile phone manufacturer Xiaomi will invest $1 billion in TV and video content and has hired Chen Tong, a leading Internet executive from the online firm Sina, to oversee the fund. Cisco Datacenter Traffic • The amount of traffic flowing through the world’s data centers is set to treble in the next four years, with the vast majority of this (76 percent) will being cloud-based traffic, says Cisco Systems Inc. in its annual Cloud Index study. • Cisco forecasts strong growth in the amount of cloud traffic, cloud storage and cloud workloads, with private cloud use being significantly larger than that of public cloud. As for overall data
  • 7. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 7 center traffic, this will grow to some 8.6 zettabytes a year in 2018, up from 3.1 zettabytes in 2013, amounting to 23 percent annual growth. To get an idea of the sheer amount of data, Cisco says 8.6 zettabytes is roughly equivalent to streaming all of the movies and TV shows ever made in 4K resolution over 250,000 times. • Cisco says increased Internet access and consumer cloud usage will be two of the main factors contributing to this growth. According to the United Nations, the world’s population will reach 7.6 billion by 2018, and 50 percent will have Internet access at home, with half of those also using personal cloud services. Foxconn Investment potential in Philippines • Foxconn Technology Group, the world’s largest computer manufacturer and supplier to Apple Inc., is looking a closer look at the Philippines as company officials visited various economic zones in the country. • Amadeo R. Perez Jr., chairman of the Manila Economic and Cultural Office (MECO), told reporters that Foxconn officials came over three months ago and were brought to various ecozones, including the country’s Freeport zones Subic and Clark, and Calabarzon areas such as Batangas, Laguna and Cavite. Server JV with HP • The server joint venture set up by Hewlett-Packard (HP) and Foxconn Electronics has begun to exercise its muscle to solicit data-center server orders from Microsoft, Facebook and Amazon, a trend which will intensify competition in the server segment in 2015, according to industry sources. • HP and Foxconn signed the non-equity joint venture agreement in May 2014, aiming to optimize their expertise and technologies related to cloud computing to respond promptly to client needs for ever-changing cloud solutions, according to sources at Foxconn. • Meanwhile, HP's decision to separate its hardware and software business and the fast-growing cloud services and data center business have prompted HP to step into the data-center server sector, said the industry sources. • The HP-Foxconn joint venture is expected to affect operations of brand vendors such as Dell, white-box server suppliers Quanta Computer and Wiwynn (Wistron), as well as ODMs such as Inventec and Mitac International, said the sources. Investment in a new factory • Foxconn, the major manufacturer that assembles computing devices for companies like Apple and Microsoft, is considering investing in a new factory, a report claims. • Foxconn and Zhengzhou government officials in north central China are in preliminary talks over the possibility of investing in a major factory that would focus solely on the manufacturing of displays, the Wall Street Journal reported Thursday, citing people who claim to have knowledge of the talks. The total investment could reach as high as $5.7 billion, which would make it the largest in Foxconn's history. AllSeen Alliance New Members • The AllSeen Alliance, a cross-industry collaboration to advance the Internet of Everything through an open source software project, announced that nine new companies have joined the initiative -- dog hunter, FengLian, ForgeRock®, INSTEON, MobilityLab, NETGEAR, Organic Response, Quanta Computer and VeriSign, Inc. With the
  • 8. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 8 addition of these new members the Alliance totals 80 companies and 12 sponsored members. ICT Market Connected Home Device Shipments • Connected-home device shipments will grow at a compound annual rate of 67% over the next five years, much faster than smartphone or tablet device growth, and hit 1.8 billion units shipped in 2019, according to BI Intelligence estimates. Connected-home devices include all smart appliances (washers, dryers, refrigerators, etc.), safety and security systems (internet-connected sensors, monitors, cameras, and alarm systems), and energy equipment like smart thermostats and smart lighting. • The connected-home category will make up about 25% of shipments within the broader Internet of Things category this year, but that share will increase gradually to roughly 27% in 2019 based on our forecast, as growth in other IoT areas picks up. • Connected-home device sales will drive over $61 billion in revenue this year. That number will climb at a 52% compound annual growth rate to reach $490 billion in 2019. Tablet Shipments Market • Global shipments of tablets in the third quarter of 2014 rebounded to quarterly growth thanks to inventory preparation for the traditional high season. Shipments reached 63.4 million units, up only 1% from the same period last year according to estimates from Digitimes Research. The tablet market matured earlier than expected with the iPad and white-box tablets both failing to show significant shipment growth. Total third quarter iPad shipments were merely 15 million units, up 6.4% on quarter. Home Automation Market • Transparency Market Research published a new report titled "Home Automation Market (Lighting, Safety and Security, Entertainment, HVAC, Energy Management) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2013 - 2019", which is an extensive research study on the home automation and controls market. The report specifically analyzes the security control, access control, lighting control, HVAC control, outdoor control, entertainment control, and standards, data distribution, and other communication protocols. According to this report, the market was valued at US$3.6 billion in 2012 and is expected to reach US$16.4 billion by 2019, growing at a CAGR of 24.6% from 2013 to 2019. LCD Monitor Market • With global shipments of LCD monitors expected to drop from 136 million in 2014 to 132 million in 2015 and further to 128 million units in 2017, LCD monitor vendors are aiming to maintain their profits by producing larger-size, high-end units with a higher profit margin, including 27-, 28- and 32-inch units with Ultra HD resolution.
  • 9. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 9 Fleet Management Market • Fleet Management Market will grow from $12.56 billion in 2014 to $35.35 billion by 2019, at an estimated Compound Annual Growth Rate (CAGR) of 24.0% from 2014 to 2019. Flat Panel Industry LG Dot Display TV • LG Electronics Inc <066570.KS>, maker of expensive OLED display televisions, said it will supplement its line-up of next-generation TVs with sets using cheaper quantum dot display technology under a dual-track strategy. • The world's No.2 television maker after domestic rival Samsung Electronics Co Ltd, South Korea-based LG has been pushing OLED TVs as the next generation technology in concert with affiliate LG Display Co Ltd • "We are pursuing a dual-track strategy with quantum dot and OLED," LG Electronics Chief Financial Officer Jung Do-hyun told analysts on Wednesday. • Speculation that LG and Samsung would launch quantum dot televisions has intensified after Dow Chemical Co said it will build a new quantum dot plant in South Korea. Commercial production at the plant is expected to begin in the first half of 2015. AUO 8.5G Facility • AU Optronics (AUO) has plans to allocate capital in 2015 to expanding production at 8.5G facilities for TV panel applications, according to industry sources. • Part of AUO's capex budget of NT$21.36 billion (US$700.5 million) passed by the company's board recently will be used to expand production capacity on 8.5G facilities by about 10,000 substrates a month from 50,000 to 60,000 in the second half of 2015. • The 8.5G line currently produces mostly 55-, 43- and 21.5-inch panels, the sources said.
  • 10. ! BUSINESS & TECHNOLOGY INNOVATION REPORT • AUO witnessed shortages to certain ! 10 customers for some TV panel sizes during 2014, and the capex will allow AUO to expand production on relevant 8.5G facilities to meet expected demand in 2015, the sources added. Innolux Acquriring a syndicated loan • Innolux is rumored to have issues acquiring a syndicated loan for NT$60 billion (US$1.97 billion) recently because of debt issues of its ex-affiliate Chi Mei Lighting Technology, which declared bankruptcy in 2013. However, Innolux refuted the rumor and said the loan is still processing smoothly. • Innolux said that creditor banks have taken over Chi Mei following the firm's announcement of bankruptcy. The Bank of Taiwan is in charge of its syndicated loans application and the loans are not affected by the bankruptcy, added Innolux. SEL Folding Display • Semiconductor Energy Laboratory (SEL), demonstrated a display that can be folded in three. Flat Panel Market Small to Medium size LCD Production in China • The global proportion of small- to medium-size TFT LCD production capacity from China is expected to increase to 35% as of 2017, up from 15.5% in 2011, according to Digitimes Research. In terms of large-size TFT LCD applications, China's global share will increase from 5.3% in 2011 to 25.5% in 2017.The statistics include production from both China-based makers and international makers who have facilities in China. China-based makers will be responsible for 33% and 17% of the global shipments of small-to medium-size and large-size LCD panels, respectively, in 2017. Their shipments to the two segments are expected to reach 130 million and 970 million units in 2017, up 51% and 54% respectively compared to 2013. Open Cell TV Panels • Pricing for 32-inch open cell TV panels has increased US$1 to US$91 during the latter part of October while that for 42-inch 60Hz open cell units also increased US$1 to US$140. • Shortages for TV panels sized 32- and 39.5-inch are expected to remain throughout the end of October driven by strong demand from vendors. • In terms of monitor panels, sizes 19- and 19.5-inch are expected to increase US$0.10-0.40 due to steady demand in the commercial segment, according to DisplaySearch. • Meanwhile, industry sources recently noted that TV vendors are putting in increased orders for 43-, 48- and 49- inch Ultra HD TV panels in order to compete against 50-inch units. Ultra HD TV Panel Shipments • Ultra HD TV panel shipments meanwhile are expected to reach 17.83 million units in 2014, up 475% on year, according to Digitimes Research. • The average of panel sizes shipped in 2014 are estimated at 50.8-inch of Ultra HD TV and 39.8-inch for LCD TV. Large Size Panel Shipments in Taiwan • Taiwan makers' shipments of large-size TFT LCD panels sized 9-inch and above reached 67.92 million in the third quarter of 2014, up 0.6% on quarter and up 5.3% on year, according to Digitimes Research. • Innolux was a main driver of the overall increase, with TV panel shipments growing 17.7% in the quarter. The company also saw a 41% increase in Ultra HD TV panels.
  • 11. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 11 • Taiwan panel makers' overall shipments of LCD TV panels grew 7.4% on quarter during the quarter to represent 31% of total large-size panel shipments. • Additionally, Taiwan makers' monitor panel shipments declined 8.9% while notebook panel demand rebounded as Innolux received new orders as a result of LG Display shifting capacity to other applications, said Digitimes Research. Asia-Pasific Flexible Display Market • The Asia-Pacific flexible display market report defines and segments the concerned market in Asia-Pacific with analysis and forecast of revenue. This market was valued at $152.7 million in 2013, and is expected to reach $864.3 million by 2018, at a CAGR of 41.4 % from 2013 to 2018. European Flexible Display Market • The European flexible display market report defines and segments the concerned market in Europe with analysis and forecast of revenue. This market was valued at $226.4 million in 2013, and is expected to reach $945.6 million by 2018, at a CAGR of 33.1% from 2013 to 2018. Semiconductor Industry TI WLink • Texas Instruments (TI) (TXN) announced the WiLink™ 8 combo connectivity modules, which support Wi-Fi in the 2.4 and 5 GHz bands. The new highly-integrated module family offers high throughput and extended industrial temperature range with robust Wi-Fi + Bluetooth coexistence. WiLink 8 modules are perfect for power-optimized designs for home and building automation, smart energy, gateways, wireless audio, enterprise, wearables and many more industrial and Internet of Things (IoT) applications. The WiLink 8 modules and software are compatible and pre-integrated with many processors including TI's Sitara™ processors. The WiLink 8 family requires less hardware and RF design experience, Wi-Fi and Bluetooth software stacks and sample applications are provided, and the modules are FCC/IC/ETSI certified. Broadcom G.Fast Chips • Broadcom Corporation (BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, introduced advanced G.fast capabilities for its BCM63138 gateway SoC to allow global telcos to deliver Gigabit-class services to subscribers. The new G.fast digital subscriber line (DSL) standard, capable of supporting data rates in excess of 1Gbps with 106 MHz spectrum, augments Broadcom's telecom access portfolio to ensure carriers can deliver the fastest, most flexible and highest quality services to meet growing bandwidth and service needs.
  • 12. ! BUSINESS & TECHNOLOGY INNOVATION REPORT NXP Automotive Based NFC • Chipmaker NXP is opening up the large ! 12 field of automotive-based NFC applications - car sharing, Bluetooth and WiFi pairing, or personalisation of gadgets and settings in the vehicle. With a set of NFC products, NXP is laying the corner stone for an NFC-enabled ecosystem. SiTime Acquisition of Megachips Corp. • SiTime Corporation, a MEMS and analog semiconductor company, announced that it has signed a definitive agreement under which MegaChips Corporation (Tokyo Stock Exchange: 6875), a top 25 fabless semiconductor company based in Japan, will acquire SiTime for $200 million in cash. This transaction combines two complementary fabless semiconductor leaders that provide solutions for the growing Wearables, Mobile and Internet of Things markets. Semiconductor Market Global Semiconductor Market • Worldwide sales of semiconductors reached $87 billion during the third quarter of 2014, an increase of 5.7 per cent over the previous quarter and a jump of 8 per cent compared to the third quarter of 2013. • Third quarter sales outperformed the latest World Semiconductor Trade Statistics (WSTS) industry forecast. Global sales for the month of September 2014 reached $29 billion, 8 per cent higher than the September 2013 total of $26.9 billion and 1.9 per cent more than last month's total of $28.5 billion. DSL an G.Fast Chips Market • Consideration of DSL and G.fast chips market forecasts indicates that markets at $939 million will reach $4.7 billion by 2020. Growth comes as every industry achieves leveraging broadband to make social media and smart phones work to grow the business. DSL and G.fast are able to make the benefits of broadband available to consumers and support network flexibility for the modern enterprise. DSL and G.fast networks are flexible and able to reach customers on the go. Broadband is used for video and entertainment delivery. Sensors Market • Propelled by the race between Apple and Samsung to enhance their mobile products with cutting-edge sensor technology, the market for sensors in cellphones and tablets is set to nearly triple from 2012 through 2018, according to research firm IHS. • Worldwide market revenue for sensors used in mobile handsets and media tablets will rise to $6.5 billion in 2018, up from $2.3 billion in 2012.
  • 13. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 13 • The fastest-expanding portion of the mobile sensor segment will be emerging devices, whose revenue will surge to $2.3 billion in 2018, up from just $24 million in 2012. In 2013, this segment posted dramatic growth, with revenue rising to more than $500 million. Asia Pasific Smart Sensor Market • The Asia-Pacific Smart Sensor Market report defines and segments the Smart sensor market in Asia-Pacific with analysis and forecast of revenue. This market was valued at $392.8 million in 2013, and is expected to reach $3,065.5 million by 2018, at a CAGR of 50.8% from 2013 to 2018. Magnetic Field Sensors Market • The market size of the magnetic field sensors market is expected to grow from the $1.6 Billion that it accounted for in 2013 to $2.9 Billion by 2020, at an estimated CAGR of 8.04% from 2014 to 2020 3D IC Market • The Global 3D IC market to grow at a CAGR of 18.4% over the period 2013- 2018. • A 3D IC is an IC with multiple layers (more than two) of active electronic components which are integrated into a single circuit. These layers are integrated both vertically and horizontally. 3D ICs are the perfect solution for meeting the growing demand to minimize the size and reduce the cost of products in the Consumer Electronics segment. The transistor density is greater in 3D ICs than that in other ICs, which means that 3D ICs offer better performance. 3D technology emerged as a result of the continuous advancements being made in IC design. Some of the major applications of 3D ICs are in memory products (flash and DRAM), sensors, LEDs, and MEMS systems. Software Industry Google Modular Smartphone Project – Project Ara • Drawing inspiration from its Play Store, Google will create a hardware store in which users can buy and sell Lego-like hardware modules for the customizable Project Ara smartphone. • Project Ara is Google’s upcoming build-your- own smartphone that allows users to mix and match features. The $50 configurable smartphone will come with a basic frame, and users can add or remove features by simply snapping on or taking off modular parts. Avquisition of Revolv • Google Inc. (GOOG) added home-automation device maker Revolv Inc. to its portfolio of companies as the search provider pushes deeper into the business of making houses more intelligent.
  • 14. ! BUSINESS & TECHNOLOGY INNOVATION REPORT Service Industry Service Market Pay TV Market • The worldwide Pay TV market is ! 14 expected to surpass 920 million subscribers by the end of 2014. Overall, Pay TV average revenue per user (ARPU) is expected to drop slightly due to increasing price competition, but at a lower rate compared to the ARPU drop in 2013. “The growing number of HD subscribers as well as major sporting events such as the World Cup 2014 have contributed to improving ARPU. As a result, the total Pay TV market is expected to generate over $US269 billion by the end of 2014,” commented Jake Saunders, VP and Practice Director of Core Forecasting. Retail and Payment Industry Verifone New Secure Commerce Architecture • Verifone recently announced the global availability of its secure commerce architecture, designed to significantly reduce merchant exposure to large-scale data breaches, and reduce the certification burden on U.S. merchants, acquirers and other payment providers looking to enable EMV acceptance. Payment as a service to Turkish Airlines • Verifone announced recently that its complete Payment as a Service solution has been selected by Turkish Airlines to meet the needs of its 6,000 ticketing offices and agencies. Verifone will provide a single-source solution, including help desk, field services, hosting, and hardware and software services. • Payment as a Service from Verifone provides Turkish Airlines maximum flexibility while alleviating the burden of integration, management and cost volatility. Turkish Airlines originally leveraged the platform in its own ticketing offices before expanding the deployment to its agencies this past summer. The initial deployment of 1,000 offices is expected to grow to a total of more than 6,000. Ingenico MPOS solution by Roam • ROAM, part of Ingenico Mobile Solutions and the leading mobile commerce platform provider, launched today the latest version of its mobile point of sale (mPOS) application, ROAMpay X5. This new version features a completely redesigned User Interface (UI) and is the first and only native tablet application for both iOS and Android that supports all mobile payment transaction types and all
  • 15. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 15 acceptance methods: magstripe, NFC, EMV chip & PIN, and EMV chip & sign. This application will be compatible with any Ingenico mPOS devices, including the iCMP. Telium Tetra • Ingenico Group, (Euronext:FR0000125346 - ING), global leader in seamless payment, unveiled its new comprehensive global offer, Telium Tetra, creating a fully integrated commerce ecosystem around the Point of Sale. Apple ApplePay • Apple CEO Tim Cook said Apple's new mobile payment system had over 1 million activations in the first three days after it became available, and is now more widely used than any competing payment system. Powa Cooperation with Worldline • Worldline [Euronext:WLN], a European leader in the payments and transactional services industry, announces its reseller partnership with Powa Technologies, an international commerce specialist. With this agreement, Worldline becomes a preferred reseller of PowaPOS solutions in Europe, Middle East and Africa, offering the powerful and pioneering PowaPOS T25 and PowaPIN mPOS solutions to extend its cross-channel payment terminals range for merchants and banks. Casio Partnership with MicroSale • Casio America, Inc., a leading point-of-sale (POS) system supplier, announced its partnership with MicroSale to help quick service restaurants streamline costs and increase efficiency. Casio enlisted MicroSale, a restaurant software company, to create a feature-rich software application called TabPOS for its portfolio of Android™-based POS systems including the V-R100, V-R7000 and V-R7100. Poynt New Payment solution • Poynt, the startup run by former Google and PayPal executive Osama Bedier, said it signed two of the largest payment processors to distribute its new payments terminal to small retailers, restaurants and other businesses. Mastercard Acquisition of TNS • Following a good third-quarter 2014, MasterCard Inc. (MA) announced a pact with Transaction Network Services (:TNS) to acquire the latter’s Payment Gateway Services business for an undisclosed value and terms. The deal is expected to culminate by the end of this year. • TNS Payment Gateway Services offers premier services related to data communications, payment processing and interoperability solutions through its core businesses, namely, eCommerce gateway and card-present gateway. Its data network functions on multi-channel platforms and supports an array of extensively recognized communications protocols, thereby benefiting from the large scale and accessibility of its services.
  • 16. ! BUSINESS & TECHNOLOGY INNOVATION REPORT First Data Clover Mobile Solution • First Data, the global leader in payment ! 16 technology and services solutions, unveils Clover™ Mobile, a powerful new mobile point-of-sale (POS) business solution that brings new flexibility and versatility to the Clover family. Clover Mobile enables more personal consumer engagement for innovative small- to mid-sized businesses by taking the functionality of the popular Clover Station off the counter and on to the floor. • Armed with Clover Mobile, merchants can place orders, take secure payments, scan inventory, clock in employees, sync sales data with their accounting packages and generate marketing insights that can lead to stronger, enduring customer relationships, all with a portable, tablet-sized device. This means restaurants can accept payment at the table; retailers can use it for line-busting at busy times; brick and mortar stores can use it as a full-featured payment and business solution; and on-the-go merchants can use the device for their mobile needs. OTI Payment cooperation with Canatolpue • On Track Innovations Ltd. (oti) (NASDAQ: OTIV), a global provider of near field communication (NFC) and cashless payment solutions, and Cantaloupe Systems, Inc., the vending industry's premier provider of cloud-based, mobile technologies, have confirmed oti's NFC contactless Saturn 6500 readers integrated in Cantaloupe's Seed Cashless™ solutions will accept payment made by consumers using Apple Pay. Energy Industry Energy Market Smart Bulb Shipments • Connected LED or "smart" light bulbs may still be a developing market concept, with shipments totaling fewer than 2.5 million units in 2013, but a new ABI Research report reveals that a number of factors will help drive an increase in shipments. • The research firm said that the advent of declining LED prices and the emerging ZigBee Light Link standard being embraced by the largest lighting manufacturers such as Philips, GE and OSRAM mean that annual smart bulb shipments are set to increase to 223 million by 2020, achieving a total installed base of over 400 million.
  • 17. ! BUSINESS & TECHNOLOGY INNOVATION REPORT ! 17 References Flipboard • if you want to reach the details of the news in the report, you can follow the recent report on web via https://flipboard.com/profile/ferhatunlu kal and/or download flipboard application from Apple store, Google Play, Windows Store and Blackberry World and reach all reports and details on your smart mobile devices.