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Labor shortages in China as young people are much less willing to work under harsh working conditions–all this “compensated” for the time being with compulsory student labor required to get the graduation certificates
After a similar situation three years ago Help wanted: China’s labor shortage [CNNMoney, March 8, 2010], just in eastern China:
now ODMs, component makers face labor shortages in western China [DIGITIMES, April 12, 2013]
Mainly because Taiwan-based notebook ODMs have been accelerating the process of shifting production to plants in Chongqing and Chengdu, in western China, the factories of ODMs and component makers in the region are seeing increasing difficulty recruiting enough workers, according to Taiwan-based supply chain makers.
Since the ODMs and related upstream suppliers are already facing labor shortages during the slow season (the first half) of 2013, the sources are concerned that the shortages will become more serious in the second half.
Acer’s 7-inch entry-level tablet is also suffering from unstable supply due to a labor shortage at component suppliers.
Quanta Computer plans to move all its notebook production except those for Apple, to its plants in Chongqing in 2013. Compal Electronics will shift 90% of its notebook capacity to Chongqing plants and will expand capacity in the second quarter.
Since people in western China are less willing to work in factories, the governments are mainly pushing student workers to aid the IT firms. Currently, about 50% of IT firms’ workers in Chongqing are students, and in Chengdu the proportion is 60-70%, the sources noted.
Since students in western China are required to conduct internship activities at factories in order to graduate, the governments can easily mobilize a large number of student workers to help IT firms. However, student workers’ high rates of absenteeism is causing the makers difficulties managing their production line manpower.
In addition, recruitment competition will also become a serious issue as the makers will need to offer attractive packages to draw people’s attention, but it will impact their profits, the sources said.
- Hewlett Packard’s better practices which could be a model for others in the electronics industry [1:00 – 3:50], see also the related written report:
The factory [with 14,000 workers], in Chongqing, makes computers for Hewlett-Packard, a company with little of Apple’s glamour. It is operated by Quanta, a little-known Taiwanese manufacturer.
…
Neither Quanta nor Hewlett-Packard claims it has solved every labor woe. And the amenities are partly selfish: one of the biggest problems for Chinese factories is that workers are constantly leaving. Hewlett-Packard hopes that by improving living conditions, turnover and training costs will fall.
- What changes Foxconn has made, and what challenges lie ahead as Foxconn and Apple say they are trying to improve working conditions? [4:23] See also the other parts of the related written report, Signs of Changes Taking Hold in Electronics Factories in China [The New York Times, Dec 26, 2012]:
With 1.4 million employees in China — the most of any private company — Foxconn is setting a bar that all manufacturers will be judged against, say executives at other companies.
“When the largest company raises wages and cuts hours, it forces every other factory to do the same thing whether they want to or not,” said Tony Prophet, a senior vice president at Hewlett-Packard. “A firestorm has started, and these companies are in the glare now. They have to improve to compete. It’s a huge change from just 18 months ago.”
…
Foxconn, more than any other company, has proved that Chinese plants can deliver obsessive attention to quality. The company has helped make China into a manufacturing juggernaut through strict discipline that is visible everywhere, even in the salutes managers give visiting executives. That discipline, say former Apple executives, is one reason every iPhone is put together so well. …
… Though Foxconn has trained managers to treat employees more gently, foremen still use profanity and intimidation, workers say. The managers speak in a manner that often feels like a threat,” said Mou Kezhang, who works in iPad quality assurance at the Foxconn factory in Chengdu [with 164,000 workers producing iPads for Apple out of 1.4 million employees in China].
Here is what was A typical work day for a Foxconn worker in Chengdu (animation only) [NMANewsDirect YouTube channel, May 10, 2011]
Background report: Foxconn and Apple Fail to Fulfill Promises: Predicaments of Workers after the Suicides [Students & Scholars Against Corporate Misbehavior, May 7, 2011]
FLA REPORT SHOWS SOME POLICY CHANGES AT FOXCONN BUT FEW IMPROVEMENTS FOR WORKERS [Students & Scholars Against Corporate Misbehavior, Aug 24, 2012]
On 21 August, the Fair Labor Association (FLA) released a verification report on labour practices at three Foxconn factories producing for Apple in China that were the subject of an earlier FLA investigation. In its report, the FLA trumpets the speedy progress at Foxconn in remediating widespread labour rights violations. However the FLA has overstated the improvements at Foxconn. Firstly, most of the actions completed by Foxconn are changes at the policy level only, but few substantial changes in labour practices were found at this stage. Secondly, Foxconn has deliberately delayed implementing many of the actions called for in the remediation plan, even those that are almost cost-free. Thirdly, workers have had no opportunity to participate in the remedial action process. SACOM has repetitively demanded democratic trade unions at Foxconn as an indispensable step in reforming its labour practices.
…
Terry Gou always speaks proudly of “Foxconn-speed”. The world’s biggest IT manufacturer can build a factory in 76 days in Chengdu. When talking about legal compliance, however, Foxconn buys time by undertaking “gradual reform.” To be fair, SACOM agrees that some reforms take time to accomplish. However, it makes little sense that Foxconn is reluctant to immediately rectify some problems that do not require expenditure of much of the company’s considerable resources. For instance, Foxconn still refuses to deliver a copy of the collective bargaining agreement to workers, and workers are kept in the dark about the company’s remedial action plan.
SACOM reiterates that factory inspection alone cannot eliminate labour rights violations. A democratic trade union trusted by workers is the most sustainable solution towards decent working conditions.
Those Were the Years, When I Was at Foxconn 那些年, 我在富士康 [sacom2005 YouTube channel, Feb 24, 2013]
Current situation: [OPEN LETTER TO APPLE’S SHAREHOLDERS] INFLUENCE APPLE WITH YOUR SHARES [Students & Scholars Against Corporate Misbehavior, Feb 26, 2013]
Dear Apple’s shareholders,
On the eve of Apple’s annual shareholders meeting in the U.S., Students & Scholars Against Corporate Misbehaviour (SACOM) and other labour organizations in Hong Kongcome to the Apple Store located in Causeway Bay, to protest against the Apple Inc. (Apple) conniving at suppliers’ harsh labour practices. Meanwhile, SACOM also take the opportunity appeal to shareholders to look squarely at Apple’s shameless infringement on labour rights. Apple shareholders should use their influential power to take part in governing Apple and to force the management to adhere to the labour rights standards.
Since 2005, Apple has released the Apple Supplier Code of Conduct stating that suppliers should comply with the international labour standards, and requesting that “Apple’s supply chain provides safe working conditions, respect workers, that they are treated with dignity”. SACOM, however, find Apple fails in its responsibilities which laid down in its Supplier Code of Conduct. To make sure that workers can meet the daily production targets, the management adopt a number of inhumane management methods. For instance, depriving workers’ legitimate rights to take toilet breaks, ergonomic breaks and meal breaks.
Apple joined the Fair Labor Association (FLA) in January 2012, but the labour rights abuses are still widespread in Apple’s supply chain.. At the end of 2012, SACOM conducted investigation in three Apple’s suppliers, Foxlink, Pegatron and Wintek. Similar to Foxconn, military-style management is adopted in the factories. Rampant labour rights violations including unpaid overtime work, long working hours, forced internship, excessive use of dispatch labour, poor occupational safety. The following is the voice from a Sichuan student who worked at the polishing department of Riteng for producing iPads.
“The production target is 5000 pieces per day. I am really exhausted…. I want to go back to the school, but my teacher said we would not receive our graduation certificates if we left.”
Apple always deploys its staff to monitor the on-site production process at its suppliers. Obviously, it knows very well on the non-compliance, but it keeps turning a blind eye to the problems. Apple’s net profit recorded at US$ 41.7 billion (about HK$ 325billion) last year. Yet, it still requires its suppliers to complete the production by urgent orders with a very low unit price and a short delivery time. Harsh management methods are inevitably adopted. Although Apple has been well-informed of these violations, it has intentionally neglected its corporate social responsibility. All these labour rights violations are incredibly shameful.
Shareholders, as the company’s investors, should bear the moral responsibility for the operation and purchasing practices of Apple, and monitor Apple to improve the labour practices at its suppliers. SACOM call on Apple’s shareholders to scrutinize the company to strictly enforce its commitment on its Code of Conduct and corporate social responsibility, that is:
- to allow workers to form trade unions by democratic elections in accordance with the Chinese Trade Union Law;
- to stop using student workers immediately;
- to provide a living wage of all workers which enables workers to support themselves and their families;
- to review management methods and to ensure workers are treated with respect and dignity;
- to conduct labour rights training for workers, particularly training on occupational health and safety; and
- to compensate victims for the non-compliance of the Apple’s Code of Conduct.
Yours faithfully,
Students & Scholars Against Corporate Misbehaviour
Chongqing – the unofficial biggest city in the world [stefhoffer YouTube channel, March 3, 2012]
Downtown Chongqing (Part 1) 重庆市区 [Austin Guidry YouTube channel, March 29, 2013]
Three views of Chengdu, China [globaltravel196 YouTube channel, Oct 15, 2012]
Commentary: Labor shortages, rising wages in China push notebook component firms toward automation [DIGITIMES, April 1, 2013]
China continues to increase minimum wages but labor shortages along the coast continue sending the notebook supply chain moving inward to central China. The lack of labor is notebook firms’ biggest problem currently and some brands have decided to work with component providers to build automated production lines. However, some other firms have noted that automation is difficult to achieve because currently there are no standards or rules to follow.
China’s wage levels continue to climb despite the slowdown of the global economy. According to statistics, since the beginning of 2013, seven major provinces and cities such as Beijing, Zhejiang, Henan, Shaanxi, Guizhou, Guangdong, and Shenzhen have all increased their minimum wages. Take Shenzhen for example, the minimum wage was increased from CNY1,500/month (US$241/month) to CNY1,600/month [US$257/month], the highest in China. As for minimum hourly wages, the highest is Beijing at CNY15.2/hour [US$2.4/hour].
Actually many firms have been paying their workers more than the minimum wages in order to secure their workforce, and in the past this usually happend in the coastal areas, such as Kunshan, Shanghai and Guangdong, where big firms and major manufacturing facilities were mostly located. Now this is also happening in inland areas, as firms move away from the coast looking for cheaper labor.
In the notebook supply chain, most firms such as Foxconn Electronics (Hon Hai Precision Industry), Quanta Computer, Compal Electronics, Wistron, and Inventec are all gathered in Chongqing or Chengdu in central China, and this will raise the labor costs in those regions.
Some observers have noted that labor shortages in China are worsening because young workers are reluctant to enter the manufacturing sector. This will cause problems such as delayed shipments and increasing labor expenses.
Some component makers believe by upgrading to automated production process, the problems can be solved. Simplo, a Taiwan-based notebook battery provider which has a global market share of 20%, faces labor shortages during the boom season. The firm has been aggressive in increasing the percentage of automated production in recent years, which has helped the firm increase efficiency by 40%.
Notebook firms revealed that many in the supply chain were at first reluctant to move plants to Chongqing due to moving costs. They received subsidies from the local governments, but they know that it is not a long-term policy. Labor shortages and increasing labor costs will likely continue and firms may be forced to move again. Hence, automated production may be one of the solutions to this problem.
Foxconn reportedly to move production lines out of China [DIGITIMES, Feb 27, 2013]
Seeing that Foxconn Electronics (Hon Hai Precision Industry) has no plans to recruit standard workers in China, rumors have started circulating in the IT market that Foxconn is considering moving its investment focus from China to countries such as Brazil, Indonesia, Taiwan and the US.
Foxconn has declined to comment on the rumors, but some market watchers noted that China will still be an important investment target for the company in 2013, judging by the current market status.
Foxconn’s recent investments worldwide should not be regarded as moves out of China since the investments simply show the maker’s global market planning, the sources pointed out.
Although China’s rising labor costs and strict policies for environmental protection will gradually impact Foxconn’s profitability, compared to the US, Brazil and Indonesia, China currently still has advantages in terms of cost and infrastructure, the sources said.
Acer to shift 90% notebook production to Chongqing, China [DIGITIMES, March 1, 2013]
Acer recently decided to increase the percentage of notebook production in Chongqing, China to 90%, beginning in the second quarter of 2013, according to industry sources. Due to increasing production in Chongqing, as well as Chengdu (both being in western China), local supply of labor and components is expected to be tight.
As growth of the notebook industry slows down, ODM firms have been more sensitive to production cost changes. While scattered manufacturing plants mean higher production costs, the ODMs have been working towards centralizing their production. Nevertheless, brand clients have been more eager to diversify risks by issuing orders to plants in different locations. But the ODMs have managed to have Acer agree to shifting most of its production to western China.
HP has shifted production for most of its notebooks to Chongqing while Dell and Lenovo’s production mainly takes place in Chengdu. As for Acer, its major ODM partners Quanta Computer and Wistron have moved 100% of their notebook production capacity to Chongqing while Compal Electronics, which maintained 50% of capacity in Kunshan and 50% in Chongqing in 2012, will increase the proportion of capacity in Chongqing to 90% in 2013, the sources said, adding Compal will start moving its equipment in the second quarter.
With the exception of Apple products, Quanta’s notebook production for other brands will be moved to Chongqing, the sources said. To meet clients’ demand, Compal continues to have notebook production in Kunshan, Chengdu, Chongqing and Hefei. However, Compal’s Hefei plant is a joint venture with Lenovo and due to its location, production costs have been rising, and hence company president Ray Chen has disclosed plans to centralize capacity by moving production to the western regions in China. Compal’s Chengdu plant is predicted to ship more than 500,000 units per month in the second quarter and the Chongqing plant is expected to achieve the same figure starting in March and April.
The sources revealed that while notebook production will be concentrated in Chongqing and Chengdu, the ODMs will keep their tablet and server production lines in Shanghai, Songjiang, and Kunshan. Take Inventec for example, the firm plans to shift production focus at its Shanghai plant from notebooks to servers and all-in-one (AIO) PCs.
The centralization of notebook capacity in Chongqing and Chengdu has prompted component providers to consider moving production to the western regions of China as well.
The sources said the labor cost in inland China is relatively low compared to coastal regions but the transportation cost remains high. So far the cost difference in transportation has been subsidized by the local government but no one knows when the subsidy might end, the sources added.
According to statistics provided by the city government of Chongqing, export processing trade value increased 150% in 2012, reaching US$15.364 billion. Notebook exports reached 35.44 million units, an on-year growth of 130% with an export value of US$12.541 billion. Notebook export value accounted for almost 30% of total 2012 export value of Chongqing.
China’s Chongqing Plans 1.5 Trillion Yuan Investment: Xinhua [Xinhua via Bloomberg, Aug 20, 2012]
China’s southwestern municipality of Chongqing plans to boost industrial investment to 1.5 trillion yuan ($235.9 billion) in the five years through 2015, the official Xinhua News Agency said today, citing the local government.
The investment will help Chongqing expand its total industrial output beyond 3 trillion yuan, the report said.
China’s industrial-output growth unexpectedly slowed in July to a three-year low while investment and retail sales missed estimates, raising pressure on Premier Wen Jiabao to step up efforts to support expansion. Chongqing’s industrial investment plan will focus on building seven “big manufacturing industries,” including electronic information, automotive, equipment and parts manufacturing, oil refining, material and energy industries, according to Xinhua.
The electronic information manufacturing industry, which includes notebook computers, will receive 300 billion yuan [US$47.2 billion] in investment, while the car-manufacturing industry will receive 200 billion yuan, Xinhua said.
The equipment manufacturing sector will get an investment boost of 250 billion yuan, and Chongqing’s oil and ethylene refining sector will receive 150 billion yuan, the report said.
Chongqing consolidating IT role: Party chief [Xinhua, March 22, 2012]
CHONGQING, March 22 (Xinhua) — Chinese Vice Premier Zhang Dejiang, newly appointed Party chief of Chongqing, has promised unremitting efforts to consolidate the municipality’s role as a global leader in information technology.
Zhang told visiting Acer President Jim Wong on Wednesday that Chongqing would ensure “continuity and stability in its reform and opening-up policies” so as to make the drive.
Zhang was appointed Party chief of Chongqing, replacing Bo Xilai, under a decision by the Communist Party of China Central Committee last Thursday.
“Chongqing will diversify and optimize its policies to improve its opening-up,” Zhang said, while emphasizing the importance of upgrading vocational and technical education to train high-quality professionals for foreign-funded IT firms in Chongqing.
Wong and hundreds of other senior executives from the world’s leading IT firms including Hewlett-Packard (HP) and Intel have gathered in Chongqing to attend the China International Expo of Cloud Computing, which opened here Thursday.
The three-day event features symposiums and exhibitions of new IT technology, products and services.
Wong said Zhang’s reassurance helped enhance investors’ confidence.
He said the company plans to build Acer’s manufacturing base in Chongqing into the world’s largest communication technology research and manufacturing center in two to three years.
Taiwan-based Acer is the world’s largest vendor of completed PCs and notebooks. Acer’s plants in Chongqing, which only commenced business in December 2010, realized an output of 5 million notebooks in 2011.
In the year, 35 percent of Acer’s global notebook shipments were supplied from Chongqing. Meanwhile, rival HP plans to have 60-70 percent of its notebook shipments supplied from Chongqing in future.
Chongqing mayor Huang Qifan also met the entrepreneurs on Wednesday, saying the city has become home to the world’s five leading notebook producers and six vendors, as well 500 suppliers of the sector.
The city had a total output of 25 million notebooks in 2011 and is aiming for an annual output of 100 million of the products in three years.
Chongqing laptop output among top 3 nationwide [CQNEWS, Dec 17, 2012]
The output volume of laptops, printers and LCD screens in Chongqing is expected to be among the domestic top 3, only second to Shanghai and Jiangsu, according to Chongqing Municipal Commission of Economy and Information Technology.
Five global laptop brands including HP and Acer have established factories or placed big processing orders in Chongqing; while the world’s top 5 original equipment manufacturers like Inventec and Foxconn have also invested here. In addition, some 705 more laptop supporting enterprises gathered in the city too. The “5+6+700” industrial chain of the laptop sector has taken shape in Chongqing.
Statistics show that Chongqing produced more than 35 million laptops from January to October, 2012, up 99% year on year. According to the current momentum, Chongqing will see the total output volume of laptops, printers and LCD screens respectively hit 45 million, 9 million and 9 million in 2012, which will all rank among the top three in China.
Trans-Eurasia railway connects China with Europe [Abdi Ali YouTube channel, March 19, 2013]
Rail linking Europe expected to open up China’s less-developed West [Xinhua, July 2, 2011]
CHONGQING, July 1 (Xinhua) — A cargo train filled with laptops and LCD screens has left Chongqing, a mega-city in China’s less-developed western regions, starting its 13-day trip to Duisburg, Germany, which marks the official launch of the new transcontinental rail freight route.
The new rail route witnessed its official opening on Thursday night, after three test runs since March last year.
Clattering out of the station at about 9 p.m., the cargo train is set to travel 11,179 kilometers across the far western Xinjiang Uygur Autonomous Region, Kazakhstan, Russia, Belarus, Poland, before finally reaching Germany.
The route offers a major shortcut to the more traditional sea trade routes from Shanghai and Guangzhou, cutting travel time to Europe from about 36 days by container ship to just 13 days by freight train, said Huang Qifan, mayor of the inland business hub.
Huang said that the train is also safer and less expensive than sea transport.
Though the rails have been there for over ten years, the route is new as no train services linking Chongqing and Europe have been provided before due to complicated customs checks and cargo transfers, according to Ma Zhongyuan, director of Chongqing customs.
Last year, China signed a strategic agreement with Russia and Kazakhstan to open the new freight route, as the country is trying to build the inland labor-rich municipality into an international high-tech hub, especially for laptops.
Foxconn, the world’s biggest contract electronics supplier, Acer, Taiwan’s leading computer maker, and Hewlett-Packard(HP) are already in place in Chongqing to produce laptops.
In the first five months this year, Chongqing sold 2.43 million laptop computers abroad. The exports were valued at 840 million U.S. dollars, accounting for 20 percent of the city’s total export value.
The city’s export of new- and high-tech products totaled 14.26 billion in the period, up 182.5 percent year-on-year.
Officials believe the shorter transport time to Europe by railway will make made-in Chongqing notebook computers more competitive.
Last month, a new cargo air route also became available between Chongqing and the European cities of Moscow and Luxembourg.
The province-sized city is already a major transport center at the junction of China’s prosperous East and poorer West, as cargo can be sent out of Chongqing along the Yangtze River, the country’s longest waterway,via air and railway.
The new rail route will be used to link south China’s Pearl River Delta manufacturing hub and the country’s southwest industrial belt with Europe, officials said.
Just last mouth, a rail route connecting Chongqing and a port in the southern manufacturing hub of Shenzhen went into operation.
The transcontinental track will also boost trade between southeast Asia and the Europe, as railways have already linked Chongqing with the southwestern border province of Yunnan and Guangxi Zhuang Autonomous Region, said Cai Jin, vice president of the China Logistics and Purchasing Association.
Currently, the train only leaves Chongqing for Duisburg once a month, but train services may be increased to once per day in the future as the city’s exports to Europe increase, according to Huang.
Related:
Freight rail across Eurasia cuts travel time for trading goods between China, Europe
CHONGQING, May 10 (Xinhua) — A new freight rail has started operating across Eurasia, linking the southwest Chinese economic hub of Chongqing with the Port of Antwerp in Belgium and cutting the travel time for goods traded between China and Europe in half, officials said Tuesday.
The 11,179 kilometers of rail, running through Kazakhstan, Russia, Belarus, Poland, and Germany, was first used on March 19. Transporting goods from Chongqing to Antwerp on this route takes about 16 days, or half the time required for the goods to be transported by sea, Chongqing Mayor Huang Qifan told reporters. Full story
HP to continue with investments in China [Xinhua, Sept 23, 2010]
NEW YORK, Sept. 22 (Xinhua) — Hewlett-Packard Co. will expand its presence in China, Larry Irving, the company’s vice president for global government affairs, said on Wednesday.
“Our goal in China is to be a good partner in China, to bring more products to the Chinese market and to be a good employer as well,” Irving told Xinhua at the Clinton Global Initiative annual meeting in New York.
HP’s presence in China began in 1981 with the opening of the first China HP representative office in Beijing. After years of solidifying business relationship, China Hewlett-Packard, the first high-tech joint venture in China, was established in 1985.
Nowadays, HP is the second-largest PC maker and a leading foreign PC vendor in China.
Earlier this year, to bolster its presence in China, HP joined hands with China’s Chongqing to announce a plan to operate a 20,000-square-meter facility in the city, where it will make state-of-the-art notebook and desktop PCs.
Irving said HP will continue to invest in China.
“We have private conversation with the Chinese government, about our particular circumstances,” he added. “HP’s presence has been grown in China. We are making more investment in China, not less investment in China. We see China as a great opportunity.”
Chinese Premier Wen Jiabao said last week that China is committed to building an open and fair business environment for foreign investors.
“All foreign enterprises registered in China enjoy national treatment,” Wen said in a speech at the opening ceremony of Summer Davos 2010 in Tianjin.
Chongqing, Chengdu among top investment destinations in China: U.S. businessmen [Xinhua, Feb 4, 2010]
NEW YORK, Feb. 3 (Xinhua) — The southwestern Chinese cities of Chongqing and Chengdu are among the best investment destinations in that country, several U.S. business executives agreed.
“Chongqing and Chengdu have such huge population centers, so they have greater opportunities than many other places,” David J. Hofmann, director for North America at Inter-China Consulting, told the China Investment Strategies Conference held here Wednesday.
Chongqing and Chengdu have enough labor forces to support the economic sector, especially some export-led industries, according to Hofmann, whohas 30-year business experience in China.
The two cities are also good places for innovators as they boast rich talent potentials, he added.
There are good universities and well-educated students in Chongqing and Chengdu who can play the operating and managing roles for investors’ companies, said the business executive.
Hofmann was echoed by Gene Huang, chief economist and vice president of FedEx, who said China’s strategy to develop its western regions is very supportive for doing business in Chongqing and Chengdu, which would remain attractive for U.S. investors “for quite some time.”
President and co-CEO of Tishman Speyer Rob Speyer also agreed that there are enormous government investments in the two cities.
State councilor stresses technological innovation for Chongqing’s development [Xinhua, April 9, 2010]
CHONGQING, April 9 (Xinhua) — State Councilor Liu Yandong has called for more efforts in scientific and technological innovation to boost development in China’s Chongqing Municipality.
Liu made the remarks during a recent inspection tour of Chongqing, the only municipality in China’s central and western regions.
She said innovation in science and technology is crucial to combat the financial crisis, optimize industrial structure, adjust the economic growth mode, and to achieve fast development.
Liu urged the municipality to make breakthroughs in its pillar industries, strive to foster technology-intensive burgeoning industries of strategic importance, speed up its building of a science and technology innovation center and an industrial base to apply scientific research to industrial production.
During her inspection, Liu visited schools, scientific research institutes, high-tech companies and cultural institutions.
Disposable income rises for Chongqing’s relocated urban residents in Three Gorges areas [Feb 21, 2010]
BEIJING, Feb. 21 (Xinhua) — Disposable income was at 8,231 yuan (1,205 U.S. dollars) per capita in 2009 for Chongqing’s urban residents relocated to make way for the Three Gorges project, said the National Bureau of Statistics (NBS) of China Sunday.
The figure was 11.5 percent up from the previous year, according to a statement on the NBS website.
The growth could mainly be attributed to the steady rise in salaries as the local government had taken measures to increase employment opportunities for relocated residents, according to the announcement.
TSMC’s 16nm FinFET process to be further optimised with Imagination’s PowerVR Series6 GPUs and Cadence design infrastructure
OR After CPU level optimisation With 28nm non-exclusive in 2013 TSMC tested first tape-out of an ARM Cortex™-A57 processor on 16nm FinFET process technology [‘Experiencing the Cloud’ April 3, 2013] the world #1 foundry decided to further optimise its crucial 16nm FinFET process with the most demanding from implementation point of view PowerVR Series6 GPUs for graphics and compute applications
Update: TSMC 16nm FinFET to enter mass production within one year after 20nm ramp-up, says Chang [DIGITIMES, April 18, 2013]
TSMC’s 16nm FinFET process will enter mass production in less than one year after ramping up production of 20nm chips, company chairman and CEO Morris Chang said at an investors meeting today (April 18).
Chang indicated that TSMC already moved its 20nm process to risk production in the first quarter of 2013. As for 16nm FinFET, the node will be ready for risk production by the year-end, Chang said.
While stepping up efforts to bring newer nodes online, TSMC has revised upward its 2013 capex to US$9.5-10 billion. The foundry previously set capex for the year at US$9 billion.
In addition, Chang reiterated his previous remark that production of TSMC’s 28nm wafers and revenues generated from the process in 2013 will triple those of 2012. The node technology will continue to play the major driver of TSMC’s revenue growth in 2013, said Chang, adding that the foundry’s share of the 28nm foundry market will remain high this year.
The essence:
- Cadence and TSMC Strengthen Collaboration on Design Infrastructure for 16nm FinFET Process Technology [press release, April 8, 2013]
- Imagination and TSMC Strengthen Technology Collaboration [press release, March 25, 2013] TSMC optimising 16nm FinFET design flows using PowerVR GPUs to drive mobile performance
… As part of this new phase of their relationship, Imagination will work closely with TSMC to develop highly optimised reference design flows and silicon implementations using Imagination’s industry-leading PowerVR Series6 GPUs combined with TSMC’s advanced process technologies, including 16-nanometer (nm) FinFET process technology.
Imagination and TSMC R&D teams will also work together to create fully characterised reference system designs, utilizing high bandwidth memory standards and TSMC’s 3D IC technology capability to demonstrate new levels of system performance and capabilities while retaining all the essential characteristics of power, silicon area and small package footprint demanded by high volume mobile SoCs. …
… “Just as memory drove silicon processes in the ‘80s and ‘90s, and CPUs drove processes further in the late ‘90s and ‘00s, high performance mobile GPUs for graphics and compute applications are one of the major drivers for our most advanced process technologies,” says Dr. Cliff Hou, TSMC Vice President, R&D. “We’re pleased to be working with Imagination, an established leader in mobile and embedded GPU IP, to understand how best to use PowerVR GPUs to work with us to optimize future generations of our most advanced process technologies, and advanced system design techniques.” …
This close cooperation will significantly help TSMC to reach mass production at 16nm node in H2 2014 at the latest, as shown by the advanced technology ramp-up information at TSMC given below:
Back in November it was reported that TSMC 16nm FinFET rollout to come earlier than expected, says Digitimes Research analyst [Nov 8, 2012]:
Taiwan Semiconductor Manufacturing Company (TSMC) is expected to ramp up 20nm production ahead of schedule, and also put its 16nm FinFET process into production far earlier than expected, according to Digitimes Research analyst Nobunaga Chai.
Chai indicated that information revealed by TSMC at its most-recent investors meeting clearly shows that the foundry has made significant progress in the development of advanced process technology, especially its first FinFET process that will be at 16nm. TSMC’s 16nm FinFET process should be able to enter mass production in less than one year after ramping up production of 20nm chips, Chai predicts.
Speculation has been circulating that TSMC’s 20nm process will help the foundry attract its first orders for application chips from Apple. Chai said that he expects TSMC’s 16nm FinFET process to play an important role in Apple’s “breakthrough” product. TSMC’s 20nm process is likely to grab orders for Apple’s next processor, which could be merely an upgrade of the existing A6 version.
During a Q&A session at TSMC’s recent investors meeting, company CFO Lora Ho revealed that the foundry’s 20nm process has received around 50 product tape-outs – about one-fifth of TSMC’s previous tape-outs using 28nm process. Ho added that actual production at the newer node will not kick off until 2014.
As for 16nm FinFET, TSMC chairman and CEO Morris Chang disclosed that the company expects to start “risk” production of the process in November 2013, followed by mass production a year later.
and a few days ago came the news that TSMC to install 20nm fab equipment ahead of schedule, says report [DIGITIMES, April 2, 2013]
Taiwan Semiconductor Manufacturing Company (TSMC) plans to begin installing production equipment at its 20nm-capable facilities on April 20, about two months ahead of schedule, according to a Chinese-language Economic Dailys News (EDN) report.
Following the equipment move-in, TSMC is expected to tape out SoC products at 20nm around the end of the second quarter with initial capacity of 5,000 12-inch wafer starts per month, the report cited unnamed fab tool suppliers as indicating. The new technology node is set to enter volume production in the third quarter with monthly capacity reaching more than 10,000 wafer starts, the report said.
TSMC internally set a target of growing its capacity for 20nm products to 30,000-40,000 wafer starts monthly by the end of the first quarter, 2014, the report noted.
TSMC in April 2012 disclosed that its 20nm technology would begin volume production at Phase 6 of its Fab 12 wafer fab (Hsinchu, northern Taiwan) in 2013, and Phase 5 of Fab 14 (Tainan, southern Taiwan) will be the foundry’s second 20nm-capable fab, which is scheduled to enter volume production in early 2014.
TSMC also began construction on Phase 3 of Fab 15 (Taichung, central Taiwan) in September 2011. The module will be TSMC’s second gigafab equipped for 20nm process technology. The foundry has not provided a timeframe to volume produce 20nm products at Phase 3 of Fab 15, but already set the initial capacity at 40,000 wafer starts per month.
The evolution which led to the crucial TSMC-Imagination-Cadence collaboration at the 16nm node was:
TSMC OIP 2012 – David Harold (Director of PR, Imagination Technologies) interview [chipestimate YouTube channel, Oct 26, 2012]
Implementing and Optimising Graphics IP in SoCs [Imagination Technologies presentation at TSMC OIP 2012, Oct 16, 2012] by Steven Riddle
Abstract
As major IP blocks such as GPUs increasingly dominate the area, power and performance of next generation SoCs, traditional “Soft IP” fully synthesisable, process-neutral solutions need to be re-evaluated to maintain the optimum balance between maximum portability and maximum performance. In this paper, we will discuss the techniques being used by Imagination and its partners to address some of the highest performance corners of this envelope, and how the characteristics of the latest processes such as 28HPM and beyond are being taken increasingly into account when designing future Soft IP high performance solutions.
Imagination highlights how GPUs are driving silicon performance and SoC innovation [press release, Oct 16, 2012]
Imagination’s engineers to present paper on GPU Optimisation Techniques at TSMC’s Open Innovation Platform Forum
San Jose: Imagination Technologies, a leading multimedia and communications technologies company, observes that the growth in performance of mobile GPUs, such as its PowerVR IP cores, is driving future generations of silicon process and packaging technologies, as well as SoC (system on chip) processing performance across a growing range of markets.
The GPU’s ability to deliver unprecedented processing horsepower (measured in GFLOPS) whilst also delivering amazing graphics performance per mm2 and per mW, means that GPU capabilities are becoming the dominant force driving heterogeneous processing performance in everything from mobile phones through to TVs, in-car information and entertainment, games consoles and even cloud computing.
Recognising this trend, Imagination is further developing its roadmaps, architectures and support to ensure its partners can select IP solutions optimized for the latest silicon process and SIP (System in Package) technologies, enabling them to realise the full potential of what GPUs can deliver in SoCs, both for graphics and compute capabilities.
To help its partners, Imagination is already working with leading silicon foundries to implement high performance mobile GPU-based systems delivering unheard-of levels of memory bandwidth, using the latest PowerVR Series6 GPUs combined with wide I/O memory and advanced 3DIC assembly and process technologies. Imagination is also working with foundries and EDA vendors to ensure that licensees of all of Imagination’s IP (intellectual property) cores can benefit from well-defined tool flows and optimized libraries to achieve the most aggressive speed, area and power consumption targets.
Reflecting closer ties to key foundries, Imaginations’ engineers will be speaking at the TSMC Open Innovation Platform Forum 2012 in San Jose, CA, on ‘Implementing and Optimising Graphics IP in SoCs’. Imagination will also be demonstrating its latest PowerVR GPU and VPU (video processor) as well as Ensigma RPU (radio processor) and Meta CPU IP technologies at the event (booth 201).
Says Tony King-Smith, VP marketing, Imagination: “Just as memory drove silicon processes in the ‘80s and ‘90s, and CPUs drove these in the late ‘90s and ‘00s, mobile GPUs are now becoming the most demanding on-chip function driving tomorrow’s advanced SoCs and silicon processes. We see our strengthening relationships with leading foundries, EDA vendors and library providers, as well as strategic activities with industry standards bodies such as HSA Foundation and Khronos Group, as key to ensuring we continue to drive and deliver the leading edge capabilities our customers have come to expect from us.”
More information:
– Imagination Technologies will boost mobile graphics performance through customization [VentureBeat, Oct 15, 2012]
… Imagination usually gives a “synthesizable core,” or a ready-to-go finished design, to its chip licensee partners. The partners take that core and incorporate it in their chips and take it to a foundry partner, which makes the chip. The change now will be that Imagination will optimize its cores for a particular foundry’s factory, such as a 28-nanometer manufacturing line at TSMC, so that the resulting chip will be faster and use less power.
“We’re doing this because our customers are asking for it,” said Tony King-Smith (pictured), vice president of marketing at London-based Imagination Technologies, at a press briefing in San Jose, Calif. “They say they want a chip tuned to a particular foundry.”
King-Smith said the result would be faster and lower power chips, but he couldn’t quantify how much. …
– Imagination tools graphics cores for 28 nm [EETimes, Oct 15, 2012]
…
Imagination is working with EDA tool and library developers as well as foundries to help optimize the physical layout of its GPUs. However, the company currently has no plans to sell hardened macros.
New capabilities will span a broad range of chip design areas including standard cell libraries, voltage scaling in process nodes and clock-tree optimization, Tony King-Smith, vice president of marketing at Imagination, said here the day before the opening of the TSMC event. “People are asking us to do more process tuning,” said King-Smith. “We will not deviate from our IP being fully synthesizable, however we will complement it more and more with tuned libraries and tool flows.”
“We are making the design more aware of the process with hints in the design database itself—most library vendors with an open mind will be talking with us,” King-Smith added.
Hard macros are rarely used because “no one has the same [chip] floor plan, so it’s better to tune up the flows and libraries so people can harden the designs themselves more effectively,” he added.
The extent of improvements in reduced power consumption, area or increased performance will vary greatly among design teams, depending on the time they put into the optimizations, he said, declining to provide any hard figures.
Foundries as well as SoC designers are driving the demand for more optimization, he said. Most of the effort is now going on at the 28-nm node, but programs have started at 20- and 14/16-nm nodes using FinFETs, he added.
“The foundries are coming to us when characterizing 28- or 20-nm nodes looking for reference designs for what will push their processes,” said King-Smith. “Historically, it has been memory and processors [in that role but] now GPUs are consuming the most area and power on the chip,” he said.
…
Imagination Optimizes its IP Capabilities with TSMC on Latest Silicon Process Technologies [press release, June 14, 2012]
Imagination Technologies, a leading multimedia and communications technologies company, announced its collaboration with TSMC to ensure that licensees of all of Imagination’s IP (intellectual property) cores can optimize speed, area and power consumption on TSMC’s most advanced 28nm and below processes.
By bringing together engineers from both companies, this collaboration aims to improve power, performance, and area by co-optimising TSMC process technologies and foundation IPs with Imagination’s most advanced IP cores, including its latest PowerVR GPUs.
Imagination, a member of TSMC’s Soft-IP Alliance program, is making this announcement as part of a closer relationship with TSMC. Imagination intends to validate its IP cores through the TSMC Soft-IP Alliance program.
Imagination’s IP core families in this collaboration include:
PowerVR graphics, the de facto standard for mobile, embedded and computing graphics
PowerVR video and display, the comprehensive and widely adopted range of multistandard decoder, encoder and enhancement cores for applications from mobile to ultra-HD
Ensigma communications, the multi-standard programmable communications and connectivity technology for TV, radio, Wi-Fi and Bluetooth
Meta processors, the advanced 32-bit hardware multi-threaded processor architecture that delivers the best in both general purpose and signal processing performance
Imagination is one of the world’s leading semiconductor IP suppliers, with cores which can be synthesised for a broad range of silicon processes. As more customers use Imagination’s IP cores to deliver the key high performance processing on their SoCs (System on Chip), Imagination plays a key role in the semiconductor IP segment to deliver the levels of performance demanded by leading edge customers.
Says Tony King-Smith, VP marketing, Imagination: “Many of our licensees rely on TSMC to provide them with leading edge low power, high performance silicon foundry capabilities. This strengthening of our relationship with TSMC reflects our determination to deliver the best possible SoC solutions on the latest silicon processes for our SoC IP licensing partners. We believe this initiative will ensure that Imagination’s licensees to continue to push the boundaries of what is possible for future generations of advanced SoCs.”
Says Mark Dunn, VP of IMGWorks, Imagination’s SoC implementation group: “The characteristics of the latest processes such as 28HPM and beyond have to be taken increasingly into account when designing future high performance IP-based solutions. As major blocks such as GPUs increasingly dominate the area, power and performance of next generation SoCs, design flows need to be tuned to maintain the optimum balance between maximizing IP portability and achieving the best possible performance. We believe this extensive engineering partnership will greatly benefit all of our IP partners.”
“We are delighted to be working with Imagination to deliver the full benefits of TSMC’s latest and most advanced processes for mobile and embedded applications,” says Suk Lee, Senior Director of Design Infrastructure Marketing Division, TSMC. “By leveraging Imagination’s leadership position in the market, we can help our customers to ship the most highly optimised SoCs.”
Imagination and TSMC Strengthen Technology Collaboration [press release, March 25, 2013]
TSMC optimising 16nm FinFET design flows using PowerVR GPUs to drive mobile performance
Kings Langley and Hsinchu – March 25, 2013 – TSMC (TWSE: 2330, NYSE: TSM) and Imagination Technologies (LSE: IMG.L), a leading multimedia, processor, communications and cloud technologies company, today announced the next phase of their technology collaboration.
As part of this new phase of their relationship, Imagination will work closely with TSMC to develop highly optimised reference design flows and silicon implementations using Imagination’s industry-leading PowerVR Series6 GPUs combined with TSMC’s advanced process technologies, including 16-nanometer (nm) FinFET process technology.
Imagination and TSMC R&D teams will also work together to create fully characterised reference system designs, utilizing high bandwidth memory standards and TSMC’s 3D IC technology capability to demonstrate new levels of system performance and capabilities while retaining all the essential characteristics of power, silicon area and small package footprint demanded by high volume mobile SoCs.
As GPUs increasingly dominate the area, power and performance of next generation SoCs and the options available to designers using advanced silicon processes become more complex, design flows and libraries need to be optimally tuned to enable design teams to achieve the best possible performance, power consumption and silicon area in ever more demanding timescales. To address these challenges, Imagination and TSMC are investigating how the characteristics of the latest processes, such as 16FinFET, influence the design of high performance IP-based SoCs.
Says Hossein Yassaie, CEO of Imagination: “Many of our licensees rely on TSMC to provide them with leading edge low power, high performance silicon foundry capabilities. Through advanced projects initiated under this partnership, Imagination and TSMC are working together to showcase how SoCs will transform the future of mobile and embedded products. We are delighted to announce our strengthening relationship with TSMC, and look forward to seeing the fruits of these projects benefiting our many mutual customers.”
“Just as memory drove silicon processes in the ‘80s and ‘90s, and CPUs drove processes further in the late ‘90s and ‘00s, high performance mobile GPUs for graphics and compute applications are one of the major drivers for our most advanced process technologies,” says Dr. Cliff Hou, TSMC Vice President, R&D. “We’re pleased to be working with Imagination, an established leader in mobile and embedded GPU IP, to understand how best to use PowerVR GPUs to work with us to optimize future generations of our most advanced process technologies, and advanced system design techniques.”
Imagination IP cores for next generation SoCs
Imagination is a member of TSMC’s Soft-IP Alliance program, through which it has begun to validate all of its major IP core families so that TSMC’s customers can take full advantage of the results of this collaboration. Imagination’s IP portfolio is unrivalled in its breadth, including:
• PowerVR GPU (graphics processor) Series5, 5XT and 6 (‘Rogue’): the most widely shipped for mobile and embedded graphics and GPU Compute
• PowerVR VPU (video processor) Series3 and 4: the industry’s most widely deployed range of multi-standard video decoder and encoder cores for applications from mobile to ultra-HD
• Ensigma RPU (radio processor) Series3 and 4: the multi-standard programmable communications and connectivity technology for TV, radio, Wi-Fi and Bluetooth
• MIPS CPU and embedded processors: advanced processor architectures featuring hardware multi-threading that deliver class-leading performance from high end Android-based applications processors down to small yet highly efficient embedded processors
Cadence and TSMC Strengthen Collaboration on Design Infrastructure for 16nm FinFET Process Technology [press release, April 8, 2013]
Cadence Design Systems, Inc. (NASDAQ: CDNS), today announced an ongoing multi-year agreement with TSMC to develop the design infrastructure for 16-nanometer FinFET technology, targeting advanced node designs for mobile, networking, servers and FPGA applications. The deep collaboration, beginning earlier in the design process than usual, will effectively address the design challenges specific to FinFETs – from design analysis through signoff – and will deliver the infrastructure necessary to enable ultra low-power, high-performance chips.
FinFETs help deliver the power, performance, and area (PPA) advantages that are needed to develop highly differentiated SoC designs at 16 nanometers and smaller process technologies. Unlike a planar FET, the FinFET employs a vertical fin-like structure protruding from the substrate with the gate wrapping around the sides and top of the fin, thereby producing transistors with low leakage currents and fast switching performance. This extended Cadence-TSMC collaboration will produce the design infrastructure that chip designers need for accurate electrical characteristics and parasitic models required for advanced FinFET designs for mobile and enterprise applications.
“The FinFET device requires greater accuracy, from analysis through signoff, and that is why TSMC is teaming with Cadence on this project,” said Suk Lee, TSMC Senior Director, Design Infrastructure Marketing Division. “This collaboration will enable designers to use the new process technology with confidence earlier than ever before, allowing our mutual customers to meet their power, performance and time-to-market goals.”
“Producing the design infrastructure necessary for these types of complex, groundbreaking processes requires close collaboration between foundries and EDA technology innovators,” said Chi-Ping Hsu, senior vice president, Silicon Realization Group at Cadence. “In joining with TSMC, a leader in FinFET technology, Cadence brings unique technology innovations and expertise that will provide designers with the FinFET design capabilities they need to bring high-performance, power-efficient products to market.”
About Cadence
Cadence enables global electronic design innovation and plays an essential role in the creation of today’s integrated circuits and electronics. Customers use Cadence software, hardware, IP, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at www.cadence.com.
The future of mobile gaming at GDC 2013 and elsewhere
Laszlo Kishonti at MWC 2013 (see the video embedded later, as well as the CLBenchmark data supporting the below statement):
[1:20] Currently Mali T-600 is the first and only GPU which can run this desktop grade software. [1:27]
The Great Equalizer 3: How Fast is Your Smartphone/Tablet in PC GPU Terms [AnandTech, April 4, 2013]
… At the end of the day I’d say it’s safe to assume the current crop of high-end ultra mobile devices [T604 based Nexus 10, Adreno 320 as in Nexus 4, Tegra 3 T33 @1.6GHz as in HTC One X+] can deliver GPU performance similar to that of mid to high-end GPUs from 2006.
The caveat there is that we have to be talking about performance in workloads that don’t have the same memory bandwidth demands as the games from that same era. While compute power has definitely kept up (as has memory capacity), memory bandwidth is no where near as good as it was on even low end to mainstream cards from that time period. For these ultra mobile devices to really shine as gaming devices, it will take a combination of further increasing compute as well as significantly enhancing memory bandwidth. Apple (and now companies like Samsung as well) has been steadily increasing memory bandwidth on its mobile SoCs for the past few generations, but it will need to do more. I suspect the mobile SoC vendors will take a page from the console folks and/or Intel and begin looking at embedded/stacked DRAM options over the coming years to address this problem.
Hisilicon K3V3 to use Mali-T658 GPU, ten times the performance of Mali-400 MP [GSM Insider, March 27, 2013]
At the Mobile World Congress 2013, many people expected Huawei to unveil the Hisilicon K3V3 processor. But the upcoming processor from the Chinese company is yet to unveil to date.
According to sources from China [obviously from this SHUMABAOBEI.NET article of March 26], the Hisilicon K3V3 processor is based on the 28nm technology and it is a quad-core processor. The Hisilicon is able to clock up to 1.8GHz. It has two sets of dual-core processor. The first set is an A15 architecture dual-core and the second set is an A7 architecture dual-core processor.
The most important is the GPU inside the Hisilicon. Sources reported that the Hisilicon K3V3 comes with Mali-T658 GPU. ARM stated that the Mali-T658 has ten times better performance than the Mali-400 MP and four times better than the Mali-T604. The Exynos 4412 in Samsung Galaxy S3 and Samsung Galaxy Note 2 is using the Mali-400 MP GPU.
Look like the Hisilicon K3V3 is focusing on the graphics rather than on the numbers of core. The Hisilicon K3V3 could launch in second quarter of the year.
Related information:
–Mali-T658 GPU Extends Graphics And GPU Compute Leadership For High Performance Devices [press release, Nov 10, 2011] “To address high-end consumer requirements, the Mali-T658 GPU delivers up to ten times the graphics performance of the Mali-400 MP GPU, found in a wide range of today’s mainstream consumer products. It also features four times the GPU Compute performance of the Mali-T604 GPU, enabling a raft of new use-cases outside of traditional graphics processing, including computational photography, image-processing and augmented reality. … The ability of the Mali-T658 GPU to scale up to eight cores provides unprecedented energy-efficiency, flexibility and scalability to match the CPU and GPU performance points through one coherent interface.”
– ARM Mali-T658 GPU Arrives at the Japan Technical Symposium [ARM Multimedia blog, Nov 10, 2011] “It’s all about higher performance – twice as many shader cores and double the arithmetic pipelines per core [as the Mali-T604].”
– ARM’s Mali-T658 GPU in 2013, Up to 10x Faster than Mali-400 [AnandTech, Nov 9, 2011] which contains the following ARM roadmap clearly accelerated by a year or so, especially with the 2nd generation Mali T-600 Series 9 months later. Currently it is not clear why Mali-T658 is missing as a product on the ARM site. One reason might be that it was replaced by the more flexible 2nd generation Mal-T600 Series, especially since the PoP availability for that since January 2013 (see below).
– Hisilicon Licenses Range of ARM Mali Graphics Processors to Drive the Next-Generation of Smart Connected Devices [joint press release, May 21, 2012] “… including the market leading Mali-400 MP GPU and the latest high-performance Mali-T658 GPU.”
– Nufront and ARM Extend Partnership to Provide OEMs with Competitive Solutions for Next-Generation Smartphones, Tablets and Smart-TVs [joint press release, Sept 24, 2012] “Nufront has broadened its portfolio of ARM technology with licenses for the ARM® Cortex™-A15 MPCore™ Processor and ARM Mali™-T658 Graphics Processing Unit (GPU).”
Mali-T600 Series Completing the ARM 64-bit System Story [ARM Multimedia blog, Oct 30, 2012]
Today ARM announced the ARM® Cortex™-A50 processor series, which include ARMs first low-power 64-bit implementations of the ARMv8 architecture. These highly anticipated products bring with them not only an enhanced 32-bit CPU architecture but also open up the wider range of opportunities that 64-bit architectures offer for high performance energy efficient devices.
…
The second generation of the Cortex/Mali pairing – the Cortex-A15 and Mali-T604 is appearing now in consumer devices from Google (Samsung Chromebook and Nexus 10 Tablet) based on the Samsung Exynos 5250 which enables, like its predecessors, market leading devices in a wide range of markets
…
The combination of the Cortex-A50 and the Mali-T600 series brings to market the highest performance CPU/GPU pairing targeting energy efficient devices. The Mali-T600 series is already able to support 64-bit addressing and offers IEEE 754 compliant 64-bit floating point arithmetic; so really is “64-bit system” ready. This opens up the potential for developers to get started earlier on the GPU elements with real silicon. The Mali-T600 series of products have all been designed with support for the latest ARMv8 architecture for both 32-bit (AArch32) and 64-bit mode(AArch64). This close functional matching will become even more important as GPU Computing opens up more exciting use cases over the coming years, and ARM will continue to focus on delivering leading processor and system IP that silicon vendors can rapidly deploy. Keep watching..
Mali-T604
[ARM microsite, Nov 8, 2012]
This fourth-generation of Mali embedded graphics IP, designed to meet the needs of General Purpose computing on GPU (GPGPU), extends API support to include full profile as well as embedded Khronos™ OpenCL™ and Microsoft® DirectX®.
…
Performance
The Mali-T604 GPU delivers up to 5x performance improvement over previous Mali graphics processors and is scalable up to four cores
Mali Graphics plus GPU Compute
[ARM microsite, Nov 7, 2012]
ARM Mali Graphics with GPU Compute provides premium graphics solutions to high end electronic devices. The graphics performance capability of these products is higher than Graphics only roadmap. ARM Mali Graphics with GPU Compute Midgard Tri-pipe architecture and includes the Mali-T678, Mali-T628 and the Mali-T624.
See also: “The GPU king is doing well, long live Mali-450 MP” [ARM Multimedia blog, June 18, 2012]
ARM Launches Second Generation of MALI-T600 Graphics Processors Driving Improved User Experience for Tablets, Smartphones and Smart-TVs [press release, Aug 6, 2012]
Each of the products features a 50% performance increase* and are the first to include Adaptive Scalable Texture Compression (ASTC), a texture compression technique that originated from ARM. ASTC significantly optimizes GPU performance and increases battery life in devices, enabling an always-on, always-connected experience, and has now been adopted by the Khronos™ Group, an important industry consortium that focuses on open standards.
…
ARM continues to invest in GPU compute capabilities by integrating the leadership that ARM has in the CPU space, with ARM Cortex™ processors, and applying it to the Mali GPU architecture. GPU compute enables greater control when balancing tasks between the CPU and GPU, allowing performance of the right task by the most efficient architecture. This enables improved energy-efficiency for current and new math intensive activities, such as:
Computational photography: computational methods of enhancing or extending digital photography
Multi perspective views: the ability to have multiple views from different positions
Real-time photo editing on mobile devices: photo editing at your fingertips on your smartphone, tablet, etc.
GPU compute also extends the range of use cases possible on mass-market mobile devices, allowing features like photo editing and video stabilization to be available in a wider range of consumer products.
…
*Each of the second generation Mali-T600 Series GPUs features a 50% performance increase compared to first generation Mali-T600 products (based on industry standard benchmarks), on the same silicon process. This 50% increase has been facilitated by a combination of frequency improvements, such as optimizing the register transfer level (RTL) for increased performance, and micro-architectural improvements so that graphics are executed more efficiently.
The design of each new product addresses different performance points:
ARM Mali-T624/Mali-T628
The Mali-T624 GPU offers scalability from one to four cores, whilst the Mali-T628 from one to eight cores provides up to twice the graphics and GPU compute performance of the Mali-T624, extending the graphics potential for smartphones and smart-TVs. These products provide breathtaking graphical displays for advanced consumer applications, such as 3D graphics, visual computing and real time photo editing for smartphones and smart-TVs.
ARM Mali-T678
The ARM Mali-T678 GPU offers the highest GPU compute performance available in the Mali-T600 Series of products, delivering a four-fold increase when compared with the Mali-T624 GPU through features, such as increased ALU support. This brings a wide range of performance points to address the vibrant tablet market. The Mali-T678 offers energy-efficient high-end visual computing applications, such as computational photography, multi perspective views and augmented reality.
What is ASTC?
ASTC supports a very wide range of pixel formats and bit rates, and enables significantly higher quality than most other formats currently in use. This allows the designer to use texture compression throughout the application, and to choose the optimal format and bit rate for each use case. This highly efficient texture compression standard reduces the already market-leading Mali GPU memory bandwidth and memory footprint even further, while extending mobile battery life.
All products are designed to support the following APIs; OpenGL® ES 1.1, OpenGL ES 2.0, OpenGL ES 3.0, DirectX 11 FL 9_3, DirectX® 11, OpenCL™ 1.1 Full Profile and Google Renderscript compute.
ARM Announces 8-core 2nd Gen Mali-T600 GPUs [AnandTech, Aug 6, 2012]
…
Both the T628 and T678 are eight-core parts, the primary difference between the two (and between graphics/GPU compute optimized ARM GPUs in general) is the composition of each shader core. The T628 features two ALUs, a LSU and texture unit per shader, while the T658 doubles up the ALUs per core.
Long term you can expect high end smartphones to integrate cores from the graphics & compute optimized roadmap, while the mainstream and lower end smartphones wll pick from the graphics-only roadmap. All of this sounds good on paper, however there’s still the fact that we’re talking about the second generation of Mali-T600 GPUs before the first generation has even shipped. We will see the first gen Mali-T600 parts before the end of the year, but there’s still a lot of room for improvement in the way mobile GPUs and SoCs are launched…
ARM Announces POP IP Technology for Mali-T600 Series GPUs [press release, Oct 11, 2012]
What: ARM® today introduced the first POP™ IP solution for ARM Mali™-T600 series graphics processor units (GPUs). This latest offering of POP IP — core-hardening acceleration technology that produces the best implementations of ARM processors in the fastest time-to-market — is optimized for the Mali-T628 and Mali-T678 on TSMC 28nm HPM process technology. Mali GPUs go into a variety of end devices, including a wide range of smartphones, from high performance to mass market, as well as tablets and smart TVs. It is critical that designers can optimize their Mali GPU for their selected end applications.
Developed in synergistic collaboration by ARM’s Media Processing and Physical IP divisions, the optimized POP IP technology has been created to produce the most efficient GPU implementations at 28nm. The POP IP enabled Mali-T600 series GPU implementation results in superior performance density/watt, and significant silicon savings. Benefits of this POP IP have been proven to deliver up to 27 percent higher frequency, 24 percent lower area, and 19 percent lower power than implementations which do not use POP IP.
POP IP technology is comprised of three critical elements necessary to achieve an optimized ARM processor or GPU implementation. First, it contains Artisan® physical IP standard cell logic and memory cache instances that are specifically tuned for a given ARM processor and foundry technology. Second, it includes a comprehensive benchmarking report to document the exact conditions and results ARM achieved for the processor implementation across an envelope of configuration and design targets. Finally, it includes the detailed implementation knowledge including floor plans, scripts, design utilities and a POP implementation guide, which enables the end customer to achieve similar results quickly and with lower risk.
Why: “As the industry moves toward 28nm, designers need options that can lower their risk and help them achieve the fastest time-to-market. ARM is pleased to bring the benefits that have been experienced with POP IP usage around Cortex process implementation to Mali GPUs,” said Pete Hutton, general manager, Media Processing Division at ARM. “POP IP for Mali GPUs is not about pre-determined benchmarks, it’s about giving our partners greater flexibility by leveraging ARM’s holistic approach to explore and find the right optimization customized to the specific end-application.”
When: The POP IP for Mali-T628 and T678 on TSMC 28HPM process is available for immediate license to both existing and new licensees. The IP will be available in January 2013.
How does Mali POP help …. from: Mali POP IP Efficient GPU implementations [Dec 5, 2012]
-
ARM Mali-T628 & TSMC 28nm HPM can be used in multiple target applications.
– The sheer number of available options can make selection difficult. -
ARM has invested significant time & effort in investigating the ARM Mali-T62x PPA envelope
-
ARM have performed all our analysis using real GPU work load which has led to improvements in implementation and analysis
ARM and Synopsys Collaborate to Optimize ARM Mali GPU 20nm Implementation [joint press release, Feb 25, 2013]
Highlights:
- Combination of ARM® Artisan® physical IP, Mali™ GPU IP and Synopsys Galaxy Implementation Platform proven ready for 20nm and smaller
- On-going collaboration aims to optimize and deliver double patterning technology (DPT)-ready methodology for Mali GPU implementation
- First implementation of the Mali-T600 series of products in 20nm technologies, with learning from this implementation accelerating the product family into sub-20nm technologies
ARM (LON: ARM; Nasdaq: ARMH) and Synopsys, Inc. (Nasdaq: SNPS) today announced a collaboration to optimize performance of ARM® Mali™ graphics processing units (GPUs) in 20-nanometer (nm) and smaller process geometries using the Synopsys Galaxy™ Implementation Platform. The companies successfully taped out the first ARM Mali-T658 design using a 20nm process technology, ARM Artisan® physical IP and shader functionality. The resulting RTL-through-sign-off design flow includes double-patterning support throughout. The ongoing collaboration will help designers optimize the implementation of Mali GPUs for their target applications.
“Mali GPUs are found in most Android™ tablets and smart digital TVs currently shipping, and are one of the most popular graphics solutions for smartphones. Users’ demand for advanced graphics continues to increase, which means that optimizing GPUs for selected end devices is essential,” said Pete Hutton, general manager, Media Processing Division, ARM. “Building on a long history of successful collaborations with Synopsys, this implementation will enable designers to optimally implement ARM Mali-T600 family GPUs using Synopsys tools in sub 20nm leading-edge process technologies.”
The Mali-T600 series includes five members (Mali-T604, Mali-T624, Mali-T628, Mali-T658 and Mali-T678), which have all been designed to provide exceptional graphics performance and they feature the first graphics technology to bring GPU compute functionality into mobile devices. This combined functionality brings additional hardware complexity which is further compounded by the new double-patterning requirements introduced by 20nm and below technologies.
Smaller process technologies, such as 20nm and below, require a highly integrated design flow for fast closure while delivering optimal results. The collaboration used the Galaxy Implementation Platform to produce a methodology tuned for the Mali GPU with ARM Artisan physical IP in 20nm. Primary tools used included Synopsys’ Design Compiler® synthesis, Formality® formal verification, DFTMAX™ and TetraMAX® test, IC Compiler™ layout, StarRC™ extraction and PrimeTime® timing analysis and signoff. In addition, IC Validator In-Design capabilities for physical verification were used during the implementation process to speed design closure. The methodology also benefitted from the use of DC Explorer & Dataflow Analyzer to perform early exploration, especially of floorplans and macro placement so critical to GPU performance.
“Twenty-nanometer and smaller process technologies introduce new complexity requiring early and deep technical collaboration among semiconductor ecosystem partners,” said Antun Domic, senior vice president and general manager, Implementation Group, Synopsys. “Through this collaboration with ARM, the Synopsys Galaxy Implementation Platform with In-Design physical verification combines with the ARM Mali IP and Artisan physical IP to provide a proven, DPT-compliant solution that will help accelerate the time to design closure on complex SoCs at 20 nanometers and below.”
ARM Mali SeeMore Demo: Lighting Effects, OpenGL ES 3 & Enlighten Engine – GDC 2013 [ARMflix YouTube channel, March 28, 2013]
More information:
– Mali Developer Tools, Augmented Reality, Lighting, SDKs & More at GDC [ARM Multimedia blog, April 2, 2013]
– Meet the experts in mobile graphics at GDC 2013 [With Imagination Blog, March 20, 2013]
– Imagination delivers latest version of leading tools for game development at GDC 2013 [press release, March 25, 2013]
Kishonti CLBenchmark Mali-T600 GPU Compute (MWC 2013) [ARMflix YouTube channel, March 5, 2013]

Source: CLBenchmark Results Database as of April 6, 2013.
– Intel® Core™ i3-3240 Processor (2 cores, 4 threads, 3M Cache, 3.40 GHz)
– Intel® Celeron® Processor B820 (2 cores, 2 threads, 2M Cache, 1.70 GHz)
– AMD A4-5300 (2 cores, 1M Cache, 3.40 GHz)
– AMD A6-4400M (2 cores, 1M cache, 2.7 GHz)
The interpretation of the above benchmark apps see at the very end of this post
Note that in pure GLbenchmark performances against the latest Apple tablet the T604 is underperforming and even not significantly higher against some other tablets:
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- Nexus 10 GPU: Mali T604 (four cores) @500MHz
- iPad Mini GPU: SGX543MP2 (two cores) @250MHz
- iPad (4th generation) GPU: SGX554MP4 (four cores) @300MHz
- iPad (iPad 3) GPU: SGX543MP4 (four cores) @250MHz
- Onda V812 and Onda V972 have an SGX544MP2 (two cores) GPU
This might explain quite well why ARM was heavily pushing ahead with its 2nd generation T600 Series. (See also AllWinner A31 and A31s with PowerVR graphics [my other ‘USD 99 Allwinner’ blog, Jan 3 – March 29, 2013] for complete understanding of Imaginations’s PowerVR competition).
OpenCL benchmark CLBenchmark running on Google Nexus 10 (Android 4.2.1)! [KishontiLtd YouTube channel, Feb 12, 2013]
ARM Mali-T604 GPU running OpenCL at MWC13 [LEAPconf YouTube channel, Feb 27, 2013]
The Future of Mobile Gaming Panel Interview at GDC 2013 [ARMflix YouTube channel, April 3, 2013]
More information: What is the Future of Mobile Gaming? GDC Panel Summary [ARM Multimedia blog, April 3, 2013]
… The panel got off to a fine start with a debate on the importance of AAA gaming in the mobile space. This brought out a range of opinions from AAA being the main path for mobile and the mobile experience, with many believing that consumers are looking for bigger and better experiences from gaming on their mobile devices, and that AAA is key in creating the ‘wow’ factor for the next generation mobile devices.
Consumers will need high-end content like AAA quality games to drive the use of higher performance mobile devices. The alternative opinion was that with innovation being applied to casual gaming, the expectation is that we will move away from the current categories of games with an even larger number of gaming categories – with elements of regional aspects being built into the gaming experience. David from Unity talked about how short the half-life of games were at only 2 years compared to films which are 5-10 years. …
Remark: AAA Game [By Warren Schultz, About.com Guide, May 23, 2012]
A AAA game, or pronounced “triple-A game”, is generally a title developed by a large studio, funded by a massive budget.
These games will have a marketing budget in the multiple-millions of dollars, and are planned to earn out in excess of one million titles sold. Investors/publishers expect a multiple-of-cost return on their investment. In order to recoup general development costs, publishers will generally produce the title for the major platforms (currently Xbox 360, PS3, and PC) to maximize profits, unless it is a console exclusive, in which case the console maker will pay for exclusivity to offset the loss of potential profit to the developer.
Pronunciation: triple-A game
Glue Mobile representative in the beginning of the above video is essentially stating that mobile only gaming sooner or later would disrupt the console industry. So it is worth to take a look at the relevant excerpts from Glu Mobile Corporate Overview, Presentation at Roth Capital Investor Conference [March 18, 2013]:
Interpret’s New GameByte™ Data Shows Only Half of All Gamers Play Retail Console Games [Interpret LLC press release via BusinessWire, April 4, 2013]
Interpret, a leading entertainment, media and technology market research firm, today announced top-level findings from GameByte™, a syndicated study designed to understand cross-platform digital gaming adoption and behavior in ten global markets.
The service, now in its second year, studies consumers (age 6-64) of every form of video gaming, including both traditional retail business models and digital business models. The latest data reveals that 96% of all US gamers have played some form of digital game in the past six months. By contrast, only 53% of US gamers have played a traditional retail console game in the same period.
“The trend carries across all ten countries covered by GameByte,” said Jason Coston, senior analyst at Interpret. “If you’re a gamer, you’re a digital gamer. Retail console games still capture a significant portion of gamers, but several digital business models now command just as much market share: mobile game apps, social network games on PC, and casual games on PC.”
GameByte data also confirms the ubiquity of digital gaming in other countries traditionally focused on consoles, such as the UK and Japan. Ninety-four percent of UK gamers now play digital games, as well as 87% of Japanese gamers.
Interpret will soon roll out in-depth reports covering revenue sizes and gaming attitude and behavior in each territory over the coming months.
What Forced Riccitiello Out at Electronic Arts? [Bloomberg YouTube channel, March 18, 2013]
EA: Demise of console gaming ‘very premature’ [GameSpot, April 1, 2013]
COO Peter Moore says even though mobile is growing, gamers continue to show enthusiasm for core titles.
The demise of traditional console gaming is not a reality the industry faces, according to Electronic Arts chief operating officer Peter Moore. Speaking with Bloomberg TV, Moore said even though the mobile space has grown, gamers still want core titles they can play on a big screen.
“The console business is still a core part of our business; it’s the majority of our business. The demise of console gaming is very premature as far as we’re concerned,” Moore said.
“We still have thousands of people focused on developing current-generation Xbox 360 and PS3 games, as well as people focused now on the next generation when that finally arrives,” he added. “And so, people still want core games. People want to sit back in their living rooms, take advantage of their HD TVs, and and play fully immersive games like [Battlefield 4].“
Also during the interview, Moore said he expects EA’s digital sales–which includes mobile, downloadable content, and subscriptions–to possibly overtake its traditional packaged goods business by 2015.
“In two years we could be looking at the tipping point where digital becomes bigger than the traditional core,” Moore said.
Moore is believed to be a leading candidate to take over as the next EA CEO. He would not comment on this conjecture, but praised John Riccitiello for leaving the company in “tremendous shape.” Moore said one thing the new EA CEO needs to do is execute.
“We did not executive to the level that we needed to in [fiscal year 2013] and [John Riccitiello] took accountability for that. And I think the future CEO will focus on pure execution because all the ingredients are there; we have the world’s best developers, we have a tremendous publishing pipeline, and we’ve made the hard decisions about our platform.
Meet the ARM Mali-T604 [ARMflix YouTube channel, Nov 10, 2010]
ARM TechCon 2012 – Consumer Products Announced based on ARM Mali-T604 [ARMflix YouTube channel, Nov 5, 2012]
The Mali-T604 is available only with Samsung Electronics as per Global Businesses Select ARM Mali GPU Technology [News on the Mali Developer Center of ARM, Feb 25, 2013]
Samsung Electronics
“Samsung Smart TV has been leading market in transforming the viewing experiences of consumers in the living room. Through the adoption of the quad-core ARM Cortex-A15 processor and Mali-T604 GPUs, Samsung Smart TV, including the world’s first quad-core built-in F8000, will enable a new way of enjoying content on TV with innovative user interfaces and faster performance,” said Cheul-Hee Hahm, Master of R&D Team, Visual Display Business, Samsung Electronics, Co., Ltd.
In 2013 there will be a significant increase in the number of mass market smartphones based on Mali-400 and Mali-450 GPUs, and of high-end phones taking advantage of the high performance of the Mali-T600 family.
ARM® Mali™ Timbuktu2 based on Samsung® Exynos™ 5 Dual [ARMflix YouTube channel, Sept 10, 2012]
Note that mobile gaming as one should talk about the new Mali products in a more general context, such as: ARM Mali GPUs turn GPU Compute into reality at MWC [News at Mali Developer Center, Feb 22, 2013]
When:
25th – 28th February 2013, MWC, Barcelona, Spain.
Where:
ARM stand at Mobile World Congress, Hall 6 Stand 6A31.
What:
ARM will showcase a range of Mali™ GPU Compute use cases running on devices, demonstrating the benefits of Renderscript and OpenCL.
ARM Mali GPUs are the first to bring the benefits of GPU Compute to mobile devices. ARM is also the first IP vendor to pass OpenCL 1.1 Full Profile Khronos conformance test. GPU Compute ensures that the right task is placed in the right place at the right time, enabling greater performance efficiencies.
In a world where smartphones and tablets act as our primary compute platform for more than accessing the internet and social media, but also used to create and view videos and experience on-the-go gaming, leading companies are discovering new ways to ensure technology is making the phone last longer and do far more than ever before
You’ll discover how running a task on a GPU is faster, while enabling other tasks to be run at the same time. See firsthand how smart allocation of the tasks is far more efficient and is seamless to the user. GPU compute opens up new use cases whilst existing tasks are done more efficiently.
Mali GPUs are the first graphics technology to support Google Renderscript Compute, enabling real devices to bring new exciting features to consumers.
ARM is the first to offer Full Profile OpenCL™ support for mobile devices. ARM will show how OpenCL can be used in applications including high accuracy facial detection and multi-face detection – improving photography on mobile devices as well as creating significant performance improvements.
ARM continues to build a thriving and strong ecosystem around Mali GPU Compute, with strategic collaborations from leaders and experts across the whole industry. This is opening new markets for ARM partners and adding value to Mali GPU Compute users.
Computational Photography
A key initial area to benefit from GPU compute – you will also be able to see the performance improvement possible when real-time image filters are applied to a camera feed and the performance improvements possible by moving the task from the CPU to the GPU. This demonstration shows the accelerations in image processing content made possible by Renderscript. ARM is committed to delivering more performance within a mobile power budget through innovative technologies which ensure a compute task is completed on the most energy efficient processing element. GPU Compute and big.LITTLE™ processing are the most recent examples of new technologies ensuring the right task can be run in the right place in the system.
By supporting GPU Compute ARM Mali GPUs are expanding the potential use cases for tablets and smartphones:
RS Benchmark from Kishonti will run for the first time on a mobile based GPU showing the key features that GPU enables – only possible with Mali-T604
Gaming
GPU Compute is also improving the gaming experience. You will see how a combination of OpenGL® ES 3.0 and OpenCL APIs offer a wider range of effects not seen before on mobile devices. OpenCL opens new levels of physics simulations and OpenGL ES 3.0 showcases effects such as showing the application of high dynamic range, adaptive luminance tone mapping and atmospheric scattering – features only normally seen in PC or console level gaming experiences.
Why:
ARM Mali GPUs are the first GPUs focused on the mobile space showing GPU Compute is a reality. GPU compute will enable:
New use cases previously not possible to perform on a mobile device enhancing the user experience
Make previous tasks more efficient – in conjunction with ARM big.LITTLE technology, GPU Compute is critical to running tasks using the most efficient part of the SoC
Synthesis Super-Resolution Scaler Demo on Exynos 5 Dual Powered Tablet at MWC 2013 [SamsungExynos YouTube channel, March 19, 2013]
Note that Samsung selected a PowerVR SGX544MP GPU core from for its Samsung Exynos 5410 Octa processor (or simply Exynos 5 Octa) as indicated by The PowerVR SGX544, a modern GPU for today’s leading platforms [With Imagination blog, March 13, 2013]. For other information see Samsung Announces the Availability of Exynos 5 Octa for New Generation of Mobile Devices [Samsung Semiconductor press release, March 15, 2013]. This first big.LITTLE processor, also first by being manufactured using Samsung’s latest 28-nanometer (nm) HKMG (High-k Metal Gate) low power process and power-saving design, was released with the latest high-end and high-volume smartphones from Samsung, the Galaxy S 4 (“Samsung Altius” which also used in other half of the models a quadcore Qualcomm Snapdragon 600 APQ8064T SoC, manufactured by TSMC). See also: Samsung Introduces the GALAXY S 4 – A Life Companion for a richer, simpler and fuller life [March 14, 2013].
Samsung Exynos 5 Dual [Samsung microsite, Feb 28, 2012]
World First ARM Cortex A-15 based 1.7 GHz Dual-Core Mobile Application Processor
Exynos 5 Dual is the world’s first A-15 Dual Core mobile CPU, presented by Samsung Semiconductor. Using 32nm HKMG (High-K Metal Gate) process technology, the 1.7GHz dual core Exynos 5 Dual brings unmatched performance to your leading-edge mobile devices while maintaining low power consumption
Multitask with a Power, Energy Efficient SoC
Exynos 5 Dual, using 32nm HKMG*, is designed to meet your graphic-intensive, multi-task and power efficient requirements. It performs nearly two times faster than the existing Cortex A9-based dual core processor, with an amazing 30% lower power consumption than our previous Exynos process developed on a 45nm process. Exynos 5 Dual is well qualified to lead the high-end mobile application processor market.
*HKMG process – : High K Metal Gate Process
See more: Process Technology – 32/28nm | Samsung Semiconductor [Feb 16, 2012]
Enjoy New level of 3D gaming and reading experience
World`s highest class mobile 3D graphic processor makes games and images come alive! You will feel like you’re actually part of the game. Featuring stereoscopic 3D, Exynos 5 Dual could take you right to the middle of the cheering audience of your favorite football game. Enjoy reading? The Exynos 5 Dual supports WQXGA provides high resolution for clear readability. It’s nearly like reading an actual newspaper.
Get your Mobile devices well connected to WQXGA display!
With Exynos 5 Dual, enjoy web-surfing, e-mailing, photos and videos at the best possible resolution, WQXGA, currently available for mobile devices. Exynos 5 Dual is equipped with embedded Display Port (eDP) interface, compliant with panel self refresh (PSR) technology. The PSR function instructs the application processor not to send image data to the LCD panel when the set is displaying still image, reducing power consumption. Exynos 5 Dual provides 12.8 GB/s memory bandwidth with 2-port 800MHz LPDDR3 for heavy traffic operations. Plus, various scopes of booting interfaces, (SATA, UART, USB3.0, eMMC4.5) guarantees our end users crisp and sharp multimedia transmission.
Play 3D Stereoscopic video smoothly on your Full HD siplay without ever Encoding
Exynos 5 Dual`s powerful 8 megapixel resolution image signal processor fully supports best-in-class cameras with high resolution video recording and playback. The 1080p 60 fps multi format codec enables the highest quality FHD videos. Additionally, your device will be able to play almost any type of video format with integrated MFC (Multi Format Codec)
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Samsung Announces Industry First ARM Cortex-A15 Processor Samples for Tablet Computers [Samsung Semiconductor press release, Nov 30, 2011] “The Exynos 5250 [>>> Exynos 5 Dual] is currently sampling to customers and is scheduled for mass-production in the second quarter of 2012.”
-
Samsung Opens New Opportunities for Mobile App Development with the Arndale Community Development Board [Samsung Semiconductor press release, Oct 26, 2012] “Arndale enables next generation of mobile applications development with the Exynos 5 Dual SoC, the world’s first production solution based on the ARM Cortex-A15 MPCore processor”
[Exynos 5 Dual] Arndale Board Video is NOW available! [Samsungsemi1 YouTube, Feb 7, 2013]
Enjoy the Ultimate WQXGA [2560×1600] Solution with Exynos 5 Dual [Samsung whitepaper, July 9, 2012]
…
World’s Best 3D Performance
Currently, the 3D graphics engine in mobile operating systems is used for 3D rendering and for all basic graphic work on the screen. Because the 3D graphic engine operates UI overlay, homescreen, 3D games, and more, 3D performance has become a very important feature for measuring Mobile AP’s overall performance. The 3D performance in the Exynos series has always been beyond compare; however, Exynos 5 Dual will raise the bar for mobile AP’s 3D performance even higher.
Screen resolution is directly related to 3D performance. WQXGA resolution is four times better than WXGA, meaning that mobile APs must deliver 3D performance at least two times better than the previous generation. To meet the standard of WQXGA resolution, mobile AP requires a new 3D engine and architecture.
Samsung System LSI worked closely with ARM to achieve the quad core Mali-T604, the most advanced mobile 3D engine to date. With Mali-T604, Exynos 5 Dual delivers two times better GPU performance than Exynos 4. Since Exynos 4 has more than enough 3D performance to satisfy WXGA [1280×800] resolution, Exynos 5 Dual is the only mobile AP that can handle WQXGA content with 60fps updates.
In addition, the 3D feature of Exynos 5 Dual fully supports GPGPU, including openCL v1.1 full profile.
GPGPU is a solution that distributes the CPU’s computation workload to the GPU. In GPGPU support, the floating point performance and precision of GPUs are the key factors. While CPUs can handle 64-bit floating point (double-precision), most mobile GPUs can only handle 32-bit floating point (singleprecision). Exynos 5 Dual is the first mobile AP that can run double precision floating point and full precision with outstanding 72GFlops floating point performance. With this functionality, a developer can handle more precise and heavy computation works by simultaneously using Exynos 5 Dual’s cortex-A15 dual cores and quad Mali-T604 cores performance.
…
Arndale Board Exynos 5250 ARM Cortex-A15 Mali-T604 Development Board [Charbax YouTube channel, Nov 1, 2012]
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Samsung’s Exynos 5 Dual Application Processor Drives Industry’s Highest Resolution on Google’s Nexus 10 Tablet [Samsung Semiconductor press release, Nov 13, 2012]
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Samsung Exynos 5 Dual Powers the New Google Chromebook [Samsung Semiconductor press release, Nov 21, 2012]
Samsung Exynos 5 Dual processor [Samsungsemi1 YouTube, Nov 2, 2012]
Samsung Exynos 5 Dual Processor (ARM® Cortex™-A15 based Dual core processor) at ARM techcon [Samsungsemi1 YouTube, Nov 1, 2012]
Exynos 5 Dual [Application Processor Product Catalogue | Samsung Semiconductor, April 26, 2012]
Features
Dualcore/LPDDR2/LPDDR3/DDR3Dualchannelmemory/
WQXGA60fps3Dgraphicsupport/32nmHKMGprocess/
1080p60fpsmultiformatcodec/8Mpix30fpsEmbeddedISPPackage
SCP:1088FCFBGA/POP:1036FCFBGA
General Description
An application processor, or SoC (System on a Chip), is a microprocessor with a specialized architecture for deployment in embedded systems, such as digital still/video cameras, digital/smart TVs and set-top boxes, and automotive systems, among others. An SoC operates at frequencies from several hundred MHz to a few GHz, and is architected to deliver significant computing performances at low power consumption levels in limited board spaces. High-end SoCs often contain multiple cores, enabling them to deliver exceptional performances in applications such as digital imaging and multimedia devices.
Current-generation SoCs are capable of running full-fledged versions of modern operating systems, providing the user a rich, interactive interface on devices such as smartphones and tablet computers. Almost all the latest SoCs have the ability to decode a majority of multimedia codecs, and contain hardware engines to deliver enhanced multimedia experiences to the user. They also contain dedicated MMUs (memory management units) to manage the memory for applications being run on the device. Recent SoCs also have a multitude of peripheral connectivity solutions on the chip, offering the designer extensive control in providing connectivity options on the device. SoCs are application specific, and contain features targeted towards the intended deployment segment. Thus, an SoC designed for a mobile handset would include front-end GSM RF functionalities on-chip, which would be absent in an SoC designed for deployment in a digital still camera. An increasing number of SoCs, however, are now offering a wide range of features, making the processor suitable for deployment on any application. Samsung is a worldwide leader in providing the most advanced, efficient, and customizable SoC solutions for deployment on a wide range of platforms, such as digital imaging, multimedia, and mobile communication and computing. Samsung’s line of SoCs offers the highest performance, thermal stability, reliability, and I/O density in the smallest form factors at the lowest power consumption levels. Worldwide, Samsung is the preferred provider for SoC solutions for a majority of developers and OEMs for deployment on the broadest computing and communication devices and platforms.
Detail Features
- CortexA15 dual core subsystem with 64-/128-bit SIMD NEON
- 32KB (Instruction)/32KB (Data) L1 Cache and 1MB L2 Cache
- 128-bit Multi-layered bus architecture
- Internal ROM and RAM for secure booting, security, and general purposes
- Memory Subsystem
– 2-ports 32-bit 800MHz LPDDR3/DDR3 Interfaces
– 2-ports 32-bit 533MHz LPDDR2 Interfaces- 8-bit ITU 601 Camera Interface
- Multi-format Video Hardware Codec: 1080p 60fps (capable of decoding and encoding MPEG-4/H.263/H.264 and decoding only MPEG-2/VC1/VP8)
- 3D and 2D graphics hardware, supporting OpenGL ES 1.1/2.0/Halti, OpenVG 1.1 and OpenCL 1.1 full profile
- Image Signal Processor : supporting BayerRGB up to 14bit input with 14.6MP 15fps, 8MP 30fps through MIPI CSI2 & YUV 8bit interfaces and special functionalities such as 3-dimensional noise reduction (3DNR), video digital image stabilization (VDIS) and optical distortion compensation (ODC)
- JPEG Hardware Codec
- LCD single display, supporting max WQXGA, 24bpp RGB, YUV formats through MIPI DSI or eDP
- Simultaneously display of WQXGA single LCD display and 1080p HDMI
- HDMI 1.4 interfaces with on-chip PHY
- 2-ports (4-lanes) MIPI CSI2 interfaces
- 1-port (4-lanes) eDisplayPort (eDP)
- 1-channel USB 3.0 Device or Host, supporting SS (5Gbps) with on-chip PHY
- 1-channel USB 2.0 Host or Device, supporting LS/FS/HS (1.5Mbps/12Mbps/480Mbps) with on-chip PHY
- 2-channel USB HSIC, supporting 480Mbps with on-chip PHY
- 1-channel HS-MMC 4.5
- 1-channel SDIO 3.0
- 2-channel SD 2.0 or HS-MMC4.41
- 4-channel high-speed UART (up to 3Mbps data rate for Bluetooth 2.1 EDR and IrDA 1.0 SIR)
- 3-channel SPI
- 1-channel AC-97, 2-channel PCM, and 3-channel 24-bit I2S audio interface, supporting 5.1 channel audio
- 1-channel S/PDIF interface support for digital audio
- 4-channel I2C interface support (up to 400kbps) for PMIC, HDMI, and general-purpose multi-master
- 4-channel HS-I2C (up to 3.1 Mbps)
- Samsung Reconfiguration Processor supports low power audio play
- MIPI-HSI v1.1, supporting 200Mbps full-duplex
- C2C, supporting through path between DRAM and MODEM
- Security subsystem supporting hardware crypto accelerators, ARM TrustZone and TZASC
- 32-channel DMA Controller
- Configurable GPIOs
- Real time clock, PLLs, timer with PWM, multi-core timer, and watchdog timer
CLBenchmark – High-performance compute benchmark for OpenCL 1.1 environment [CLBenchmark.com, Oct 16, 2012]
Desktop 1.1
The first professional OpenCL benchmark for desktop OSes
CLBenchmark 1.1 Desktop Edition is an easy-to-use tool for comparing the computational performance of different platforms. It offers an unbiased way of testing and comparing the performance of implementations of OpenCL 1.1, a royalty-free standard for heterogeneous parallel programming maintained by Khronos Group. CLBenchmark compares the strengths and weaknesses of different hardware architectures such as CPUs, GPUs and APUs. The test results are listed in a transparent and public OpenCL performance database.
Features:
Physics: SPH Fluid Simulation
Physics simulation has a great history in computer science, as it’s original goal was to help scientists and engineers in their design efforts. With increased computing capacity, physics got into reach of virtual world simulations, for example games. Enabling physics simulation can uplift in-game interactions into a new dimension.
In our SPH Fluid simulation, we’ve created a particle based simulation consisting of 32k particles. The results of the simulation is displayed on a surface calculated by a Marching Cubes implementation. This technique is widely adopted among games, for simulating the movement of fluids, and even smoke, or other gases.
Graphics: Raytrace
Raytracing is an image synthesis technique used in wide variety of applications such as simulation-visualization, design, and special effects in movie making. This technique is also getting more attention as it is going to be available in real-time rendering, especially for games, which will enable developers to implement life-like lighting and shading models in their titles.
Our ray trace test implements the traditional recursive ray trace algorithm and supports reflections and soft shadows and also uses global illumination rays to replace the ambient term. The renderer uses kd-tree acceleration structure with the kd-restart traversal technique. The scene consists of 600k triangles and is rendered at 2048×1024 resolution.
The problem domain is divided into a grid of tiles (or frustums) that are processed separately – this saves memory. In addition, multiple devices can process different tiles at the same time, so this test can stress even multi-GPU systems. Most of the calculations are happening in the ray traversal kernel, which tries to find the nearest triangle that intersects the ray.
Optical flow: Feature Matching
With this application we calculate the motion of the depicted object on a series of input images. For each image we calculate a vectorfield, which associates a motion vector to every pixel. These motion vectors are represented in colorspace. The color map used for this can be seen in the bottom left corner of the calculated vector field image.
In computer vision, we can consider anything as a feature which has a high vertical and horizontal gradient and thus easily recognizable. A good feature can be robustly detected over a sequence of images. By matching these features over these image sequences, we can track the movement of objects.
We implemented the Moravec interest operator for our application, because it is easily parallelizable and can be easily and effectively implemented for the OpenCL platform. We developed a block-based matching strategy for tracking features. We applied the results of feature matching in a sample application in which we aim to calculate the velocity for each pixel. For this, we use a patch-based approach, calculating the sum of square differences for the neighborhood of the features.
The algorithm works on pairs of images. The first step is feature detection and matching. Each pair of features defines a motion vector. This rare field of motion vector are then revised heuristically, to remove false matchings. The dense vector field is constructed from this revised field.
Feature detection and the dense vector field calculation heavily utilize the image IO of the device. The device should also handle an increased number of kernel launches during this application.
Image Filter
From UI visualizations to graphics content creation and photography, image filters are extensively applied. As the most frequently used image filters are suites of convolution filters, we have included the most important types in CLBenchmark. In order to thoroughly examine the capabilities of the underlying hardware architectures, we have developed multiple implementations for a single filter.
Gauss Filter A Gauss filter is widely used for “smoothing” effects and, as it is a low-pass filter in frequency domain, it is also useful as a pre-pass of image resizing (down-sampling).
Sobel Filter A Sobel filter has edge detecting property so it takes part in anti-aliasing filters and a variety of object recognition algorithms.
Median Filter Despite the Median filter is not a convolution filter, it is widely accepted in the area of noise reduction, particularly applicable against salt and pepper noise.
Programming Principles
As a priority, we are trying to provide relevant real-world applications for benchmarking purposes. However, even a well selected set of use cases cannot match every possible workload, so we have added synthetic tests also. These are included in the Programming Principles group, containing multiple implementations of general problems which real-world parallel problems could be composited into.
Scanning Inclusive prefix sum calculation. It’s the base operation of dynamic data generation and various sorting algorithms like radix sort. Multiple implementations included, such as Parallel (logarithmic) Scan on Local memory chunks and a mostly sequential case.
Bucketing Making 5 homogeneous, compacted streams of a single heterogeneous array. Only Parallel Scan based version made.
Reduction Many-to-one kind of operators like “sum of an array” are used in reductions. We’ve found addition ideal, as the operator’s computation cost is the lowest possible, and we can focus on the algorithm itself. A more specific sum also included, implemented to measure atomic addition on both global and local memory addresses.
Bitonic Merge Sort Sorting algorithms are used in a wide variety of applications for example data structures, databases, computer graphics. Bitonic merge sort is parallel sorting algorithm, first ordering sub sequences in local memory, then merging the result in global memory.
Tree-search Parallel search for multiple elements on an unbalanced tree using depth first strategy. It’s ideal to stress the device’s resistance to branch-divergency.
Availability
Community Edition:
CLBenchmark 1.1 Desktop Edition is available for community use and can be downloaded free of charge. This edition requires network connection and collects information about your OpenCL devices. This method let us supply you with proper, device specific OpenCL binaries and enables CLBenchmark to fully utilize your device and helps to achieve its peak performance.
For more information about downloading CLBenchmark 1.1. Desktop Communitiy Edition, please click here.
Corporate Edition:
CLBenchmark 1.1 Desktop Edition is also accessible for licensing, which is aimed at industry-leading technology companies for testing and optimizing their OpenCL implementations and thus bringing stable and efficient solutions to the market. Click here for more details or send us a message at sales@clbenchmark.com! Windows, OS X and generic Linux.
Media Edition:
For journalists, CLBenchmark 1.1 Desktop Edition is available in a special Media Edition. For more information, email us at pr@kishontiinformatics.com!
With 28nm non-exclusive in 2013 TSMC tested first tape-out of an ARM Cortex™-A57 processor on 16nm FinFET process technology
Cortex-A57?
– 3x performance of 2012 superphones
– 64-bit support for future consumer apps + current and future enterprise apps
– Scalable beyond 16 cores…
First Cortex-A50 series chips available from 2014
Update: TSMC 16nm FinFET to enter mass production within one year after 20nm ramp-up, says Chang [DIGITIMES, April 18, 2013]
TSMC’s 16nm FinFET process will enter mass production in less than one year after ramping up production of 20nm chips, company chairman and CEO Morris Chang said at an investors meeting today (April 18).
Chang indicated that TSMC already moved its 20nm process to risk production in the first quarter of 2013. As for 16nm FinFET, the node will be ready for risk production by the year-end, Chang said.
While stepping up efforts to bring newer nodes online, TSMC has revised upward its 2013 capex to US$9.5-10 billion. The foundry previously set capex for the year at US$9 billion.
In addition, Chang reiterated his previous remark that production of TSMC’s 28nm wafers and revenues generated from the process in 2013 will triple those of 2012. The node technology will continue to play the major driver of TSMC’s revenue growth in 2013, said Chang, adding that the foundry’s share of the 28nm foundry market will remain high this year.
Nandan Nayampally highlights the ARM® Cortex™-A57 processor [ARMflix YouTube channel, Oct 30, 2012]
Introductory information: ARM information page [‘Experiencing the Cloud’, Feb 5, 2013]
TSMC?
TSMC reports big Q4 net profit jump [Formosa EnglishNews YouTube channel, Jan 18, 2013]
Morris Chang with Jen-Hsun Huang [ComputerHistory YouTube channel, Nov 15, 2007]
Important note: The video was recorded in 2007, so an important addition has to be given in a preceding note from Morris Chang Wikipedia article:
… In 2005, he handed TSMC’s CEO position to Rick Tsai.
As of June 2009, Chang has returned to the position of TSMC‘s CEO once again [because things were not going well]. …
The essence of TSMC’s contract chip manufacturing operation, as it stands now, can be summarized by this diagram (more information around that is in the excepts included towards the end of this post from TSMC’s Annual Report released on April 2, 2013):
And here is another essential introductory information about TSMC:
TSMC OIP [Open Innovation Platform] 2012 – Sit down with Suk Lee, TSMC [chipestimate YouTube channel, Oct 26, 2012]
Investing in FinFET Technology Leadership Presented by ARM [ARMflix YouTube channel, Nov 12, 2012]
Background information:
– The future of the semiconductor IP ecosystem [‘Experiencing the Cloud’, Dec 13, 2012]
– ARM information page [‘Experiencing the Cloud’, Feb 5, 2013]
Next-generation Solutions: One Size does not Fit All by Nandan Nayampally, Director of Apps Processor Products, Processor Division, ARM [ARMflix YouTube channel, Jan 3, 2013]
ARM TechCon 2012 – Simon Segars Keynote launching the Cortex-A53 and Cortex-A57 processors [ARMflix YouTube channel, Oct 30, 2012]
Background information:
– ARM information page [‘Experiencing the Cloud’, Feb 5, 2013]
– Cortex-A57 Processor [ARM microsite, Oct 30, 2012]
– ARM Cortex-A57 – So Big is Relative but How Relative is Your Big? [SoC Design blog of ARM, Oct 30, 2012]
– ARM TechCon 2012 Day 1 – Cortex-A50 Launch, Panel Discussion and Busy Sessions [ARM Events blog, Oct 31, 2012]
– big.LITTLE in 64-bit [SoC Design blog of ARM, Nov 1, 2012]
– Cortex-A57 – Connected Community – ARM [ARM community page, Nov 12, 2012]
Finally here is the press release describing the news summarized by me in the headline of this post as “With 28nm non-exclusive in 2013 TSMC tested first tape-out of an ARM Cortex™-A57 processor on 16nm FinFET process technology”:
ARM and TSMC Tape Out First ARM Cortex-A57 Processor [joint press release, April 2, 2013]
Hsinchu, Taiwan and Cambridge, UK – April 2, 2013 – ARM and TSMC (TWSE: 2330, NYSE: TSM) today announced the first tape-out of an ARM® Cortex™-A57 processor on FinFET process technology. The Cortex-A57 processor is ARM’s highest performing processor, designed to further extend the capabilities of future mobile and enterprise computing, including compute intensive applications such as high-end computer, tablet and server products. This is the first milestone in the collaboration between ARM and TSMC to jointly optimize the 64-bit ARMv8 processor series on TSMC FinFET process technologies. The two companies cooperated in the implementation from RTL to tape-out in six months using ARM Artisan® physical IP, TSMC memory macros, and EDA technologies enabled by TSMC’s Open Innovation Platform® (OIP) design ecosystem.
ARM and TSMC’s collaboration produces optimized, power-efficient Cortex-A57 processors and libraries to support early customer implementations on 16nm FinFET for high-performance, ARM technology-based SoCs.
“This first ARM Cortex-A57 processor implementation paves the way for our mutual customers to leverage the performance and power efficiency of 16nm FinFET technology,” said Tom Cronk, executive vice president and general manager, Processor Division, ARM. “The joint effort of ARM, TSMC, and TSMC’s OIP design ecosystem partners demonstrates the strong commitment to provide industry-leading technology for customer designs to benefit from our latest 64-bit ARMv8 architecture, big.LITTLE™ processing and ARM POP™ IP across a wide variety of market segments.”
“Our multi-year, multi-node collaboration with ARM continues to deliver advanced technologies to enable market-leading SoCs across mobile, server, and enterprise infrastructure applications,” said Dr. Cliff Hou, TSMC Vice President of R&D. “This achievement demonstrates that the next-generation ARMv8 processor is FinFET-ready for TSMC’s advanced technology.”
This announcement highlights the enhanced and intensified collaboration between ARM and TSMC. The test chip was implemented using a commercially available 16nm FinFET tool chain and design services provided by the OIP ecosystem and ARM Connected Community partners. This successful collaborative milestone is confirmation of the roles that TSMC’s OIP and ARM’s Connected Community play in promoting innovation for the semiconductor design industry.
About ARM
ARM designs the technology that lies at the heart of advanced digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices. ARM’s comprehensive product offering includes RISC microprocessors, graphics processors, video engines, enabling software, cell libraries, embedded memories, high-speed connectivity products, peripherals and development tools. Combined with comprehensive design services, training, support and maintenance, and the company’s broad Partner community, they provide a total system solution that offers a fast, reliable path to market for leading electronics companies. Find out more about ARM by following these links:
• ARM website: http://www.arm.com/
• ARM Connected Community: http://www.arm.com/community/
• ARM Blogs: http://blogs.arm.com/
• ARMFlix on YouTube: http://www.youtube.com/user/ARMflix
ARM on Twitter:
• http://twitter.com/ARMMobile
• http://twitter.com/ARMCommunity
• http://twitter.com/ARMEmbedded
• http://twitter.com/ARMLowPwr
• http://twitter.com/KeilTools
• http://twitter.com/ARMMultimedia
About TSMC
TSMC is the world’s largest dedicated semiconductor foundry, providing the industry’s leading process technology and the foundry’s largest portfolio of process-proven libraries, IPs, design tools and reference flows. The Company’s managed capacity in 2012 totaled 15.1 million (8-inch equivalent) wafers, including capacity from three advanced 12-inch GIGAFAB™ facilities, four eight-inch fabs, one six-inch fab, as well as TSMC’s wholly owned subsidiaries, WaferTech and TSMC China, and its joint venture fab, SSMC. TSMC is the first foundry to provide 28nm production capabilities. TSMC’s corporate headquarters are in Hsinchu, Taiwan. For more information about TSMC please visit http://www.tsmc.com.
# # #
Form 20-F Filings with U.S. SEC (4/2/2013) for Taiwan Semiconductor Manufacturing Company Limited (TSMC 台積公司) [TSMC, April 2, 2013]
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2012
…
… Over the years, our customer profile and the nature of our customers’ business have changed dramatically. While we generate revenue from hundreds of customers worldwide, our ten largest customers accounted for approximately 54%, 56% and 59% of our net sales in 2010, 2011 and 2012, respectively. Our largest customer accounted for 9%, 14% and 17% of our net sales in 2010, 2011 and 2012, respectively. …
… We believe we are currently the world’s largest dedicated foundry in the semiconductor industry. We were founded in 1987 as a joint venture among the R.O.C. government and other private investors and were incorporated in the R.O.C. on February 21, 1987. …
…
As a foundry, we manufacture semiconductors using our manufacturing processes for our customers based on their own or third parties’ proprietary integrated circuit designs. We offer a comprehensive range of wafer fabrication processes, including processes to manufacture CMOS logic, mixed-signal, radio frequency, embedded memory, BiCMOS mixed-signal and other semiconductors. We estimate that our revenue market segment share among total foundries worldwide was 45% in 2012. We also offer design, mask making, bumping, probing, assembly and testing services.
We believe that our large capacity, particularly for advanced technologies, is a major competitive advantage. Please see “— Manufacturing Capacity and Technology” and “— Capacity Management and Technology Upgrade Plans” for a further discussion of ourcapacity.
We count among our customers many of the world’s leading semiconductor companies, ranging from fabless semiconductor and system companies such as Advanced Micro Devices, Inc., Altera Corporation, Broadcom Corporation, Marvell Semiconductor Inc., MediaTek Inc., NVIDIA Corporation, OmniVision Technologies and Qualcomm Incorporated, to integrated device manufacturers such as LSI Corporation, STMicroelectronics and Texas Instruments Inc. Fabless semiconductor and system companies accounted for approximately 85%, and integrated device manufacturers accounted for approximately 15% of our net sales in 2012.
…
We manufacture semiconductors on silicon wafers based on proprietary circuitry designs provided by our customers or third party designers. Two key factors that characterize a foundry’s manufacturing capabilities are output capacity and fabrication process technologies. Since our establishment, we have possessed the largest capacity among the world’s dedicated foundries. We also believe that we are the technology leader among the dedicated foundries in terms of our net sales of advanced semiconductors with a resolution of 65-nanometer and below, and are one of the leaders in the semiconductor manufacturing industry generally. We are the first semiconductor foundry with proven low-k interconnect technology in commercial production from the 0.13 micron node down to 28-nanometer node. Following our commercial production based on 65-nanometer process technology in 2006, we also unveiled 55-nanometer process technology in 2007. Our 65-nanometer and 55-nanometer technologies are the third-generation proprietary processes that employ low-k dielectrics. In 2008, we also qualified our 45-nanometer and 40-nanometer process technologies with ultra low-k dielectrics and advanced immersion lithography. In the fourth quarter of 2011, we have begun volume production of 28-nanometer products with first-generation high-k/metal gate transistor. In 2012, we continued 20-nanometer technology development to provide migration path from 28-nanometer for both performance driven products and mobile computing applications.
…
Our capital expenditures in 2010, 2011 and 2012 were NT$186,944 million, NT$213,963 million and NT$246,137 million (US$8,322 million, translated from a weighted average exchange rate of NT$29.577 to US$1.00), respectively. Our capital expenditures in 2013 are expected to be approximately US$9 billion, which, depending on market conditions, may be adjusted later. Prior to 2012, our capital expenditures were funded by our operating cash flow. Starting 2012, our capital expenditures were partially funded by the issuance of corporate bonds. The capital expenditures for 2013 are also expected to be funded in similar ways as in 2012. In 2013, we anticipate our capital expenditures to focus primarily on the following:
- adding production capacity to our 300mm wafer fabs;
- developing new process technologies in 20-nanometer, and 16-nanometer nodes;
- expanding buildings/facilities for Fab 12, Fab 14 and Fab 15;
- other research and development projects;
- capacity expansion for mask and backend operations; and
- solar and solid state lighting businesses.
…
… We plan to continue to invest significant amounts on research and development in 2013, with the goal of maintaining a leading position in the development of advanced process technologies. Our research and development efforts have allowed us to provide our customers access to certain advanced process technologies, such as 65-nanometer, 55-nanometer, 45-nanometer, 40-nanometer and 28-nanometer technology for volume production, prior to the implementation of those advanced process technologies by many integrated device manufacturers and our competitors. In addition, we expect to advance our process technologies further down to 20/16-nanometer and below in the coming years to maintain our technology leadership. We will also continue to invest in research and development for our mainstream technologies offerings to provide function-rich process capabilities to our customers.
…
We manufacture a variety of semiconductors based on designs provided by our customers. Our business model is commonly called a “dedicated semiconductor foundry.” The foundry segment of the semiconductor industry as a whole experienced rapid growth over the last 26 years since our inception. As the leader of the foundry segment of the semiconductor industry, our net sales and net income were NT$419,538 million and NT$161,605 million in 2010, NT$427,081 million and NT$134,201 million in 2011, and NT$506,249 million (US$17,427 million) and NT$166,159 million (US$5,720 million) in 2012, respectively. The sales in 2011 increased slightly by 1.8% from 2010, mainly due to growth in customer demand and more favorable product mix, partially offset by the effect of U.S. dollar depreciation. Our sales in 2012 increased by 18.5% from 2011, mainly due to continuous growth in customer demand and increase in sales of our 28-nanometer products, which commanded a higher selling price.
…
Technology Migration.
Our operations utilize a variety of process technologies, ranging from mainstream process technologies of 0.5 micron or above circuit resolutions to advanced process technologies of 28-nanometer circuit resolutions. The table below presents a breakdown of wafer sales by circuit resolution during the last three years:
Percentage of total wafer revenue (1) for the year ended December 31
Resolution
2010
2011
2012
28-nanometer
–
1%
12%
40/45-nanometer
17%
26%
27%
65-nanometer
29%
29%
23%
90-nanometer
14%
9%
9%
0.11/0.13 micron
12%
8%
6%
0.15 micron
4%
6%
4%
0.18 micron
13%
12%
11%
0.25 micron
4%
4%
4%
0.35 micron
4%
3%
2%
≥0.5 micron
3%
2%
2%
Total
100%
100%
100%
(1) Percentages represent wafer revenue by technology as a percentage of total revenue from wafer sales, which exclude revenue associated with design, mask making, probing, and testing and assembly services. Total wafer revenue excludes sales returns and allowances.
…
Our gross margin fluctuates with the level of capacity utilization, price change and product mix, among other factors. In 2012, our gross margin increased to 48.1% of net sales from 45.4% of net sales in 2011. The higher margin in 2012 was primarily due to higher capacity utilization and cost reductions, which contributed favorably to our gross margin by 5.5 and 2.8 percentage points, respectively, partially offset by price decline and higher portion of wafer sales in 28-nanometer technology bearing lower than corporate average margins at initial production stage, which negatively impacted our gross margin by 5.3 percentage points.
…
… Research and development expenditures increased by NT$6,572 million in 2012, or 19.4%, from 2011, mainly due to a higher level of research activities for 20-nanometer technologies and higher employee profit sharing expenses and bonus. In 2011, research and development expenditures increased by NT$4,123 million, or 13.9%, from 2010, mainly due to higher spending in developing 20-nanometer technology, partially offset by lower employee profit sharing expenses and bonus. We plan to continue to invest significant amounts in research and development in 2013.
…
Capital expenditures in 2012 were primarily related to:
- adding production capacity to 300mm wafer fabs;
- developing process technologies including 20-nanometer node and below;
- expanding buildings/facilities for Fab 12, Fab 14 and Fab 15;
- other research and development projects;
- capacity expansion for mask and backend operations; and
- solar and solid state lighting businesses
…
Employees
The following table sets out, as of the dates indicated, the number of our full-time employees serving in the capacities indicated.
As of December 31
Function
2010
2011(1)
2012(1)
Managers
3,142
3,601
3,865
Professionals
12,729
13,665
15,844
Assistant Engineers/Clericals
2,650
2,796
3,079
Technicians
14,711
15,395
16,479
Total
33,232
35,457
39,267
The following table sets out, as of the dates indicated, a breakdown of the number of our full-time employees by geographic location:
Location of Facility and Principal Offices as of December 31
2010
2011(1)
2012(1)
Hsinchu Science Park, Taiwan
20,703
20,107
21,534
Southern Taiwan Science Park, Taiwan
9,158
9,041
8,964
Central Taiwan Science Park, Taiwan
29
1,410
3,558
Taoyuan County, Taiwan
–
1,333
1,378
China
1,903
2,134
2,353
North America
1,355
1,343
1,395
Europe
48
53
50
Japan
32
32
32
Korea
4
4
3
Total
33,232
35,457
39,267
(1) Including employees of our non-wholly owned subsidiaries, Xintec Inc. and Mutual-Pak Technology Co., Ltd., since 2011.
As of December 31, 2012, our total employee population was 39,267 with an educational makeup of 3.6% Ph.Ds, 34.4% masters, 25.9% university bachelors, 12.8% college degrees and 23.3% others. Among this employee population, 50.2% were at a managerial or professional level. …
…
Major Shareholders
The following table sets forth certain information as of February 28, 2013, with respect to our common shares owned by (i) each person who, according to our records, beneficially owned five percent or more of our common shares and by (ii) all directors and executive officers as a group.
Names of Shareholders
Number of Common Shares Owned
Percentage of Total Outstanding Common Shares
National Development Fund
1,653,709,980
6.38%
Capital World Investors
1,488,857,477
5.74%
Directors and executive officers as a group
291,940,745
1.13%
Windows RT Buzz: only the naming will disappear?
Microsoft defends Windows RT as necessary disruption [CNET, March 21, 2013]
vs.
Microsoft to merge Windows RT into next-generation Windows OS [DIGITIMES, March 27, 2013]
These headlines tell everything. And don’t forget, end of March is the end of PRISM when all top level decisions for the next fiscal year have already been taken. Now put these two media reports against each other:
[Michael] Angiulo [corporate vice president, Windows Planning, Hardware & PC Ecosystem] says Microsoft has good reason to stick with the platform.“It was a ton of work for us and we didn’t do the work and endure the disruption for any reason other than the fact that there’s a strategy there that just gets stronger over time.Looking at things now like power performance and standby time and passive [fanless] form factors. When we launched Windows 8, it was really competitive with a full-sized iPad. A lot of that was made possible by the ARM [chip] architecture.If you look forward a year or two and you look at the performance output of ARM chips, those are some really capable chips. I think it has a very bright future.People are talking about legacy desktop software not running, but they don’t think about the customer benefit of only running modern apps. The only apps that you install from the Windows store are the kind, that as a customer, you can manage your rights to.Let’s say you drop that PC in a pool. Well, you get a new one and then you just redownload [the apps]. That’s the kind of model people are used to with a phone or tablet today. I can maintain all the apps in the [Microsoft] store and reset with a single switch.So, on Windows RT, the user experience stays consistent over time. That’s a big benefit. And as the number of apps grow in the store, that value promise only gets stronger.And on the ARM side, there is a propensity for a much higher percentage of PCs that are going to ship with mobile broadband [3G/4G], precisely because ARM PCs have even longer battery life [than Intel PCs] on connected standby [when a device is in standby mode but still connected to e-mail, social networking sites, and the Internet in general].” |
Microsoft will no longer launch products under its Windows RT line and will instead merge the product line into the software giant’s next-generation Windows, codenamed Blue, according to sources from the upstream supply chain.Although the PC supply chain had pushed the Windows on ARM (WoA) platform aggressively, the Windows RT’s name, which has misled most consumers into believing that the operating system is able to support all existing x86 Windows programs, the lack of apps, as well as compatibility issues have all significantly damaged demand.The next-generation of Windows is expected to make its first appearance at the Microsoft Build Developer Conference 2013, hosted from June 26-28 in San Francisco, the US.The sources believe that Wintel PC demand is likely to drop significantly before Intel and Microsoft’s next-generation products show up in the second half of the year. |
With that the strategy to stick to Windows RT as a product, but not as a name, is crystall clear. Nevertheless between these two news dates we have other news articles in the world which are casting doubts on the future of Windows RT as a product.
Look at the bulk of news headlines between March 21 and March 28 to see the kind of mixed reporting. As these headlines coming from the proper Google search:
- Is Microsoft merging Windows RT into Windows 8 for “Blue” update?
- Microsoft Surface Pro, RT, Windows 8 Phones Battle For Confused Customers: Who Wins?
- Microsoft: Windows RT Not Going Anywhere
- Intel vs. Microsoft: how Atom processors could kill Windows RT [The Verge, March 21, 2013]
- Microsoft defends Windows RT. Did it do more harm than good? [Computerworld, March 22, 2013]
- Microsoft defends Windows RT but dodges responding to key criticism [BGR, March 22, 2013]
- Microsoft Exec Promises Windows RT Will Get Better ‘Over Time’ [Business Insider, March 22, 2013]
- Windows RT to also receive Windows Blue, Surface RT users can now rejoice
- Should Microsoft Give Up on Windows RT?
- Microsoft exec: Look at the bright side of Windows RT
- Microsoft Says Windows RT Is the Future, But Can it Survive the Present? [CIO, March 22, 2013]
- Microsoft Exec Sings High Praise for ARM and Windows RT, Downplays Legacy App Support
- Microsoft Still Doesn’t Get It [Seeking Alpha, March 23, 2013]
- Microsoft: Windows RT will get better over time, just you wait
- Microsoft Stands Strong Behind Windows RT
- This Week in Tablets: Does Windows Blue spell the end for RT?
- Do we need another Windows OS? [CNET, March 23, 2013]
- Surface RT, Windows RT Dead? Microsoft Defends It Against OS Attacks
The endgame for ST-Ericsson, other SoC vendors like Allwinner to benefit tremendously from Ericsson’s advanced thin modems
As ST-Ericsson: Fundamental repositioning for modem, APE and ModAps spaces [‘Experiencing the Cloud’, Oct 8, 2012] was considered impossible after STMicroelectronics and Texas Intruments are exiting the mobile market as there is no chance to compete with aggressive SoC vendors from PRC and the market #2 MediaTek from Taiwan [‘Experiencing the Cloud’, Dec 12, 2012] now we have the endgame of ST-Ericsson as decided by its parent companies.
Note that modemless SoC vendors like Allwinner, Rockchip etc. will tremedously benefit from this type of endgame, as Ericsson will become a modem-only SoC vendor with the so called thin modem business taken over. This part of ST-Ericsson is dealing with the highly strategic and competitive LTE multimode thin modems (including 2G, 3G and 4G multimode), i.e. the well proven in last year trials Thor M7400 SoC solution (to come in devices of H2 2013), and its enhanced (with Single RF Chip Carrier Aggregation and ability to achieve 150Mbps) mass market follow-up, the Thor M7450 SoC solution (designed in 28nm, now sampling and to come in devices of 2014) based on the revolutionary architecture introduced in Thor M7400 which enables market-leading power consumption. All the so called legacy modems (as well as the remaining parts of the ST-Ericsson business) will be taken over by STMicroelectronics, but no further development will be done for them (and only selective development for the remaining parts of the ST-Ericsson business).
Financial responsibility for the respective businesses was taken over by the two parent companies from March 1st, 2013. The break up will be completed in Q3 2013. While Ericsson and STMicroelectronics will take over around 1800 and 950 people (employees and contractors) respectively. Of the remaining workforce approx. 1600 will be be made redundant in the process. For the remaining 200 employees and contractors in the so called connectivity business the future will be decided by the outcome of selling that business.
Here are
- the details,
and then
- a collection of related press releases
Details
STMicroelectronics, Ericsson End Venture After Failed Sale [Bloomberg, March 18, 2013]
“In 2009 the situation was different, we started with a great base of European customers,” STMicroelectronics Chief Executive Officer Carlo Bozotti said on a conference call. “Unfortunately this customer base has changed.”
…
Potential buyers that were approached, including customer Samsung Electronics Co., declined to make an offer, people familiar with the matter said last week. Samsung is “a great customer for us and we continue to work for a lot of products with this company,” Bozotti said today, declining to comment on any talks for Samsung taking over the venture.
STMicro, Ericsson split mobile chip unit, 1,600 jobs go [Reuters, March 18, 2013]
“All possible scenarios were considered but the option announced today was always a real possibility,” STMicro chief executive Carlo Bozotti told a conference call on Monday.
ST takes on mobile chips…but not the market [EETimes, March 18, 2013]
In a conference call Monday morning (March 18) Carlo Bozotti, CEO of ST (Geneva, Switzerland) promised continued support for ST-Ericsson’s existing products and customers but also indicated that ST would not be trying to replicate ST-Ericsson’s platform-level engagement with the mobile devices market. This approach puts a question-mark over the future relevance of ST’s fully-depleted silicon-on-insulator (FD-SOI) manufacturing process, a proprietary technology that is out of the mainstream of global CMOS manufacturing, but which has reportedly shown technical advantages for mobile applications where power consumption and battery life are key parameters.
…
“ST will not continue the so-called ModAp – ModAp is the integration of the application processor and the modem in one chip – in terms of new development,” said Bozotti during the conference call. “Of course, we will go on as long as needed with the existing products to support our customers. So we have not called – and we will not call – for any end of life.”
Moving on to stand-alone application processors, Bozotti said: “Of course our focus area is the digital consumer, is automotive. In the case of portable equipment we will not offer a complete platform for the market. However, we may develop dedicated solutions using our FD-SOI technologies for high volume requirements in the area of portable equipment.”
…
With regard to the decision to exit the joint venture Bozotti said: “This is extremely intense R&D. The dynamic of the wireless market is with increasing polarization in terms of key customers in this market. And also we are seeing an increasing trend of vertical integration of their activities including the design and manufacture of semiconductor chips,” Bozotti said.
Ericsson’s Management Hosts Strategic Way Forward For ST-Ericsson Conference (Transcript) [Seeking Alpha, March 18, 2013]
In April of 2012, last year, ST-Ericsson announced its strategic plan. And in October of 2012, Ericsson and ST together announced that we are, as parents, conducting a strategic review of the business plan and the future ownership structure of the joint venture. In — on December 10 of the last year, 2012, ST then makes an announcement that they intend to exit as a shareholder in ST-Ericsson. And then following that announcement, Ericsson, on December 20, announces to all of you that we have taken a decision to not acquire the full majority of ST-Ericsson. Now during a few months here in the beginning of the year, we have been exploring various strategic options for the ST-Ericsson assets, and that’s obviously the context of today’s call.
Key Points
- Ericsson and STMicroelectronics have agreed on a separation of the
company into three parts – Ericsson takes on thin modem operations
The aim that we have with this takeover is obviously to maximize the value. And also, we believe that the modems here have a good fit into the strategies of our company. ST-Ericsson, then, unfortunately will have to carry out the restructuring activity in the remaining — remainder of the joint venture, we’ll come back to that.
- Agreement aims to maximize assets and the future plans for both
parent companies as it relates to their respective strategies- ST-Ericsson to restructure current operations prior to separation
- The closing of the transaction is expected during Q3, subject to
regulatory approvals- Costs for implementing this strategic plan, including Ericsson’s part of
ST-Ericsson’s restructuring, is provided for in the provisions of SEK
3.3 B. taken in 2012
So how will this work? So if we look at the split-up of the joint venture, and we again start with Ericsson on the right-hand side of this slide: We take on the design, the development and the sales of the LTE multimode thin modems, and that includes, then, 2G, 3G and 4G multimode. This will be approximately 1,800 employees and contractors. The main sites will be Sweden, Germany, India and China. And we will then be financially responsible for this part of the JV from March 1, 2013.
On the ST side, they will take over the existing products in the JV other than the LTE modems, then, and then also all other related business as well as certain assembly and test facilities. This will be approximately 950 employees and with the main sites being France and Italy. And they will also then be financially responsible for that from 1st of March this year.
In the JV, then, they will — it will be then restructuring activity that have commenced today. And the remainder of the joint venture will then be, over time here, reduced and run down. And then also, we will look at selling the connectivity business. All in all, this is approximately 1,600 employees and contractors, and you’ll have around 200 of those being employees and contractors in the connectivity business. So this is the split-up of the JV.
Modems of Strategic Value for Industry
Ericsson takes control of the thin modem business targeting smartphones and tablets
– Significant amounts invested to establish industry leading technology and IP
– Leverage our heritage and investment in leading research, global standardization and industry leading infrastructure solutions- Thin modem architecture covers
– Low power, highly integrated multi-mode multiband modems for GSM/GPRS/EDGE, TDSCDMA, HSPA+, LTE (TDD/FDD), LTEAdvanced
– Widest array of frequency bands and a feature set that includes Single RF Chip Carrier Aggregation, VoLTE and IMS
First of all, we’ve said in the past that we believe that the modem assets have a strategic value to the wireless industry, so this is consistent with what we’re trying to explain here. We are taking over the thin modem business, and the target market is the smartphones and the tablets. We’ve invested significant amounts of money to establish this position from a product perspective, from a testing perspective and where we are with the thin modems today within the joint venture. This also leverages our heritage and the investment in our R&D standardization and in, of course, our leading infrastructure solutions.
In terms of the thin modem architecture and what it covers, we believe we have advantages on low power. It’s highly integrated multimode, multi-baseband, with a variety of GSM, GPRS, EDGE, TD, HSPA, LTE TDD/FDD and then LTE Advanced. So it’s very comprehensive. And of course, some of the other features that will — sets this apart: It’s a Single RF Chip Carrier Aggregation. It includes VoLTE and IMS.
Total Addressable Market
+400 m thin modem units in 2013 for smartphones/tablets- Best estimate of the market for thin modems is an ASP of approximately USD 13-18 in 2013.
- Ericsson aims to be top 3 in that market
- Connected devices: M2M, Modules (via industrial partners), and other data centric devices
- License business model towards ModAp market: +400 m ModAp market
… in terms of the market itself that we’re targeting. Again, focus on the thin modems, and we see over 400 million units on the thin modems in 2013. That’s the green area, and that’s growing at 10%. We see the average sales price of approximately $13 to $18. And it’s — our aspiration is to be in the top 3 in this market.
In addition, there are other markets to connected devices: machine-to-machine, modules, data-centric devices. And then of course, there’s an opportunity to move toward a license business model with the ModAp in the ModAp market. But we’re very clear: the thin modem is a — going to be our focus, it’s going to be a focused organization. And again, it’s a 400 million unit in 2013, moving to greater than 600 million, from a market perspective, in 2017.
…
Next Steps and Ambitions
If we then look at the next steps. So we will now obviously finalize the formal break-up of the JV. ST-Ericsson will carry out the necessary restructuring of what this will remain — will — what will remain in the JV, and then we will move on with the necessary approvals. We think that the break-up will be completed by the third quarter 2013.
If we look at the product portfolio, then. The modem 7450 will have a volume ramp-up in the first half of 2014. And then it will be — the follow-up product will be the M7500. That work — will have a volume ramp-up in the first half of 2015. When we look at these — we are excited about the modem company, obviously, and the thin modem products. We will look at success in an 18- to 24-month time frame. Again, as Doug mentioned, the — our ambition is to be top 3 in the thin modem market and, of course, that this segment should add to Ericsson overall profitability.
Introducing ST-Ericsson latest advanced LTE modem (This is a slideshow without audio) [STEricssonVideos YouTube channel, Feb 24, 2013] i.e. the M7450
[the previous transcript continued]
Question-and-Answer Session
…
So what we’ve been trying to tell you is that we take over the thin modem products, which is, today, it’s 7400 which the mass-market product will be 7450. The legacy modem products will all be with ST, so this is the thin modem business. And all the assumptions around the ramp-up and so forth is in this slide: We have — the first half of 2014 will be the volume ramp-up of 7450, first half of 2015 will be the ramp-up of M7500. So that’s the business that Ericsson is taking over. And it’s correct to assume that, this year, in 2013, we don’t think there will be a lot of revenue on these modems.
…
Q: … I guess I would have thought that, if your position in thin modem multimode LTE was that exciting and an established semis company might have been better positioned to leverage that. …
… we … think that the modem, thin modem, business has a strategic value for the industry. We think it’s important, with more alternatives. That is — obviously goes hand-in-hand with our company overall mission around the network society, 50 billion connected devices, and so forth. So from that point of view, I think the strategic intent is quite clear. I also think that we have been reviewing a lot of different strategic options. This, what we present today, is the best solution out of all the different options that we have looked at. And we are here today to really welcome the modem company into Ericsson. And we are also convinced that we will be able to add value to the industry, which we have been stating for, for quite some time now.
… first and foremost, we have a product, okay? That product is in the market. It‘s been trialed, so the development effort has been worthwhile. We also have customers. I also think that, Ericsson working with the modem company and other partners in the industry, we have a very important role to play when it comes to connecting the access points with the networks. And I think we have — I think we have a very good role to play in this, and also very skilled engineers. That kind of work together end to end.
Q: … you’ve said your ambition is to be a top 3 player in this market. So would this mean that you may have to raise your investments in this business going forward? And secondly, you mentioned good customer traction with your existing thin modems, but I believe 7400 was being sampled, too, last year. But you are essentially indicating that there will be no revenue for — from 7400 this year. So I mean, how does this change with 7450? Are you already seeing some customers signing up on the product?
… We have — first and foremost, what we will take over once this — we have gotten all of the regulatory approvals is a thin modem operation with around 1,800 employees and contractors. We think that — given the portfolio ambition and the sales ambition we have, that the resources we have in that unit will be sufficient to deliver on the ambitions. So that’s what we have said and that’s what we will repeat again.
Showcasing Thor M7400 at CES [STEricssonVideos YouTube channel, Jan 15, 2013]
[the previous transcript continued]
Just to start with the — as you say, the 7400, that has been in customer testing. It’s been in field operator testing in the past, first global field operator testing. The 7450 has always been our expected mass product. 7450 has a smaller footprint, carrier aggregation and a variety of different other attributes, but it’s based on the 7400 software that has gone through this testing. So we’ve had very positive feedback and interest on the 7400, in terms of the architecture, and certainly on the 7450 and our current plans and timelines that we have with the 7450.
Q: So basically, if I look at the market, most of your competition is moving towards an integrated model where you have baseband and apps processor, but it seems that you are trying to focus more on the modem technology. And I’m just trying to understand what do you — why do you think this strategy is going to be more successful than what your competition is doing. And also, basically, your ambition is to be a top 3 player in this market long term. Once we get there, what do you think would be the long-term profitability in this business?
What we’re doing is we have been a very focused team, just as Jan said. As we’ve made this split, it’s going to be a very focused, competent team that’s just focused on the thin modems. As we presented earlier, we believe there’s a big-enough market in the thin modem area. And certainly, our expertise is more on the modem side than the application processor side, and that’s where we want to put our focus and our strength.
… then on the profitability, I think that what we will — the way we will measure success here in this business will be — will obviously be around achieving a top 3 position in the thin modem market. We have talked about the size of that market in terms of 400 million units, approximately, for 2013; also with the ASP there of between $13 and $18. We also will measure success in getting high volumes of the 7450 modem. And then we will also measure success when this LTE thin multimode modem business adds to the Ericsson group profitability. So those are the first, I would say, midterm objectives. And as we have said before, we will measure this in an 18- to 24-months perspective, so that’s kind of the time frame. We are — we also, then, have given you an indication on the resources in the unit that we take over, and we have also said that we think that this will be sufficient for the product portfolio ambition and so forth. So I think we have given you quite a lot for you to model a possible break-even point and so forth of this business.
Q: I would like to start quickly on the — well, what you’re planning to do actually with the ModAp business. So STMicro told us this morning that they are planning to discontinue basically working on that. And you are now clearly focusing on making your same — standalone modem. But do you have the ambition to eventually license your IP so that other companies that don’t have the existing modem capabilities are able to do ModAp processors?
Yes. So our primary focus is going to be the thin modem product itself. We certainly will look at machine-to-machine connected devices and potential for licensing the thin modem to customers that have the application processor. And that’s probably where we are right now in terms of our business plan and our revenue models.
Q: … as you fairly mentioned, there’s only one company shipping such products today, but there is also a lot of roadmaps that we’ve seen from some other of your — some of your other new competitors now are planning to release this kind of products as well at the end of this year and early next year. So how do you expect that to play over the long term? Do you think you have something that already gives you a head start of 6 month or 1 year on this front?
… we feel very committed to this thin modem because we have been monitoring the progress of not only ours but our competition in terms of the attributes and the characters of the unique selling points. We’ve invested a lot in this thin modem. We’ve seen the test results and where we see going forward with the 7450. So we’re confident, but we also know it’s going to be a tough market. But as we said in the past 6 months, we believe this is an asset that’s important to the industry.
Q: … will it be treated as licensing revenues?
No.
Demonstrating 150Mbps with Thor M7450 [STEricssonVideos YouTube channel, Feb 27, 2013]
THOR M7450 – LTE ADVANCED [ST-Ericsson product microsite, Feb 24, 2013]
Bringing Carrier Aggregation to the mainstream market
With the roll out of LTE and LTE Advanced technologies, device manufacturers face a number of new challenges. Operators require terminals that support an increased number of frequency bands and consumers expect increased data speed and improved battery lifetime. Device makers, however, cannot compromise device design and will need modem solutions that can do more within the same footprint.
Carrier Aggregation is one of the most important features in LTE Advanced that helps to address these challenges. It overcomes the fragmentation of the frequency spectrum by using multiple component carriers to increase the transmission bandwidth and data rate for an individual user.
The Thor M7450 is a multimode multiband platform supporting Carrier Aggregation with a single chip RF transceiver and support for over 17 bands. The complete modem is a highly integrated two chip solution with integrated memory. It delivers download speeds up to 150Mbps and is based on the revolutionary architecture introduced in Thor M7400 which enables market-leading power consumption.
Thor M7450 solves the design challenges and adds a number of new features in a solution footprint which makes it possible for phone manufacturers add LTE advanced without increasing size.
HIGHLIGHTS
For global devices
LTE FDD/TDD, HSPA+, TD-SCDMA, GSM
Single radio transceiver with support for 17+ bands
A streamlined modem
Highly integrated two chip solution with integrated RAM and single chip RF Carrier Aggregation
Power efficient architecture
For all devices
Interfaces for data devices and smartphone application processors
Complete and pre-tested reference design
Thor M7450 Carrier Aggregation [STEricssonVideos YouTube channel, Feb 26, 2013]
THOR™ M7400 LTE AND HSPA+ [ST-Ericsson product microsite, Feb 15, 2011]
Paves the way for global LTE devices
The Thor™ M7400 is a new generation of multimode mobile broadband modem. It
supports the latest LTE and HSPA+ technologies. The small form factor and high power efficiency of the M7400 enable slim form factor smartphones, tablets and other mobile broadband enabled devices. The advanced multimode RF design offers new level of flexibility to support regional LTE FDD/TDD/HSPA bands in Asia, Europe and North America in combination with global HSPA/EDGE.
A breakthrough in modem architecture delivers an optimum combination of hardware acceleration, for lowest power consumption, and flexible execution in software allowing feature and performance enhancements in existing hardware.
Equipped with the latest communication interfaces it enables efficient integration between application processor and modem, including memory-less modem design when combining with an application processor.
HIGHLIGHTS
Truly global
LTE FDD/TDD, HSPA+, EDGE
Radio supporting up to 16 LTE/WCDMA/GSM bands
A streamlined modem
Smallest two-chip thin modem solution
Power efficient architecture
Highly integrated radio solution
For all devices
Interfaces for data devices and smartphone application processors
Memory-less modem design possible when combined with an application processor
Complete and pre-tested reference design
Making a CS fallback from LTE to 3G, and back again, while streaming video [STEricssonVideos YouTube channel, Feb 27, 2013]
CS-Fallback – An Introduction [WirelessMoves, Feb 19, 2012]
One approach to deploying LTE without packet switched voice call functionality at the beginning is to instruct mobile devices to use a 2G and 3G network when the user makes or receives a voice call and return to LTE afterwards. This solution is referred to as CS fallback and has been specified in 3GPP TS 23.272. As it’s likely that it will be deployed over time in quite a number of networks and used over many years, I thought I have once again a closer look at the specs and write a little primer about it. A little warning: This is somewhat of a propeller head post which requires some background knowledge on the circuit switched core network of GSM and UMTS and how LTE works.
…
International Roaming
As CS fallback is not a Voice over IP technology, it is likely that it will mostly be used in LTE networks before VOLTE becomes available. Furthermore, CS fallback can be used as a backup solution in roaming scenarios in which voice capable LTE devices are roaming in a foreign LTE network in which VOLTE is not available or in case no roaming agreement is in place for IMS voice services.
Pros and Cons of CS fallback
The main advantage of CS fallback is that it will enable network operators and device manufacturers to introduce LTE devices with a single cellular radio chip before VOLTE becomes available and network are deployed widely enough to prevent having to hand over the call to UMTS or GSM too often (how that is done is another story).
…
Summary
CS fallback sounds easy but from the description above I think it is quite clear that it is not quite that. A new interface to be implemented in the MSC software and the MME, the use of roaming retry functionality that is not used so far (please correct me if I’m wrong) and the new CS fallback flag in the location update message will keep network and device engineers busy for a while. A lot of effort for a “temporary” solution.
Making VoLTE [Voice over LTE] voice calls that last [STEricssonVideos YouTube channel, Feb 27, 2013]
What is VoLTE | Voice over LTE | Tutorial [Radio-Electronics.com, Feb 18, 2010]
The Voice over LTE, VoLTE scheme was devised as a result of operators seeking a standardised system for transferring voice traffic over LTE. Originally LTE was seen as a completely IP cellular system just for carrying data, and operators would be able to carry voice either by reverting to 2G / 3G systems or by using VoIP.
…
In many ways the implementation of VoLTE at a high level is straightforward. The handset or phone needs to have software loaded to provide the VoLTE functionality. This can be in the form of an App.
The network then requires to be IMS compatible.
While this may appear straightforward, there are many issues for this to be made operational, especially via the vagaries of the radio access network where time delays and propagation anomalies add considerably to the complexity.
See also: LTE / Voice calls and LTE / Enhanced voice quality [both in Wikipedia]
The world’s first dual mode high definition VoLTE [STEricssonVideos YouTube channel, Feb 26, 2013]
Company press releases
ST-ERICSSON UNVEILS ULTRAFAST THOR M7450 LTE ADVANCED MODEM WITH FIRST SINGLE RF CARRIER AGGREGATION SOLUTION [press release, Feb 24, 2013]
Thor M7450 Modem includes support for 150Mbps and an extensive number of frequency bands.
Barcelona, February 24, 2013 – Today at Mobile World Congress 2013, ST-Ericsson, a world leader in wireless platforms and semiconductors, announced the Thor™ M7450 LTE Advanced modem which uses a single radio for Carrier Aggregation. The M7450 supports all relevant 3GPP specified frequency bands having 10 flexible RF ports enabling 17 frequency bands or more in the same device. With this modem, ST-Ericsson significantly increases the number of LTE bands compared to devices currently on the market allowing device manufacturers to address a global market with less number of device variants.
With the roll out of LTE and LTE Advanced technologies, device manufacturers face a number of new challenges. Operators require terminals that support an increased number of frequency bands and consumers expect increased data speed and improved battery lifetime. Phone makers, however, cannot compromise device design and will need modem solutions that can do more in the same footprint.
“There is an ever increasing demand for mobile broadband access no matter where you are in the world, making the ability to efficiently handle data traffic a top priority for our customers and operators,” says Staffan Iveberg, Senior Vice President of Thor Modem Solutions for ST-Ericsson. “Next-generation modems need to combine extensive frequency band support to offer flexibility for operators and markets – all without increasing the modem size. ST-Ericsson is leading the way with the Thor M7450 LTE Advanced modem.”
Today, many operators only have 5 or 10 MHz bandwidth allocations in each frequency band for LTE which is insufficient for LTE Category 3 or 4 with data rates up to 100 or 150 Mbps. Carrier Aggregation allows bandwidth from two different frequency bands to be combined enabling higher data rates.
“With the Thor M7450, we are continuing to innovate in modem technology to bring increased download speed without compromising on size or power consumption,” continued Iveberg. “No one else is delivering a complete LTE Advanced modem that is both fast and power efficient in this compact size.”
The Thor M7450 is a two chip solution with integrated RAM to enable a compact size. The M7450 is designed in 28nm CMOS technology and builds on the revolutionary architecture introduced in Thor M7400 which delivers market-leading power consumption. It supports 3GPP Release 10, LTE category 4, with downlink speeds up to 150Mbps and VoLTE. With LTE-FDD, LTE-TDD, HSPA+, GSM and TD-SCDMA integrated in the same chipset, the M7450 addresses the need for a simple and cost effective solution for widespread global adoption of LTE devices.
The Thor M7450 is being demonstrated by ST-Ericsson in Barcelona this week and is currently sampling with customers.
For additional information, a white paper is available here.
CHANGING THE GAME: ST-ERICSSON UNVEILS NOVATHOR™ FAMILY OF SMARTPHONE PLATFORMS COMBINING ITS MOST ADVANCED APPLICATION PROCESSORS WITH THE LATEST GENERATION OF MODEMS [press release, Feb 15, 2011]
ST-Ericsson today announced three new application processors, the Nova A9600, A9540, A9500 together with two next generation modems the Thor M7400 and M7300 as well as two additions to its complete highly integrated smartphone platforms the NovaThor T5008 and U4500.
…
ST-Ericsson’s new Thor modems, the Thor M7400 and the Thor M7300, support the latest LTE and HSPA+ dual carrier technologies, while preserving backward compatibility with existing 3G/2G networks, in a small and highly-integrated radio solution that supports up to eight LTE/WCDMA/GSM frequency bands. These modems enable the development of truly global smartphones, tablets and many other mobile broadband-enabled devices.
…
The Thor M7400 can connect to 2G, 3G, TD-SCDMA, HSPA, HSPA+ dual carrier and LTE FDD/TDD networks. It offers peak download speeds of up to 100Mbps in LTE networks. The Thor M7400 supports voice calls via fallback to circuit-switched networks and via the VoLTE (Voice over LTE) standard, it is sampling Q2 2011.
ST-ERICSSON’S HIGH-PERFORMANCE MODEMS PAVE THE WAY FOR GLOBAL LTE DEVICES [press release, Feb 15, 2011]
… The Thor M7400 is the industry’s smallest and first two-chip LTE/HSPA+ modem, which also continues the low power consumption track record from ST-Ericsson’s market-leading HSPA+ modems. …
… “In Thor, ST-Ericsson’s engineers have achieved the optimum combination of hardware acceleration, for low power consumption, and execution in software, enabled by our in-house vector processing technology, which offers the flexibility to continuously add features and performance enhancements to existing chipset hardware,” said Jörgen Lantto, executive vice president, chief technology and strategy officer of ST-Ericsson. “Our radio solution is unique in that it supports the regional LTE FDD/TDD bands in use in Asia, Europe and North America, as well as HSPA/EDGE networks worldwide, allowing device manufacturers to offer truly global devices.”
The ThorM7400 and ThorM7300 modems are based on a common architecture, enabling ST-Ericsson and its customers to benefit from shorter time-to-market by re-using of modem certification and application processor interfaces across platforms, reducing time-to-market. The new Thor modems are also pin-to-pin compatible which enables customers to completely reuse their design across the two platforms. …
Available for operator testing and integration into devices from Q2 2011, the Thor M7400 modem can connect to 2G, 3G, TD-SCDMA, HSPA, HSPA+ dual carrier and LTE FDD/TDD networks. It offers peak download speeds of up to 100Mbps in LTE networks. The ThorM7400 supports voice calls via fallback to circuit-switched networks and via the VoLTE (Voice over LTE) standard.
…
ST-Ericsson developed high-performance vector processing (EVP) to efficiently handle complex computational tasks for all access standards. It is currently used in ST-Ericsson TD-SCDMA platforms.
ST-ERICSSON THOR M7400 MODEM SELECTED AS CES 2012 INNOVATIONS HONOREE [press release, Nov 8, 2011]
… The ST-Ericsson Thor M7400 4G multimode modem delivers the high power efficiency and compact footprint needed to enable sleek and slim form factor smartphones, tablets and other connected devices. The Thor M7400 is a groundbreaking multimode solution, supporting the latest LTE, HSPA+ and TD-HSPA mobile broadband technologies, and enables efficient integration between application processor and modem.
“The Thor M7400 sets a new standard for 4G multimode modems delivering extremely high data performance, low power consumption and size advantage over alternative solutions,” said Jörgen Lantto, executive vice president and chief technology officer at ST-Ericsson. “To further optimize its footprint, the Thor M7400 includes memory-less technology to optimally integrate with application processors in 4G mobile broadband devices. As a result, the Thor M7400 makes ultra-fast web browsing and high speed data connectivity ubiquitous, easy and reliable. We are proud to have our innovative product recognized by the Consumer Electronics Association.”
STMicroelectronics Announces Resignation of Didier Lamouche [STMicroelectronics press release, March 11, 2013]
STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronic applications, announced today that Didier Lamouche, Chief Operating Officer, whose operational role was suspended when he took the assignment as President and Chief Executive Officer at ST-Ericsson in December 2011, has decided to resign from the company effective March 31, 2013 to pursue other opportunities.
“Over the past years Didier has brought his strong contribution to ST, initially as the Chief Operating Officer, and then taking the challenging task to lead ST-Ericsson” saidCarlo Bozotti, President and CEO of ST. “We thank him for his outstanding contribution and wish him all the best for his future”.
About STMicroelectronics
ST is a global leader in the semiconductor market serving customers across the spectrum of sense and power and automotive products and embedded processing solutions. From energy management and savings to trust and data security, from healthcare and wellness to smart consumer devices, in the home, car and office, at work and at play, ST is found everywhere microelectronics make a positive and innovative contribution to people’s life. By getting more from technology to get more from life, ST stands for life.augmented.
In 2012, the Company’s net revenues were $8.49 billion. Further information on ST can be found at www.st.com
ST-ERICSSON ANNOUNCES CHANGE IN EXECUTIVE MANAGEMENT [ST-Ericsson press release, March 11, 2011]
Following the STMicroelectronics’ announcement issued earlier today, ST-Ericsson, a joint venture of STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC), announced today that Didier Lamouche, president and chief executive officer, has decided to resign from the Company to pursue other opportunities.
Hans Vestberg, Chairman of the ST-Ericsson’s board of directors, said: “Didier Lamouche came into ST-Ericsson when the company was in a very challenging situation and has been instrumental in bringing the company to the point where it is more focused on strategy execution, a much lower breakeven point and positive momentum where the new LTE modem-based products are ready for market introduction this year. On behalf of ST-Ericsson’s board, I thank Didier for his strong contribution to ST-Ericsson.”
Lamouche will remain in his current position until March 31, 2013.
ABOUT ST-ERICSSON
ST-Ericsson is a world leader in developing and delivering a complete portfolio of innovative mobile platforms and cutting-edge wireless semiconductor solutions across the broad spectrum of mobile technologies. ST-Ericsson was established as a 50/50 joint venture by STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC) in February 2009, with headquarters in Geneva, Switzerland.
www.stericsson.com
www.twitter.com/STEricssonForum
ST-ERICSSON ANNOUNCES GLOBAL WORKFORCE REVIEW [ST-Ericsson press release, March 18, 2011]
ST-Ericsson, a joint venture (JV) of STMicroelectronics (NYSE:STM) and Ericsson (NASDAQ:ERIC), today announced a plan for a global workforce review, following the announcement made today by Ericsson and STMicroelectronics about the future of the joint venture.
The proposed key steps of agreement between the parent companies include each parent taking on parts of ST-Ericsson. It is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China. It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST.
In addition, ST-Ericsson is pursuing external options for the future of the connectivity business, which employs around 200 employees worldwide.
In connection with the transfer of the majority of its workforce to the parent companies, ST-Ericsson will carry out restructuring of its current operations which could impact some 1,600 employees worldwide, out of which in a range of 500-700 are in Europe, including 400 to 600 positions in Sweden and 50 to 80 positions in Germany.
ST-Ericsson – with the support of both parent companies – will honor all obligations to employees, including those related to restructuring.
The proposed changes are subject to negotiations with work councils and employee representatives as required.
Ericsson and STMicroelectronics agree on strategic way forward for ST-Ericsson [STMicroelectronics press release, March 18, 2013]
Ericsson (NASDAQ:ERIC) and STMicroelectronics (NYSE:STM) today announced an agreement on the way forward for the joint venture (JV) ST-Ericsson. As communicated by the parent companies in December 2012, both have been working together toward a strategic solution for the JV. After months of intensive joint work, the parent companies have selected the strategic option which maximizes their respective future prospects and growth plans.
The main steps agreed upon to split up the JV are the following:
- Ericsson will take on the design, development and sales of the LTE multimode thin modem products, including 2G, 3G and 4G multimode
- ST will take on the existing ST-Ericsson products, other than LTE multimode thin modems, and related business as well as certain assembly and test facilities
- Starting the close down of the remaining parts of ST-Ericsson.
The formal transfer of the relevant parts of ST-Ericsson to the parent companies is expected to be completed during the third quarter of 2013, subject to regulatory approvals.
After the split up it is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China.
It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST.
Today, it is also announced that Carlo Ferro is appointed President and Chief Executive Officer of ST-Ericsson, effective April 1, 2013. Ferro is currently Chief Operating Officer of ST-Ericsson and succeeds Didier Lamouche who, as previously announced, will pursue opportunities outside the company. Ferro will lead the work in securing both business continuity of ST-Ericsson and effective completion of the transition phase.
Hans Vestberg, President and CEO, Ericsson and Chairman of the Board of Directors, ST-Ericsson said: “I welcome Carlo Ferro as the new President and CEO of ST-Ericsson. Carlo has over twenty years of experience in the semiconductor industry and a strong track record in driving and managing complex transformation projects. He has been a contributor to the solid progress ST-Ericsson has made the past year in terms of strategy execution and significantly lowering the breakeven point.”
“In line with what we announced in December last year, we have now moved to the next step of our exit process and found a solution with Ericsson that fully aligns with our new strategy”, said Carlo Bozotti, President and CEO of ST. “The agreement made with Ericsson represents a major step forward in reaching our new financial model target and allows us to further strengthen the skillsets of our company, by welcoming in ST, at completion, additional strong competences to fuel growth in specific key product areas. Moreover, it protects and leverages the ongoing ST-Ericsson’s business, allowing us to reinforce our relationships with key customers, both of ST and of ST-Ericsson”.
With the proposed transfer of competencies from ST-Ericsson, ST will further strengthen its capabilities in the areas of application processors, RF, analog and power as well as software and complex system integration. In addition, ST-Ericsson’s portfolio includes devices that are complementary to ST’s focus on the fastest growing segments of the wireless semiconductor market, such as system-optimized analog mixed signal and power management devices, high-quality, low-power audio and video enhancements and innovative energy harvesting solutions.
The agreement is fully in line with ST’s financial model target of an operating margin of 10 percent or more and with plans to reduce quarterly net operating expenses to an average quarterly rate in the range of $600 million to $650 million by the beginning of 2014.
In addition, as a result of the agreement, ST expects to incur cash costs, including the covering of ST-Ericsson’s ongoing operations during the transition period and its restructuring costs, in the range of approximately $350 million to $450 million, narrower than the range provided at the end of January 2013.
New and successful “post feature phone” business of Nokia with a new set of risks and uncertainties
Nokia successfully got over the “post feature phone” situation described a year ago as:
… many mid-range to high-end feature phones increasingly offer access to the Internet and applications and provide more smartphone-like features and design, blurring the distinction between smartphones and feature phones. We are subject to intense competition over the entire spectrum we address through our Mobile Phones business unit. Recently, smartphones of other manufacturers, particularly Android-based smartphones, are reaching lower price points, which is increasingly reducing the addressable market and lowering the price points for feature phones. …
… For higher-end feature phones in particular, the platform is a differentiating element with the addition of new functionalities and possibilities for customization and an improved user experience. If we are unable to produce competitive low-end and high-end feature phones and preserve our market share and profitability of our feature phones business, our business, results of operation and financial condition could be materially and adversely affected.
Now it has new types of affordable devices for which it needs only to add:
- Continuation with their affordability
- “… very rapid and low-cost production … increasingly at lower price points …”
- Ability “to produce competitive devices at various price points”
This significant achievement is well reflected in the changes of the title of the risk descriptions:
pp.18-19 of the Nokia SEC filing for the fiscal year ended December 31, 2011 (FY11)
pp. 15-17 of the Nokia SEC filing for the fiscal year ended December 31, 2012 (FY12)
We may not be able to produce attractive and competitive feature phones, including devices with more smartphone-like features, in a timely and cost efficient manner with differentiated hardware, software, localized services and applications.
We may not be able to produce attractive and competitive devices in our Mobile Phones business unit, including feature phones and devices with features such as full touch that can be categorized as smartphones, in a timely and cost efficient manner with differentiated hardware, software, localized services and applications.
Consequently there is a new set of risks and uncertainties associated with that new “post feature phone” space as follows (highlighted full text comparisons of FY11 vs. FY12 you can see in a PDF format downloadable from here):
The market we address with the more affordable devices from our Mobile Phones business unit may further reduce in size if the higher-end price points become dominated by more affordable smartphones, such as Android-based smartphones, and the higher-end devices from our Mobile Phones business unit are not sufficiently competitive compared to those.
The features of higher-end devices from our Mobile Phones business unit may not be sufficiently competitive compared to more affordable smartphones, such as Android-based smartphones.
Our estimates of the growth potential in the markets we address through our Mobile Phones business unit may not be accurate and as such result in misplaced investments of resources.
…
Speed of shifts in market development and demand, for example, related to 2G, 3G and 4G mobile communication technology transitions and requirements, may be faster than we have anticipated, making our Mobile Phones portfolio less competitive if we are unable to timely develop and produce devices addressing such shifts.
We are using our internally developed platforms for our devices from the Mobile Phones business unit, which may hinder our ability or increase our costs in integrating hardware and sourcing components and other parts due to limitations in the platform and vendors tooling their supply and configurations for devices that operate on other platforms.
If the platforms that we use for our devices from the Mobile Phones business unit are not sufficiently competitive or otherwise optimal for our devices, developing the platform or switching to another platform may be time-consuming and costly, and there are no guarantees that our competitive position would benefit from such actions or that the development costs would result in a positive return on our investments. If the attractiveness of the platforms we use in the Mobile Phones business unit deteriorates, corrective actions will consume time and resources from us and may not lead to desired results, and may expose our Mobile Phones business unit to a significant deterioration in competiveness.
[vs. just a too general statement for all that used a year ago:
We may need to make significant investments to further develop platforms for devices from our Mobile Phones business unit. There can be no assurances regarding consumer acceptance of such platform developments or that the development costs would result in a positive return on our investments.]
…
There are shifts in the desired features and products in the market that are appealing to customers and consumers and such shifts may not be in our favor from a net sales or profitability perspective; for instance, QWERTY devices have been a traditional strength for us, but the overall market demand for QWERTY devices has declined and is expected to continue to decline.
[vs. nothing said about that a year ago]
Nokia’s expanded, new risks and uncertainties for its Windows Phone strategy for 2013
According to the Nokia SEC filing for the fiscal year ended December 31, 2012 (FY12) vs. that of the Nokia SEC filing for the fiscal year ended December 31, 2011 (FY11):
As per the “Risks and Uncertainties” sections in both, there are the following expanded texts in the FY12 section vs. that of in the FY11 section (highlighted full text comparisons you can see in a PDF format downloadable from here):
[We may not be able to make Nokia products with Windows Phone a competitive choice for consumers unless the Windows Phone ecosystem becomes a competitive and profitable global ecosystem that achieves sufficient scale, value and attractiveness to relevant market participants.]
We believe that successful smartphone platforms require a successful ecosystem around them. … Today, industry participants are creating competing ecosystems of mutually beneficial partnerships to combine hardware, software, services and an application environment to create high-quality differentiated smartphones. Certain smartphone platforms and their related ecosystems have gained significant momentum and market share, specifically Google’s Android platform and Apple’s iOS platform, and are continuing apace, with Android-based smartphones continuing to gain significant market share during 2012 and also reaching lower price points.
… Although Microsoft will continue to license Windows Phone to other mobile manufacturers, we believe we can differentiate Nokia smartphones from those of our competitors that also use the Windows Phone platform as well as other platforms. The first Nokia smartphones powered by Windows Phone were launched in October 2011 under the Lumia name. We launched additional Windows Phone 7 devices and the first Windows Phone 8 Lumia devices during 2012. See Item 4B. “Business Overview—Devices & Services—Smart Devices” for a more information.
…
Microsoft has recently launched the Windows 8 operating system used to power personal computers and tablets, and the related Windows Phone 8 operating system is used in the latest Nokia smartphones. The success of Nokia’s Windows Phone 8 smartphones will be negatively affected if the Windows 8 platform does not achieve or retain broad or timely market acceptance or is not preferred by ecosystem participants, mobile operators and consumers.
…
Other competitive major smartphone ecosystems, primarily Google’s Android and Apple’s iOS, have advantages that may be difficult for the Windows Phone ecosystem to overcome, such as first-mover advantage, momentum, a larger share of the smartphone market, engagement by developers, mobile operators and consumers and brand preference, and their advantages may become greater over time.
…
[acknowledging that] We may not be able to develop sufficient quantities of high-quality differentiated Nokia products with Windows Phone in order to achieve the scale needed for a competitive global ecosystem in a timely manner, or at all. [vs. just “execute with speed” a year ago]
…
Our competitors may use various technical and commercial means to make the Windows Phone ecosystem unattractive compared to other ecosystems, including for instance hindering application development, not providing tools to allow applications to be developed to industry standard or not allowing certain applications to work or work efficiently on the Windows Phone platform.
[vs. just “Other competitive major smartphone ecosystems have advantages that may be difficult for us to overcome, such as first-mover advantage, momentum, engagement by developers, mobile operators and consumers and brand preference, and their advantages may become even greater before we complete our transition to the Windows Phone platform.” a year ago]…
The Windows Phone ecosystem is relatively small, and thus it may not be compelling for hardware and software suppliers and developers, which may for instance lead to our reliance on a limited number of suppliers, later availability of the latest innovations and increased cost of components and software.
Mobile devices are increasingly used with other technical appliances, for instance speakers and car audio systems or have accessories and gadgets that can be used in conjunction with the mobile device. As the Windows Phone ecosystem is relatively small, it may not be compelling for third parties to design such technical appliances, accessories or gadgets to a similar extent as with other ecosystems.
[As the recognition of the already observable effect of the “Other competitive major smartphone ecosystems, primarily Google’s Android and Apple’s iOS, have advantages that may be difficult for the Windows Phone ecosystem to overcome, such as …” vs. just a possible risk associated with “may not be able to attract developers and other participants to the Windows Phone ecosystem” a year ago]
…
The frequency of Windows Phone operating system updates may be too slow and the platform may be too closed to address changing market and customer requirements in a timely manner, which may erode customer support and consumer attractiveness of the platform.
Emergence of new alternative ecosystems and platforms could make the Windows Phone ecosystem less attractive to customers and consumers.
As well as per:
[Our success in the smartphone market depends on our ability to introduce and bring to market quantities of attractive, competitively priced Nokia products with Windows Phone that are positively differentiated from our competitors’ products, both outside and within the Windows Phone ecosystem, and receive broad market acceptance.]
[despite of all the risks and uncertainties already given there is no change in the sense that]
Our strategy is to compete in the smartphone market with Nokia products with Windows Phone.…
[but there are new warnings that]
The Microsoft Windows Phone platform … may limit our ability to … bring certain hardware capabilities at the higher price points.… we may not be able to introduce functionalities such as advanced imaging and sensor technology …
[as well as more intensive warnings by saying that there is]
… lack of proper training of sales personnel, insufficient marketing support and experience
[vs. using just the “inadequate” attribute a year ago]
… still relatively unfamiliar Windows Phone platform in an otherwise highly competitive market.
[vs. “new and” used a year ago]
[Regarding “Microsoft may not be able to provide the software innovations and features we rely on for the Windows Phone operating system in a timely manner, if at all” it is now added that]
Additionally, we are dependent on Microsoft for timely error corrections for customer and country variants as well as generic software releases.Other manufacturers also produce competing mobile products which are based on the Windows Phone operating system. We may face increased competition from other manufacturers, including Microsoft, who already produce or may produce competing Windows Phone based products. Increased competition within the Windows Phone ecosystem could result for instance in lower sales of our devices or lower potential for a profitable business model.
We are aiming to expand our Windows Phone-based products to lower price points. The availability of Windows Phone-based products that we or our competitors offer at lower price points may have a negative effect on the sales of our higher priced Windows Phone-based products.
With all that it is the case that
[Our partnership with Microsoft is subject to risks and uncertainties.]
In addition to the factors outlined above in connection with the Windows Phone ecosystem and sales of Nokia products with Windows Phone …
[i.e. as the result of the above added risks there is an enhanced warning that]
A further change in smartphone strategy either by Microsoft or Nokia could be costly and further adversely affect our market share, competitiveness and profitability.
[vs. without that “either by Microsoft or Nokia” stated a year ago, meaning that on either side there is an increased risk in that regard vs. that of a year ago]
[as well as adding now that]
Microsoft could provide better support to another device manufacturer which produces devices that run on the Windows Phone platform…
We license from Microsoft the Windows Phone operating system as our primary smartphone platform. Microsoft may act independently of us with respect to decisions and communications on that operating system which may have a negative effect on us. Moreover, if Microsoft reduces investment in that operating system or discontinues it, our smartphone strategy would be directly negatively affected by such acts.
Microsoft may make strategic decisions or changes that may be detrimental to us. For example, in addition to the Surface tablet, Microsoft may broaden its strategy to sell other mobile devices under its own brand, including smartphones. This could lead Microsoft to focus more on their own devices and less on mobile devices of other manufacturers that operate on the Windows Phone platform, including Nokia.
We may not be able to sufficiently influence Microsoft in bringing the features or functionalities for the Windows Phone platform that we deem most important, or Microsoft may otherwise focus on other areas of its business leading to reduced resources devoted to the Windows Phone platform or failures to implement features or functionalities. This may be heightened if our position in the partnership deteriorates, for instance through other companies using leverage to influence Microsoft, or if Microsoft chooses to develop its own mobile devices, including smartphones, or if Microsoft otherwise develops interests that are contrary to ours.
…