Sign up for our Technology Newsletter 
Is Wafer Output Headed Down?
United Microelectronics (UMC) expects to post an up to 5 per cent decrease in wafer shipments for the third quarter of 2015.
The outfit’s capacity rate will fall below 90 per cent for the first time after being flat out for ages.
UMC CEO Po-Wen Yen said the third quarter, would suffer from the inventory correction problems that were first noticed in the first quarter.
Current weakness in overall demand, partly due to the uncertainties in economic outlook, will prolong the inventory adjustment through the second half of 2015,” he said.
UMC used 94 per cent of its overall capacity in the second quarter of 2015, when the company shipped a record 1.54 million 8-inch equivalent wafers.
Shipments during the quarter were driven mainly by 28nm products, the foundry noted.
UMC reported consolidated revenues of $1.23 billion for the second quarter, down 6 per cent on last year. Gross margin came to 22.9 per cent compared with 24.3 per cent in the first quarter and 22.9 per cent in second.
UMC created net profits of $1.45 billion in the second quarter of 2015 – the highest level in nine quarters.
Looking into the third quarter, UMC expects to use 87-89 per cent of its overall capacity in the third quarter. Wafer shipments and ASPs will fall up to 5 per cent and about 3 per cent, respectively, on quarter.
Will Qualcomm Give Some Workers The Boot?
Comments Off on Will Qualcomm Give Some Workers The Boot?
Qualcomm is undergoing major restructuring and one side-effect of the overhaul is that some 4,000 jobs might be slashed.
The company, according to our well informed industry sources, will announce this during the upcoming Qualcomm Q3 FY15 earnings conference call that Is scheduled for July 22. We could not find out which jobs will be affected, but we expect that the company will shad more light on it during the call.
In December 2014 the company announced that it would slash some 900 jobs and it ended up slashing roughly 1,500 jobs. This will be the first major announcement and it comes at a bad time, as the company’s sales numbers are not that great. Qualcomm lost its highest end customer, Samsung, and companies like HTC who are using the Snapdragon 810 are not too happy about company’s highest end SoC offering.
Qualcomm has around 31,300 employees, which is still not that much considering that Intel has some 100,000, but its main SoC competitor, MediaTek, has just over 10,000 employees making its operational costs much smaller.
If the number of employees 31,300 didn’t change in recent months, slashing 4,000 jobs would mean cutting the 12.8 percent of the workforce. This is a major adjustment, no question about it.
Still, we believe that the server division will start making some money in 2016 and the new Snapdragon 820 is expected to start shipping later this year. In the long run, the company is more than fine, it is just that the competitors have changed from Nvidia and Intel to MediaTek.
Qualcomm Has No Plans To Split
US chipmaker Qualcomm has told the world that it will not be dumping its “essentially useless chip making” business.
Hedge fund Jana Partners said in April that Qualcomm would make a pile more dosh if it just stuck to being a patent troll and stopped trying to flog “essentially worthless” chips.
Apparently Qualcomm thought about it. Executive Chairman Paul Jacobs the idea has been talked about for a long time, but came to the conclusion that the status quo contained a lot more “synergies.” Apparently synergies are a good thing to have about the place, particularly if you have a breeding pair.
Jacobs was less optimistic about Jana Partners’ idea which was apparently full of dis-synergies which might eat the synergies – or just diss them in public.
Executive Chairman Paul Jacobs said all this intensifying industry competition was not enough to spin off his chip business from its patent-licensing business.
Jacobs said, however, that the company is always evaluating its options and that the situation could change in the future, so maybe there a future for a Qualcomm troll walloping other companies with dis-synergies.
Qualcomm Strengthens IoT Lineup
Qualcomm is wedging its foot more firmly in the Internet of Things (IoT) door by announcing a range of moves to secure its position in the market.
The first announcement sees the firm expanding its Internet of Everything (IoE) platform with the addition of six new ecosystem providers: Ayla Networks, Exosite, Kii, Proximetry, Temboo and Xively by LogMeIn.
“This will further simplify the development of devices that use WiFi to connect to the IoE by increasing cloud service flexibility and making these solutions available in a broader global reach,” Qualcomm said.
Qualcomm has also introduced two connectivity solutions, the QCA401x and QCA4531, which bring WiFi capabilities to connect products across development platforms and “give customers an expedited and cost-effective path to deployment”.
The QCA401x is designed to ease manufacturer demand for increased computing and memory while lowering size, cost and power consumption, Qualcomm said.
It features a fully integrated micro controller unit with up to 800KB of on-chip memory and an expanded set of interfaces to directly interconnect with sensors, display and actuators, further reducing system cost, size and complexity.
The QCA401x also includes a suite of communication protocols including Wi-Fi, IPv6, and HTTP, as well as an advanced security feature designed to maximise security in IoT devices.
The QCA4531 is a low-cost turnkey solution that brings high-performance connectivity with a user-programmable Linux/OpenWRT environment.
It is designed to serve as an IoT node taking advantage of the Linux framework and as a hub to enable an IoT Ecosystem.
“As the [IoT] ecosystem expands, the QCA4531 is ideal for multi-protocol bridging and communication, bringing together multiple wireless medium and bridging between different ecosystems,” said Qualcomm.
The QCA4531 can function as an Access Point supporting up to 16 simultaneous devices, and is also power-optimised to enable appliances to meet international standards for energy efficiency.
The firm also banged on about the development of its subsidiaries Qualcomm Technologies, Qualcomm Atheros, Qualcomm Life, and Qualcomm Connected Experiences, and their progress across its range of IoT technologies.
Broadly, this includes an increased focus on providing better connectivity in the smart home with the AllSeen Alliance, as well as the development of more wearables in more countries, deploying more connected cars, more active engagements in smart city developments and partnering with more customers for connected healthcare.
“Driven by the significant growth and diversity of interconnected devices, Qualcomm companies are delivering the solutions and collaborating with technology leaders to empower manufacturers to create the best connected experiences in homes, businesses, cars and cities,” the firm said.
Qualcomm also announced additional features in its AllPlay smart media platform, including Bluetooth to WiFi re-streaming, custom audio settings and optimised synchronisation. The new AllPlay feature combines Bluetooth and WiFi for “whole home streaming”.
This means that all local or cloud-based music on a consumer’s smartphone can be streamed to any Bluetooth-compatible AllPlay speaker and then re-streamed over WiFi to multiple AllPlay speakers, all in sync.
This allows simple wireless connectivity to individual speakers or an entire home audio system over the user’s existing home WiFi network, providing an advantage over Bluetooth-only speakers which are limited to one-to-one streaming.
“The range and capacity of WiFi, coupled with the ubiquity of Bluetooth, is a game-changing combination for manufacturers and consumers alike,” said Sy Choudhury, senior director of product management at Qualcomm.
“AllPlay device manufacturers like Hitachi and Monster can now offer their customers more connectivity options and access to myriad streaming services throughout their home with this new capability.”
Qualcomm announced last month that it has teamed up with Dutch semiconductor maker NXP to bolster its near field communication offering, expanding the technology outside the smartphone and into IoT devices.
NXP’s embedded secure element will be integrated across Qualcomm’s Snapdragon 800, 600, 400 and 200 processor-based platforms.
The new offering features a module variant derived from the recently launched NXP PN66T NQ220 module, now named the NQ220.
Is The DRAM Market Gaining Traction?
DRAM market conditions will be better in the third quarter of 2015, recovering from the bad first half of the year, according to Inotera.
Inotera chairman Charles Kau said that it was unclear if DRAM prices will stop falling and rebound in the third quarter.
Inotera on May 11 signed a $508 million five-year syndicated loan agreement with a consortium of local banks in Taiwan in the hope of getting a bit of flexibility until things pick up.
The outfit was not thinking of flogging any of the family silver, but plans to start distributing dividends to shareholders in 2016, Kau noted.
In 2014, non-PC DRAM products accounted for 60 per cent of Inotera’s total revenues. The company will continue to improve its product mix in 2015, while making progress in the transition to 20nm process technology.
Kau told Digitimes that Inotera http://www.digitimes.com/news/a20150512PD219.html plans to have 80 per cent of its total production capacity to be built using a newer 20nm node by the end of 2015.
Meanwhile it is not planning any big capital expenditure, he said.
Intel Shows New IoT Platform
Intel showed off a new platform which it claims makes it easier for companies to create Internet-connected smart products using its chips, security and software.
Intel’s platform is like Lego and based on the chipmaker’s components and software for companies to create smart, connected devices. The only difference is that you can’t enact your own Doctor Who scene from it.
Doug Davis, head of Intel’s Internet of Things business, said at a launch event in San Francisco it will make it a doddle to connect to data centres in order analyse data collected from devices’ sensors.
Intel’s chips should compute capability in end-point devices that scale from its highest performance Xeon processor to the Quark family of products.
Intel’s Internet of Things Group had $530 million in revenue in the September quarter. That accounted for just 4 percent of Intel’s total revenue in the quarter, but it grew 14 percent over the previous year, which was faster than the company’s PC business.
Dell, SAP, Tata Consultancy, Accenture and other companies are working with the new reference model, Davis said.
Will Verizon Throttle Users?
October 15, 2014 by admin
Filed under Smartphones
Comments Off on Will Verizon Throttle Users?
Verizon Wireless backed away from a widely criticized plan to slow down the connections of heavy data users with unlimited LTE plans.
The carrier had announced in July it would extend a practice it calls network optimization to unlimited LTE subscribers starting in October. Network optimization targets the top 5 percent of data users on the network when a cell site is under the heaviest demand, and slows down those users’ network performance. Verizon had already applied the practice to the top users of its 3G network.
“We’ve greatly valued the ongoing dialogue over the past several months concerning network optimization and we’ve decided not to move forward with the planned implementation of network optimization for 4G LTE customers on unlimited plans,” the carrier said in a statement on Wednesday. “Exceptional network service will always be our priority and we remain committed to working closely with industry stakeholders to manage broadband issues so that American consumers get the world-class mobile service they expect and value.”
U.S. Federal Communications Commission Chairman Tom Wheeler attacked the plan in a letter to Verizon, suggesting it was a ploy to get customers to switch from their unlimited plans to ones with a cap on monthly data usage. Verizon no longer sells new unlimited plans but allows subscribers with those plans to keep them.
“I know of no past Commission statement that would treat as ‘reasonable network management’ a decision to slow traffic to a user who has paid, after all, for ‘unlimited’ service,” Wheeler wrote in the late July letter to Verizon Wireless President and CEO Dan Mead.
Digital rights group Public Knowledge also attacked so-called data throttling, as well as practices by AT&T, Sprint and T-Mobile USA.
The showdown demonstrated the tension over increasing demand for mobile data, which carriers say puts a strain on their networks. Among other things, that demand has led operators to seek ever more spectrum and apply network management techniques they say are necessary to keep serving all subscribers well. Though LTE makes much more efficient use of the airwaves than 3G does, LTE networks are serving a rapidly growing number of subscribers.
Will Sprint Cut It’s Staff?
August 26, 2014 by admin
Filed under Around The Net
Comments Off on Will Sprint Cut It’s Staff?
Sprint’s new CEO Marcelo Claure addressed employees for the first time and promised price reductions are coming very soon, according to a report.
Sprint didn’t deny the report of Marcelo’s comments. A spokesman also confirmed Friday that Sprint is “focusing on providing the best value in the market.”
According to the account of Claure’s comments, he told workers, “We’re going to change our plans to make sure every customer in America thinks twice about signing up to a competitor.” The report, which first appeared in LightReading.com, also said that “very disruptive” rate plans are coming this week.
Sprint didn’t dispute Light Reading’s report, but a spokesman said Sprint is not commenting on “any potential pricing plans before they are announced.”
The spokesman, Doug Duvall, said Marcelo held his first all-employee town hall meeting before a standing-room-only crowd. He added: “He shared his passion for his family, work and soccer team and his commitment to leading Sprint. He discussed Sprint’s challenges and pledged to get Sprint ‘back in the game’ by focusing on providing the best value in the market, completing our network build and optimizing Sprint’s cost structure.”
By confirming Sprint wants to offer the “best value in the market,” it’s pretty clear that Sprint, the third-largest U.S. carrier, will soon wage a price war with the T-Mobile, the fourth-largest U.S. carrier that has quickly been gaining on Sprint.
Analysts recently said Sprint’s recent “Framily plan” isn’t competitive in the market, which former CEO Dan Hesse acknowledged in late July before his departure on Monday.
The Sprint Framily plans costs $160 a month for 4GB of data, but comes with overage charges and won’t allow tethering. Meanwhile, T-Mobile has a family plan offered through September that costs $100 a month for four lines and 10GB of data, although each line is limited to 2.5GB.
Hesse had earlier described subscriber plans Sprint was testing that have tiers of data and unlimited data.
According to Light Reading, Claure also told employees that price cuts are needed because Sprint’s network isn’t at the level of performance and reach that it should be. “When you have a great network, you don’t have to compete on price,” he reportedly said. “When your network is behind, unfortunately you have to compete on value and price.”
Verizon Wins Top Honors
July 23, 2014 by admin
Filed under Consumer Electronics
Comments Off on Verizon Wins Top Honors
RootMetrics awarded Verizon Wireless its seal of approval in its latest biannual ranking of wireless network performance in cities across the U.S.
Verizon ranked first or was tied for first in 115 of 125 cities for overall network performance during the first half of 2014, leading all three other national carriers — AT&T, Sprint and T-Mobile.
Sprint didn’t finish first in any of the cities, while Verizon tied with either AT&T or T-Mobile, or both, in 56. That meant that AT&T was the only first place finisher in 59 cities, including major cities such as Cincinnati, Colorado Springs, Colo., Daytona Beach, Fla., Detroit, Los Angeles, Miami, Minneapolis, Nashville, Salt Lake City, San Antonio and Seattle.
RootMetrics found that Verizon finished first in 23 of 50 airport network evaluations for the first half of the year and tied for first in seven out of 50 airports. Verizon won or tied at four major airports: Atlanta, Chicago, Los Angeles and Denver.
Verizon has its 4G LTE network in 500 U.S. cities, providing access to 97% of the U.S. population. RootMetrics used devices capable of connecting to Verizon’s XLTE network, now operating in 300 cities.
XLTE uses AWS spectrum.
RootMetrics is an independent research company that uses testers driving in cars and in stationary locations, both indoors and outdoors, to conduct thousands of tests in each city to evaluate reliability and speed of connections and call, data and text performance. The company uses unmodified smartphones purchased off-the-shelf from operator stores.
Will Sprint Acquisition Efforts Succeed
May 19, 2014 by admin
Filed under Smartphones
Comments Off on Will Sprint Acquisition Efforts Succeed
Sprint Corp is meeting with banks to devise a funding plan for its bid for smaller rival T-Mobile US Inc, a source familiar with the situation said, as the mobile carrier works to ease regulatory concerns that the deal would hurt competition.
The source said that Sprint, which is owned by Japan’s SoftBank Corp, is looking to fund the bulk of T-Mobile’s estimated $50 billion price tag with corporate bonds and cover the rest with syndicated loans and convertible bonds.
Sprint is currently having discussions with at least five banks, the source told Reuters, including JP Morgan, Goldman Sachs and Deutsche Bank.
Bloomberg, which first reported that Sprint was in talks with banks on Thursday morning in Asia, said the carrier was also talking to Mizuho Financial Group Ltd and Citibank. Softbank is expected to make a formal offer in June or July, Bloomberg added.
Sprint spokeswoman Roni Singleton told Reuters the company does not comment on rumors and speculation. T-Mobile and SoftBank both declined to comment on the Bloomberg report.
Sprint is facing a battle ahead with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, the source said.
Two of the most vocal opponents to the deal are Federal Communications Commission Chairman Tom Wheeler and U.S. antitrust chief William Baer, who have pointed to T-Mobile’s success since U.S. authorities rejected a 2011 merger between AT&T Inc and T-Mobile on the grounds the market needs at least four major players to be competitive.
The failure of that deal cost AT&T a $6 billion break-up fee, a penalty Sprint feels confident it can avoid, the source said, adding that it is leaning towards having Deutsche Telekom, which currently owns 67 percent of T-Mobile, retain part of that stake.