2014

BUSINESS & TECHNOLOGY

INNOVATION REPORT

Week
43/44/45

Prepared by
Ferhat nlkal
11/09/2014

! BUSINESS & TECHNOLOGY INNOVATION REPORT

BUSINESS &
TECHNOLOGY
INNOVATION
REPORT

Week 43/44/45

Headlines
Consumer Electronics (CE)

Samsung announced that it acquired

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.

!2

Flat Panel Industry

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 worlds 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

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

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 20132018.

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 homeautomation 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-ofsale (POS) system supplier, announced
its partnership with MicroSale.

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! BUSINESS & TECHNOLOGY INNOVATION REPORT

Poynt said it signed two of the largest

payment processors.
MasterCard Inc. (MA) announced a pact
with Transaction Network Services
(:TNS) to acquire the latters 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

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 Sanyos North American TV Business

The annual smart bulb shipments are

set to increase to 223 million by 2020,
achieving a total installed base of over
400 million.

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

!4

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

in September, and also held a 27%

proportion during the October 1 period.

South Korean Players

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 lowpriced 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 flatpanel 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 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.

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! BUSINESS & TECHNOLOGY INNOVATION REPORT

Taiwan Makers LCD TV shipments

Taiwan makers' shipments of LCD TVs

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 eightcore 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

!6

The amount of traffic flowing through

the worlds 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

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 worlds 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.

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

Investment potential in Philippines

Foxconn Technology Group, the worlds

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 countrys 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

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
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! BUSINESS & TECHNOLOGY INNOVATION REPORT

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.

Home Automation Market

Tablet Shipments Market

!8

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.

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

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.

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! BUSINESS & TECHNOLOGY INNOVATION REPORT

AUO witnessed shortages to certain

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.

makers will be responsible for 33% and

17% of the global shipments of smallto 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

SEL
Folding Display

Semiconductor Energy Laboratory

(SEL), demonstrated a display that can
be folded in three.

Ultra HD TV Panel Shipments

Flat Panel Market

Small to Medium size LCD Production in
China

! 10

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

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 19and 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 49inch Ultra HD TV panels in order to
compete against 50-inch units.

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

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.

Semiconductor Industry
TI
WLink

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.

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 preintegrated 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.

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! BUSINESS & TECHNOLOGY INNOVATION REPORT

NXP

Automotive Based NFC

Chipmaker NXP is opening up the large

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 NFCenabled ecosystem.

SiTime
Acquisition of Megachips Corp.

DSL an G.Fast Chips Market

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

! 12

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.

Global Semiconductor Market

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.

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.

! BUSINESS & TECHNOLOGY INNOVATION REPORT

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.

Software Industry
Google
Modular Smartphone Project Project Ara

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.

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 Googles upcoming buildyour-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.

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

Avquisition of Revolv

Google Inc. (GOOG) added homeautomation device maker Revolv Inc. to

its portfolio of companies as the search
provider pushes deeper into the
business of making houses more
intelligent.

The Global 3D IC market to grow at a

CAGR of 18.4% over the period 20132018.
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.

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! BUSINESS & TECHNOLOGY INNOVATION REPORT

Service Industry

Retail and Payment Industry

Service Market

Verifone

Pay TV Market

New Secure Commerce Architecture

The worldwide Pay TV market is

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.

Verifone recently announced the global

availability of its secure commerce
architecture, designed to significantly
reduce merchant exposure to largescale 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

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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

acceptance methods: magstripe, NFC,

EMV chip & PIN, and EMV chip & sign.
This application will be compatible with
any Ingenico mPOS devices, including
the iCMP.

Casio
Partnership with MicroSale

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.
Poynt

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.

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

Powa
Cooperation with Worldline

Casio America, Inc., a leading point-ofsale (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 featurerich software application called TabPOS
for its portfolio of Android-based POS
systems including the V-R100, VR7000 and V-R7100.

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.

Acquisition of TNS

Following a good third-quarter

2014, MasterCard Inc. (MA) announced
a pact with Transaction Network
Services (:TNS) to acquire the latters
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.

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! BUSINESS & TECHNOLOGY INNOVATION REPORT

First Data
Clover Mobile Solution

First Data, the global leader in payment

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, tabletsized 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

! 16

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

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