2011

BUSINESS AND TECHNOLOGY REPORT

Prepared by Ferhat nlkal 1/30/2011

 BUSINESS AND TECHNOLOGY REPORT

BUSINESS AND TECHNOLOGY REPORT

JANUARY 2011
LCD TV Samsung Growth in LCD TV Business Samsung Electronics Co, aiming for a 15 percent jump in TV sales in 2011, signaled an aggressive push into "smart" and 3D TVs this year in unveiling a procession of content and technology tie-ups with the likes of Comcast and Adobe. The world's largest television maker is targeting 15 percent growth in 2011 sales of flatscreen TVs to 45 million units, and hopes to more than double shipments of pricier LED sets. Samsung noted that the company aims to sell 45 million TVs in 2011, up 12% on year, of which smart TV sales are expected to reach 10 million units. Samsung is more optimistic about the smart TV market in the US and expects the market to reach 20 million units in 2012. South Korea-based Samsung Electronics Co. earned 3.42 trillion won ($3.1 billion) in the three months ended Dec. 31, it announced Friday, compared with net profit of 3.04 trillion won the year before. Sales rose 7 percent to 41.9 trillion won. For all of 2010, net profit surged 65 percent to a record 16.1 trillion won. Sales also increased to an all-time high of 154.6 trillion won, up 13 percent. The 3 trillion won figure is down substantially

from the 4.86 trillion won Samsung reported in the third quarter, while the 41 trillion won figure would beat its previous sales record of 40.23 trillion won, from the third quarter. Capital expenditure on a consolidated basis reached 21.6 trillion won ($19.4 billion) for the entire year of 2010, including 12.7 trillion won ($11.4 billion) for the semiconductor business and 4.6 trillion won ($4.1 billion) for the LCD business. In 2011, capex is expected to reach 23 trillion won ($20.7 billion. As was announced in early January, 10.3 trillion won ($9.2 billion) will be invested in the semiconductor business, including 5.8 trillion ($5.2 billion) in memory and 4.2 trillion ($3.77 billion) in system LSI.

Connected TV Samsung said it would release two devices: a companion box (in the vein of the Logitech Revue) and a Blu-ray player. Both will support Google TV, the service from Google. Samsung has revealed that more than 2 million apps have been downloaded from its Samsung Apps store, which is one of the first app stores made for televisions. After it launched its app store in March 2010, it took leader in Internet-enabled TVs until November to hit 1 million downloads, but it has already doubled that number to 2 million in under two months.

SmartPhone Samsung has set a goal to sell 60 million smartphones this year, twice as many as 2010, she said. Samsung sells smartphones with a range of OSes, including Windows Phone 7 and its own Bada OS. The electronics giant saw tough times in its component businesses. Overall, Samsung sold 80.7 million mobile phones in the fourth quarter, raising its 2010 total to 280 million, up 23 percent over 2009.

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Electronic paper Samsung Electronics Co said on Thursday it had acquired Dutch display firm Liquavista, which specializes in electronic paper technology, as the world's biggest LCD screen maker seeks to expand in the booming mobile display market.

company's appliances division, said on Tuesday. Cooperation in semiconductor Samsung and IBM said Wednesday that they plan to jointly collaborate on developing methods to develop 20-nm technology and beyond. The agreement calls for the two companies to jointly develop new semiconductor process technology that can be used in a broad range of applications, from smart phones to communications infrastructure, the two companies said in a statement. The report also indicates that Samsung is in the process of building a new $3.6 million fabrication plant in Austin, Texas. The plant would allegedly produce non-memory chips"an apparent scheme to ship more of its mobile processors to Apple," claims the article. Samsung officials have not commented on either the rumored plant or the alleged boost to the company's contract with Apple. Samsung has been Apple's partner in creating the application processors that power Apple devices for some time now, and the two companies worked togetherin a fashion--to develop Apple's A4 line of system-on-a-chips. Samsung and Intrinsity initially collaborated to create Hummingbird, a revamp of ARM's Cortex A8, which many consider the groundwork for Apple's A4 processor after Apple purchased Intrinsity outright in April of 2010.

Growth in emerging market (Russia) Global supply chain optimization provider Manhattan Associates (Nasdaq:MANH - News) today announced that Samsung Electronics, the global consumer electronics brand, has successfully installed Manhattan Associates' Warehouse Management solution at its new, automated, 55,000 square foot national distribution center at the Vorsino industrial park in Kaluga, Russia.

Touchpanel Samsung Electronics and Microsoft, at Consumer Electronics Show (CES) 2011 in Las Vegas, unveiled the next generation of the Microsoft Surface experience featuring PixelSense technology, which gives LCD panels the power to see without the use of cameras. Building from the innovation of the first version of Microsoft Surface and Samsung's display technology, it is now possible for people to share, collaborate and explore together using a large, thin display that recognizes fingers, hands and other objects placed on the screen. This experience will come to life in the Samsung SUR40 for Microsoft Surface for business customers later in 2011 in 23 countries.

New Business Areas Samsung Electronics Co Ltd <005930.KS>, the world's No.1 maker of memory chips and flat screens, will invest $23 billion on environmentallyfriendly businesses by 2020, the company's television division chief Yoon Boo-keun said in a statement on Friday, Jan 7. "Samsung is creating a greener future by actively seeking out greener energy sources such as solar power to replace gas and petroleum," the 3

Growth in home appliances South Korea's Samsung Electronics Co Ltd targets sales of nearly $30 billion from home appliances in 2015 and a 10 percent share of the global market, Hong Chang-wan, head of the

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statement quoted Yoon as saying in a key note speech at the Consumer Electronics Show in Las Vegas. South Korea, Asia's fourth-largest economy and heavily dependent on oil and gas imports, set a voluntary 2020 emissions target in 2009 of a 30 percent reduction from its forecast under a business-as-usual scenario. The government said it would invest 107 trillion won ($95.27 billion), or 2 percent of annual GDP, in environmentrelated industries through 2013. Samsung Electronics also said in 2009 that it would invest 5.4 trillion won in green research and development, and facilities to make itself a leading ecofriendly company by 2013.- Reuters LG LCD Business LG Electronics reported its first quarterly loss in nearly two years as prices for flat screen televisions fell and devices like the iPhone provided stiff competition for its mobile phone business. The company, a major global manufacturer of flat screen televisions and mobile phones, lost 256.4 billion won ($229.4 million) in the three months ended Dec. 31, it said Wednesday. That compared with net profit of 361.9 billion won a year earlier.

Plus HD Certified DTVs will join the DivX ecosystem, which now includes more than 400 million DivX devices shipped into the market worldwide. The South Korean firm on Wednesday repeated its previous global flat-screen TV sales guidance for 2011 at 40 million, including 35 million LCD TVs. At the Consumer Electronics Show (CES), in Las Vegas, Skype revealed it has teamed with Panasonic and LG televisions. High-definition Skype video calling will also be available as a standard feature on some of Sony and Panasonic's Blu Ray players. In addition to existing USB and DLNA functions, LG is adding a new Media Link function to its LCD TVs, which will allow users to access content on PCs, as well as transfer and display the content on the TV. LG expects to ship 40 million TVs in 2011.

Smartphones LG sold around 7 million smartphones last year and aimed to increase the volume to 30 million units this year.

Growth in home appliances Cross-town rival LG Electronics Inc said on Tuesday that its home appliance business aimed to achieve $20 billion in sales in 2014 to position the company as the top global player, and targeted double-digit sales growth in 2011.

Connected TV Today at the Consumer Electronics Show (CES) LG revealed plans to dive deep into the realm of connected TVs, unveiling its Smart TV line and launching an app store for those TVs. DivX, a division of Sonic Solutions, announced Thursday that LG Electronics, Inc. will adopt DivX Plus HD Certification worldwide in digital TVs (DTVs). LG will integrate DivX technology in its new line of 2011 DTVs, offering high-quality playback of DivX Plus HD video up to 1080p using the MKV container. The new LG DivX

Growth in emerging market (India) Korean consumer durables major LG today said it will invest Rs 800 crore in 2011 to add capacity and for other purposes in India, which it expects will become its largest air-conditioner market in the world by next year ahead of the current leader US. The company is also aiming to more than double its annual revenue to cross a figure of Rs 40,000 crore in India from all verticals in the next four years. The global AC sales of the company stood at around $3 billion in last year and the

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contribution from the US was 30-40 per cent, he added. The company estimates the current Indian AC market to be around 3.4 million units annually, valued at Rs 7,200 crore, which is growing at 26 per cent. Sony Tablet PC Sony Corp aims to slide in behind Apple Inc as the world's second-largest maker of tablet devices by 2012, a senior executive said on Thursday, adding that a PlayStation phone was also a potential opportunity.

Change Management Sony said it aimed to employ 30 per cent of its graduates from overseas by fiscal 2013, more than double the 14 per cent slotted to be taken on in the financial year from April

Optimization Sony Corp. says it will shut down a CD manufacturing plant in New Jersey by the end of March and its 310 workers will be laid off. After the closure, Sony's Terre Haute, Ind., plant will become the company's only U.S. CD manufacturing plant.

3D Sony has also announced two new dual-lens 3D-capable camcorders that will be in stores this April.

Portable Device Sony Corp. plans to unveil an updated PlayStation Portable handheld game device on Jan. 27, followed by a gameplaying smartphone in February, according to two people with knowledge of the plans. Japanese entertainment giant Sony on Thursday unveiled a new portable touchscreen gaming console as it looks to launch a fresh challenge to Nintendo and Apple in the competitive mobile gaming market. Sony sold nearly 65 million PSPs as of the end of September 2010, but the device has been overshadowed by the popularity of Nintendo's DS, which has sold at least double that since its release the same year. Sony's move comes as smartphones and tablet computers such as Apple's iPhone and iPad take a growing share of the market for portable gaming devices on to which high quality games can be easily downloaded and played in minutes.

Connected TV Sony Corp. said at the Consumer Electronics Show on Wednesday that it has inked an exclusive deal with Time Warner Cable to build the cable company's programming into its Bravia television sets and Blu-ray players later this year. The deal lets Time Warner subscribers access the cable company's on-demand content without an advanced digital video recorder or settop box, said Phil Molyneux, president of Sony's U.S. consumer electronics business. The announcement is part of Sony's strategy to pack as many entertainment options as possible into its TV sets and other devices capable of connecting to the Internet. Nearly 180 million people watch Internet television each month and more than 65 million Internet-enabled sets will ship this year, according to industry forecasts and statistics cited by Sony.

Sharp Connected TV DivX, a division of Sonic Solutions (Nasdaq:SNIC - News), and Sharp Electronics Corporation today announced that Sharp will add DivX Plus HD Certification to its new LE835 5

 BUSINESS AND TECHNOLOGY REPORT

and LE830 lines of AQUOS Quattron LCD TVs as well as its new line of AQUOS Blu-ray Disc players, providing flawless playback of DivX MKV files in 1080p. Consumers who purchase the new Sharp devices will enjoy high-quality playback of DivX Plus HD videos and Hollywood movies in the DivX format directly on the products using any optical disc or through the SD card slot. Renewable Energy Sharp Corporation (hereinafter "Sharp") and Enel Green Power(1) (hereinafter "EGP") announce that their joint venture company Enel Green Power & Sharp Solar Energy S.r.l. (hereinafter "ESSE") which the two companies established in July 2010 for IPP business(2), has completed the construction of its first solar power generation plant, located in Serragiumenta, Altomonte, Regione Calabria, Southern Italy. The power generation capacity of the solar power generation plant is 5MW, using Sharp's single crystalline solar cell modules. The annual power generation is estimated to be 7.5 million kWh, equivalent to the annual power consumption of approximately 2,800 average Italian households Japanese electronics company Sharp will almost double the size of its solar panel manufacturing in northern England, creating 300 jobs, the company said on Thursday. The expansion would almost double capacity to 500 megawatts (MW) annually by March 2011, or 8,000 solar panels a day, Sharp said. "The UK is one of the world's fastest growing markets for solar panel technology," it said in a statement. Britain introduced new solar incentives last year just as several European countries including Spain, Germany and France cut these to take account of price falls following global over-capacity and competition from China.

DivX, a division of Sonic Solutions (Nasdaq:SNIC - News), and Sharp Electronics Corporation today announced that Sharp will add DivX Plus HD Certification to its new LE835 and LE830 lines of AQUOS Quattron LCD TVs as well as its new line of AQUOS Blu-ray Disc players, providing flawless playback of DivX MKV files in 1080p. Consumers who purchase the new Sharp devices will enjoy high-quality playback of DivX Plus HD videos and Hollywood movies in the DivX format directly on the products using any optical disc or through the SD card slot.

Patent Issues Japanese electronics maker Sharp Corp. says it has sued Taiwanese flat panel maker AU Optronics Corp. over alleged patent violation for liquid crystal displays. Sharp said Tuesday it filed a complaint with the U.S. International Trade Commission, seeking a ban on U.S. sales of products using liquid crystal displays panels and liquid crystal display modules made by the Taiwanese maker. Such products are used in LCD televisions and screens used for computers.

Toshiba 3DTV Japan's Toshiba Corp saw better-thanexpected television sales in November and December thanks to a spike in Japanese sales, the head of the company's TV unit told Reuters in an interview on Thursday. But Masaaki Osumi said sales of 3D models designed for use with special glasses had disappointed, accounting for only about 15-20 percent of large TVs sold, compared with an initial target of 50 percent. "We had wanted 3D sales to make up about half of large-screen TV sales, but it's proving difficult," he said at the Consumer Electronics Show. "The price premium for 3D TVs may

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still be too high. It's the same in Japan, Europe and America. Sales of 3D TVs with glasses have not lived up to expectations," he said. DTT Toshiba has also hiked its annual TV sales target by a third to 20 million units for the financial year starting in April, despite an expected slump in the Japanese market following the end of a government subsidy program in March and the introduction of digital terrestrial TV in July. Osumi said he expected the TV unit to stay in profit for the current financial year, but that the following year would be more difficult because of expected weakness in Japan, the company's most profitable market for TVs.

designed to boost consumer spending, Masaaki Oosumi, president of Toshibas Visual Products Company, said in November. The company and El Araby, a partner since the 1980s, agreed last month to build a TV factory in Egypt. The market for LCD televisions in the Middle East and Africa may grow 34 percent a year through 2012 to 5.2 million sets, Ohmori said. Two-thirds of the TVs currently sold in the region are still the traditional, bulkier sets, he said. He declined to give Toshibas revenue target for the market. Tablet PC Toshiba Corp. is hoping to lure consumers to its new tablet computer by including a screen that is slightly larger than the iPad and offering a version of Google Inc.'s Android mobile operating software geared toward such devices. Motorola and Toshiba both said they will sell tablets this year that run Android, Google's mobile operating system. Both companies are waiting for the next version of Android, Honeycomb, to install on the devices.

Connected Device Toshiba Electronics Europe and open source development and integration specialist kernel concepts have announced a range of free resources that will simplify the design of LINUXbased embedded systems built around ARM9 microcontrollers.

Emerging Market Middle East & Africa Toshiba Corp aims to double its share of the growing market for liquid crystal display televisions in the Middle East and Africa in the next three years after extending a joint venture in Egypt. The Japanese electronics maker is targeting a 20 percent market share by the fiscal year ending March 2014, compared with 9 percent now, spokesman Keisuke Ohmori said in a telephone interview. Toshiba signed an agreement on Friday with El Araby Group to sell TVs in the region through a venture between the two companies, the Tokyo-based company said in a statement. Toshiba is counting on sales of flat-panel TVs in emerging markets to help offset an anticipated plunge in domestic demand after the expiration of Japanese government subsidies

Nuclear Energy Toshiba Corp., a Japanese powerequipment maker, rose the most in more than a month in Tokyo trading after a report one of its units will develop a nuclear reactor with Chinas state atomic energy company. Westinghouse Electric Co. and Chinas State Nuclear Power Technology Corp. will develop a 1,400-megawatt reactor, which may be available around 2017, the Nikkei newspaper said, without citing anyone. The companies may spend more than 50 billion yen ($609 million) to develop the pressurized water reactor CAP 1400, according to the report. Toshiba Corp. and Westinghouse Electric Co. signed agreements with Rolls-Royce Group Plc and other companies to cooperate on a bid to win

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a nuclear power plant contract in the U.K. IHI Corporation (TOKYO: 7013) and Toshiba Corporation (TOKYO: 6502) today announced that, further to a definitive agreement signed in July 2010, they have established a joint venture to manufacture steam turbine parts for nuclear power plants for the domestic and overseas markets. The JV will allow IHI (Xetra: 854347 - news) to extend its operations to major components of turbines, alongside the manufacture of nuclear reactor pressure vessels and containment vessels, while Toshiba will enhance its turbine manufacturing capacity and strengthen its nuclear power plant business supply chain.

Energy Toshiba Corp said on Jan. 12 that it won a major contract to supply steam turbines and generators to an Indian power company. Shipments to the coal-fired power plant will start in 2012, and the first unit is expected to start commercial operations in 2013, Toshiba said.

Transportation Toshiba Corp. said Thursday its U.S. subsidiary has won orders worth up to around 30 billion to supply key equipment and systems for trains that will be delivered to transit authorities in Washington and Chicago. Toshiba is seeking to boost the overseas sales share of its transportation system business from 40 percent in fiscal 2009 to 70 percent by fiscal 2015. By taking this business to the global level, the company said it aims to achieve annual worldwide sales of more than 200 billion in the next five years.

Renewable Energy Toshiba and Tokyo Electric Power will team up with the Japanese government to build one of the world's largest solar power stations in Bulgaria, according to a report. The plant will be built in the eastern city of Yambol by March 2012 at a cost of more than 100 billion yen ($1.2 billion), Japan's Nikkei daily said. The EU has an aggressive goal to unilaterally cut carbon emissions by 20 percent by 2020, as compared to a benchmark year of 1990. Japan's Toshiba Corporation has offered Bulgaria a large-scale project in the field of renewable energy, "smart electricity grids" and electric cars. As part of a visit of a large Bulgarian government and business delegation in Japan led by PM Borisov, Bulgarian Minister of Economy, Energy, and Tourism Traicho Traikov met with Norio Sasaki, President and CEO of Toshiba Corporation. The Toshiba management has confirmed that the company will construct a 10 MW photovoltaic park near Bulgaria's Yambol, an investment worth EUR 37.6 M that will provide electricity to 2000 households.

Electric Vechicle Mitsubishi Motors Corp <7211.T> will use Toshiba Corp's <6502.T> lithiumion batteries in a small electric vehicle for business use which is set to go on sale in the autumn, the Nikkei business daily said on Friday.

Panasonic Connected TV & IPTV Japanese giants Panasonic and Toshiba flew the flag for IPTV on the opening day of the Consumer Electronics Show yesterday, despite the event being billed as a tablet PC-fest. Panasonic unveiled a partnership with Japanheadquartered software provider Access to develop a common IPTV platform based on its Ajax-CE middleware and VIERA Cast and Connect Internet TV services. Access plans to market the platform to TV and

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set-top box manufacturers, and content providers, as it seeks to tap a growing market that president Tomihisa Kamada estimates could see 118 million connected TVs shipped in 2014. The key to penetrating this rapidly growing Internet TV services market in the future is through the expansion of services and reduction in time-tomarket, Kamada states. Kamadas growth predictions were borne out by Toshibas strong focus on connected TVs. Four of the eight new TV lines unveiled by the firm at the event are compatible with Web TV services with three of the four equipped with Wi-Fi, and all four offering access to Yahoo widgets. The firms Digital Products Division a unit within its US business will launch the first three lines during 1Q, with the last unit scheduled to hit stores in April. Panasonic expects Internet-enabled TVs to make up 70 percent of its global television sales in the financial year starting April 2012.

for LED lamps in Japan in the fiscal year ending March 2011, when industrywide sales may increase to 18 million units from 11 million in the current fiscal year, Ito said. Panasonic may also need to make 3 million to 4 million units for overseas sales next fiscal year, he said. Production in Serbia Panasonic has announced that the production in Serbia should start on January 10, 2011. The Japanese company established a new company in Svilajnac, central Serbia, in November to manufacture energy-efficient electronic devices for lighting equipment.

Vizio Connected TV Consumer electronics company Vizio has announced that it will be expanding its Vizio Internet Apps (VIA) platform to include support for Hulu Plus and Blockbuster On Demand. Vizio has settled its patent infringement lawsuit with LG Electronics (LGE) and the two companies have signed crosslicensing agreements for the production of LCD TVs, according to Amtran Technology, the parent company of Vizio. The settlement comes as the US International Trade Commission (ITC) is ready to hammer out a verdict soon to end the more than two years lawsuit.Amtran and Vizio showcased recently 47- and 55-inch Google TVs at CES and volume production of the smart TVs is slated for the second half of the year, according to industry sources.

Digital Signage & 3D Omek Interactive, a worldwide leader in gesture recognition and full-body tracking, and Panasonic Electric Works, a global leader in motion sensors and electronic components, have announced a collaboration to enable gaming, digital signage and entertainment providers to create fully immersive 3D experiences for consumers.

LED Lighting Japans largest maker of home appliances, Panasonic, expects sales at its lighting unit will jump 43 percent to 100 billion yen ($1.2 billion) by March 2013, Ito said. The Osaka-based company faces competition in the lightemitting diode market from manufacturers including Toshiba Corp. and Royal Philips Electronics NV, the worlds biggest lighting company. The company aims to win half of the market

Amtran Growth in LCD TV Business Flat-panel TV shipments for the fourth quarter of 2010 reached 1.69 million units, and total shipments for 2010

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reached 5.7 million units. Revenues for the fourth quarter reached NT$22 billion, an increase of over 40% compared to the third quarter of 2010 and 24.7% on year.

into independent business units under Foxconn, it can help Foxconn provide more complete front-to-back production service and allows Foxconn clients to not worry about supply shortages or inventory problem, market observers added. BLU Foxconn Electronics reportedly plans to take up a 15% stake in backlight unit (BLU) maker Coretronic at a unit price of NT$55 (US$1.89) per share. Market rumors also indicated that Foxconn plans to acquire the BLU unit of Chi Lin Technology. The companies have all denied the reports.

Foxconn Tablet PC Foxconn Electronics (Hon Hai Precision Industry) has landed OEM orders of smartphones and tablets for US-based LCD TV vendor Vizio.

E-Book Foxconn Electronics (Hon Hai Precision Industry) plans to cooperate with upstream partners to push Mirasol panels in the color e-book reader market, according to market watchers. Currently, E Ink Holding, previously known as Prime View International (PVI), and Delta Electronics are the two most aggressive companies pushing the standardization of color e-paper, but due to limitations in technology, actual products are still unable to appear in the retail channel. However, since Foxconn is aggressively working with its upstream partners on the development of Mirasol panels and as soon as the panel is able to meet supply, related e-book reader products should start appearing in the channel, the market watchers added. Vestel

Connected TV Miniweb, the leading provider of cloudbased connected TV services, and Vestel, a leader in the global consumer electronics industry, announced today at CES 2011, a partnership to bring a variety of new content sources to TV audiences across Europe. The offering is based on woomi, Miniwebs global connected TV services platform, and Vestels range of connected TV devices. Vestel is the largest TV manufacturer in Europe accounting for 16% of the LCD TV, as well as 25% of the digital settop boxes markets in Europe.

Small & Mid Size LCD Business Terry Gou, chairman of Foxconn Electronics (Hon Hai Precision Industry) reportedly will separate the small- to medium-size business from Chimei Innolux (CMI) and break it up into ten different business units under Foxconn. The market rumors noted that recent cooperation between Foxconn and Hitachi Display has been to prepare for the setting up of small- to medium-size business units. Through separating the small- to medium-size panel business

Market LCD TV Growth Global TV shipments in 2010 will reach more than 247 million units, an increase of 17% from 2009 and the best growth seen since the start of the flat-panel TV transition, according to DisplaySearch.LCD TV shipments will rise from 190 million in 2010 to 215 million in 2011, although an increase in

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the rate of ASP erosion will lead to the first ever revenue decline in the LCD TV category. Japan has been a spotlight market for LCD TV growth in 2010, with LCD TV shipments forecast at 22.6 million units, an increase of 80% from 2009 due to the eco-points stimulus program. That program will end in 2011, so shipments are expected to fall sharply. European shipments have been fairly robust in 2010, but growth will fall from double- to single-digit rates over the next few years. Also a first in 2011, emerging regions will overtake the developed regions (Japan, North America, and Western Europe) in total LCD TV unit volume as the growth focus shifts to countries with lower flat panel TV penetration. LED backlights have been a key trend for LCD TVs in 2010, and their penetration into LCD TV shipments will rise to 20% globally due to more attractive pricing, especially in the second half of the year. In 2011, LED-backlit models are expected to account for the majority of LCD TV shipments worldwide as manufacturers continue to transition away from fluorescent backlights. This is possible due to the rapidly decreases in the premium for LED models from highs of 100% during the first half of 2010, to less than 50% in 2011; for some sizes and frame rates it will fall to nearly 20%. Plasma TV demand continues to be very robust in 2010, helped by the fact that consumers are still looking for strong value and plasma TV has maintained its rate of price decline. Plasma TV shipments are now expected to exceed 18 million units in 2010, a 28% increase from 2009, when shipments actually declined on year. Connected TV

DisplaySearch estimates that 21 percent of all TVs shipped in 2010 have Internet connectivity, and the segment is expected to grow at double-digit

rates over the next four years, swelling to 122 million units by 2014 Flat-panel TV sales in China in 2011 are expected to reach 41.1 million units, of which 16 million units will be LEDbacklit models, along with 15 million iTVs and 1.9 million 3D TVs, AVC added. Market sources noted that in the 210million-unit global LCD TV market in 2010, about 21% had Internet connections, and the share is expected to reach over 50% by 2014. Due to the surging demand, TV vendors are not only competing to see whose products have Internet connections, but also to see whose products are smarter through built-in processors and software with advanced user interfaces, fast content search and connections with other mobile devices. Moreover, vendors are also likely to develop towards LCD TVs with DLNA interfaces, which will allow TVs to display video from PCs or smartphones. Parks Associates expects connectable models to make up 76 percent of global TV sales by 2015, although some analysts express concern about whether the broadband infrastructure can cope with such a massive increase in actual usage. There are 30 million U.S. broadband households able to view some form of online video on the TV, according to InStat Research. In addition to downloading digital video, close to 90 percent of these households can also stream online video to the TV. Over the next five years, In-Stat forecasts that the majority of consumer electronics devices purchased, including digital TVs, Blu-ray players and gaming consoles, will be web-enabled. This includes 137 million devices expected to ship in the U.S. by 2014. Of these web-enabled devices, 55 percent will have Wi-Fi capabilities. Sales of smart TVs are expected to top 36 million units in 2011, up from 10-15 million units sold in 2010, the sources estimated.

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Outsourcing The share of LCD TVs outsourced reached a record high of 34% in the third quarter of 2010, as Sony and LG Electronics increased their outsourcing ratio to more than 50% and 20%, respectively. Among OEM shipments in the third quarter of 2010, excluding TV manufacturers, TPV ranked number one with a 23% share, followed by Foxconn/CMI at 15% and Vestel at 13%. Taiwanese OEMs (Compal Electronics, Wistron, and Amtran Technology/Rakern) each have shares of about 8-9%. In 2011, the top three panel makers, Samsung, LG Display, and CMI, will be aggressive with their plan to ship more than 60 million units of LCD TV panels. In total, LCD TV panel makers plan to ship more than 270 million units in 2011. Sales targets for the top seven Chinese TV brands for 2011 total 60 million units. Although Chinese brands report little excitement in the China TV market, their aggregate shipment plans show 33% on year unit growth on average in 2011.

Stock Clearance The top-6 LCD TV brands, including global brands, such as Samsung and regional players like Konka in China, have reduced their combined monthly production plan from 18.3 million in November 2010 to 15.4 million units in March 2011. Overall, first-quarter production is forecast to be 46.3 million units, a 12% sequential decline from fourth-quarter 2010.. The major LCD TV brands have adjusted their Q1 2011 production plans downward, according to DisplaySearch. The top 16 LCD TV brands, including global brands, such as Samsung and regional players like Konka in China, have reduced their combined monthly production plan from 18.3 million in November 2010 to 15.4 million units in March 2011. Overall, Q1 2011 production is forecast

to be 46.3 million units, a 12 percent Q/Q decline from Q4 2010. Despite the cautious posture of the TV brands, LCD TV sub-contract manufacturing (OEM/ODM) companies are increasing their monthly shipments from December 2010 to March 2011. This indicates that TV brands are increasing outsourcing manufacturing to OEM/ODM companies, which is driven by cost management, logistics, manufacturing scale, and in some cases, access to panel supply. The supply of key TFT LCD panel components (such as glass substrates, color filters, polarizers, LED and light guide plates) is generally in balance in Q1 2011. In January, large-area TFT LCD panel shipments will fall 2 percent from December 2010, due to adjustments in capacity utilization rates, and decline a further 7 percent M/M in February due to fewer working days in China (but panel makers expect a big jump in March, with shipments passing 60 million units. Panel inventories at the top five TFT LCD makers (Samsung, LG Display, AUO, Chimei Innolux, and CPT) fell to safe levels at the end of 2010. TFT LCD makers shall reduce their utilization rates in January and February, but expect to be over 90 percent on a global scale by March. The top ten LCD monitor OEMs plan to increase their production in January by 4.3 percent M/M, to more than 14 million units but plan to reduce February and March production to just over 12 million units. LCD TV panel shipments to China were 5.1 million units in November, and fell to 5.0 million units in December. DisplaySearch projects that shipments shall continue to fall to 4.6 million in January and 3.2 million units in February.

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Connected TV Tablet PC . Global tablet PC shipments in 2010 are expected to reach 18 million units and grow to 50-60 million units in 2011, and LG Display, who is the leading suppliers of tablet PCs, is more optimistic regarding the market and expects the market to reach 80 million units worldwide. The global tablet PC market is expected to reach 50-60 million units in 2011 and up to 100 million units in 2012. Research firm ISuppli Corp. estimates 57 million tablets will be sold this year, up from 16 million last year, and 171 million in 2014. Apples global market share in tablets was 95 percent in the third quarter, according to researcher Strategy Analytics.

SmartPhone The global smartphone market is set to grow more than 40 percent this year to over 400 million units, while the tablet market is likely to more than double to 55 million units, according to industry data.

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LCD Panel LG Display Panel Business LG Display said Friday it would spend 1.35 trillion won (US$1.21 billion) over the next five years to expand production in South Korea. The company, one the world's largest makers of liquid crystal display (LCD) panels, signed a memorandum of understanding with the southeastern city of Gumi to extend administrative support for the investment. Demand for LCD panels used for smartphones and tablet PCs has been growing steadily, the company said. "This expansion will help corroborate our leadership in the LCD industry," chief operating officer Kim Jong-Shik told journalists. LG Display Co., the worlds secondlargest flat-screen panel maker, resumed supply of liquid- crystal displays to Sony Corp. after more than six years, which will enable the Japanese company to ramp up output of TVs.

TV, next generation FPR makes 3D practical for mainstream use," remarked LG Display CEO Kwon Young Soo. "FPR will effectively allow manufacturers to create an incredible quality 3D TV experience that is healthy, convenient and affordable all factors hindering the popularity of first generation 3D products. FPR technology, which eliminates all the problems associated with SG 3D, is expected to change consumer perception of 3D TVs from an 'expensive novelty' to a 'practical choice' for everyday viewing enjoyment. Already, global LCD TV companies including LG Electronics, Vizio, Philips and Toshiba as well as Chinese manufacturers including Skyworth, Konka, Hisense, Haier, Changhong and TCL have expressed strong interest in FPR 3D and developing TVs utilizing the technology.

Stock Clearance LG Display Co <034220.KS>, the world's No.2 LCD maker, expects panel demand from television makers to shrink sharply in the first quarter, an executive said on Friday. LG Display, the world's No.2 LCD flat screen maker, posted its first quarterly loss in seven quarters, hit by a $289 million price fixing fine and as panel prices plunged on weak demand from television makers. LG Display, which competes with bigger rival Samsung Electronics Co, said on Friday its October-December operating loss was 386.9 billion won ($344.2 million), worse than a consensus forecast of a 275 billion won loss polled by Thomson Reuters I/B/E/S. According to StarMine's SmartEstimate, which places more weight on recent forecasts by top-rated analysts, LG Display was expected to report 405 billion won of operating loss. South Korea's LG Display <034220.KS>, the world's No.2 LCD flat screen maker, said on Friday it would invest 2.4 trillion won to boost

3D FPR Technology LG Display expects 3D TVs to capture over 10% of the global LCD TV market in 2011, which will be a total of 220 million sets including both 3D and 2D TVs. With FPR 3D panels, LG aims to obtain more than 70% share of the 3D TV LCD market in 2011, which would be between 15 million and 20 million units. LG Display, a leading innovator of TFTLCD technology, showcased its film patterned retarder (FPR, polarized glasses type) 3D panel at a kickoff press conference in Las Vegas, during media day of the 2011 Consumer Electronics Show (CES)."Whereas first generation shutter glass technology introduced us to the possibility of 3D

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production capacity of LCD flat screens. The investment will be made this year and is part of a roughly 5 trillion won capital budget it plans for the full 2011 year, it said in a statement. AUO Panel Business AU Optronics (AUO) today posted consolidated revenue of NT$102,605 million (US$3,521 million), down 17.5% from the previous quarter. Gross profit was negative NT$4,537 million, with a gross margin of negative 4.4%. Operating loss was NT$11,080 million, with a operating loss margin of 10.8%. AUO's net loss for the fourth quarter was NT$11,339 million. Net loss attributable to equity holders of the parent company was NT$11,465 million, with basic EPS of negative NT$1.3 per common share (negative US$0.45 per ADR). For the year of 2010, AUO reported consolidated revenues of NT$467,158 million, with net income of NT$7,408 million or basic EPS of NT$0.76 per common share (US$0.26 per ADR). In 2010, shipments for AUO's large-size panels exceeded 113.5 million units, up 26.7% yearover-year. Meanwhile, shipments of small- and medium-size panels reached around 220.9 million units, down 3.4% year-over-year. LCD panel maker AU Optronics (AUO) has reported consolidated revenues of NT$30.62 billion (US$994 million) for December 2010, decreasing 16.95% sequentially and 16.88% on year. However, consolidated revenues for 2010 increased 30.01% to NT$467.173 billion AU Optronics (AUO) will see its capex reach NT$90-95 billion (US$3.1-3.27 billion) in 2011, up from NT$84.62 billion in 2010. 20% of capex in 2011 will be for investment in solar energy business and 80% for TFT-LCD. Of the capex for TFT-LCD business, 40% will be used to enhance overall product value, while the rest will be use for

capacity expansion. AUO expects to increase capacity by 12-13%. AUO's revenues from its solar energy business in 2010 totaled around NT$10 billion, and the company expects to reach NT$20 billion in 2011. AUO expects to improve the decrease of asset turnover in TFT-LCD business through adjusting its capex. AUO started to focus on value, while adjusting its development, capacity and new technology, hoping to increase income in 2010, and expects to see the benefits in 2011. Labor Shortage Taiwan-based TFT-LCD panel makers, including AU Optronics (AUO) and Chimei Innolux (CMI), are reportedly increasing their utilization rates in anticipation of possible labor shortages in January-February and demand growth in March. Many panel makers expect short supply in the second quarter of 2011. Panel makers have indicated that LCD TV and notebook panel inventory levels increased in the fourth quarter of 2010, as holiday shopping ended and Europe was hit by snowstorms.

CMI Panel Business Chimei Innolux (CMI) shipped 510.6 million LCD panels of all sizes to generate consolidated revenues of NT$480 billion (US$15 billion) in 2010, surpassing shipments of 334.4 million panels and consolidated revenues of NT$467.17 billion for AU Optronics (AUO) to become the largest Taiwanbased maker, but is likely to suffer the largest operating loss among Taiwan's four panel makers, according to industry sources. The operating loss was because CMI has set aside EUR300 million (US$388 million) to cover antitrust fines imposed by the European Commission, the sources pointed out.

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Chimei Innolux (CMI) is setting up phase 2 capacity at its LCD production base in Foshan City, southern China, with an initial monthly capacity of 300,000 LCD TV modules to come into operation in March 2011, according to a report by the Southern Metropolis Daily.

Touchscreen Display In addition to its touch panel module plant in Nanjing, China, HannStar Display has recently started to set up production lines for glass thinning process and color lenses, and is scheduled to start mass production in the second half of 2011.HannStar expects touch panel revenues to account for about 20% of its total revenues in 2011.

Touchpanel Chimei Innolux (CMI) spokesman Eddie Chen has declined to comment on recent rumors claiming that the maker plans to spin off its touch panel and small- to medium-size LCD panel business units, according to a Chineselanguage report on Commercial Times.

BOE Production in China Taiwan-based IC design house Sitronix Technology will reportedly cooperate with China-based BOE Technology to set up production plant for medium-to large-size TFT-LCD panels, according to a Chinese-language Apple Daily report. The report noted that Sitronix will account for an about 80% stake in the medium-t o large-size plant which is expected to start mass production in the first half of 2011.

Capacity increasing Taiwan Nitto Optical will invest NT$213 million (US$7.2 million) to set up polarizer production capacity inside Chimei Innolux's (CMI) 8.5G TFT-LCD panel fab at the Kaohsiung Science Park specifically to meet the needs of the plant, according to industry sources. Taiwan Nitto Optical is a subsidiary of Japan-based polarizer maker Nitto Denko. CMI is constructing the 8.5G plant in two phases, with the goal of phase-one development set at a monthly capacity of 27,000 glass substrates at the end of 2010 and 55,000-56,000 substrates in thirdquarter 2011. CMI has also completed factory buildings and basic facilities for the second phase, with equipment installation to hinge on funds available and market conditions, the sources indicated.

LCD Panel Market Stock Clearance January large-size TFT LCD panel shipments will fall 2% from December 2010, due to adjustments in capacity utilization rates, and decline a further 7% on month in February due to fewer working days in China. However, panel makers expect a big jump in March, with shipments passing 60 million units, according to the research firm. Taiwan-based TFT-LCD panel makers are likely to see operating losses in fourth-quarter 2010 and first-quarter 2011, with lower losses in the latter. Makers are expected to turn profitable in the second quarter as TV panel prices are expected to start picking up in March or April, according to industry sources.

Hannstar Smart Phone & Tablet PC Eyeing the demand from smartphones and tablet PCs, HannStar Display will resume production of IPS panels at its 5.3G plant, and is scheduled to start mass production at the end of the first quarter of 2011.

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Demand As the transition to flat panel TV nears completion, TFT-LCD TV panel demand is slowing, from 41% on year in 2010 to 8.3% in 2011. Total TFT-LCD panel area demand is expected to increase 10.4% in 2011, resulting in 11% TFTLCD glass area demand growth, according to DisplaySearch. Panel makers plan for large-size panel shipments to trend down in January, with a 2% decline sequentially, and TV panel shipments will drop the most, falling 9% sequentially. Notebook and tablet PC panels shipments, however, will increase by more than 5% sequentially because of the pull-in of demand from February. That is being done to prepare for new models launched in the first quarter of 2011, as well as the fast-growing 9.7-inch tablet PC panel shipments. The top-16 LCD TV brands' monthly production was 18.4 million in October, 18.3 million in November, 15.9 million in December, 17.1 million in January 2011, 13.8 million in February, and 15.4 million in March. In December 2010, 60% of Samsung's LCD TV panel shipments were to Samsung and Sony, and 45% of LG Display shipments were to LG Electronics and Vizio. Samsung TV is the largest client of Chimei Innolux (CMI). LCD TV panel shipments to China are forecast to fall from 15 million units in the fourth quarter of 2010 to 13 million units in the first quarter of 2011. CMI is expected to lose market share from the fourth quarter of 2010 to the first quarter of 2011, while LG Display and Sharp will gain share. The top-five notebook OEMs will decrease production in January by 2% sequentially to 13.7 million. In February, they plan to reduce production to 11.2 million before the production rebounds to 15 million in March 2011.

Cell Business Models In an effort to meet growing customer demand, LCD panel manufacturers are planning to grow their cell businesses 30% in 2011 to support the increasing needs of their TV manufacturer customers, according to the DisplaySearch. In the cell business model, TFT-LCD panel makers provide only the liquid crystal cell which includes the TFT and color filter (CF) glass substrates, as well as liquid crystal with timing controller and driver ICs, but not the backlight module or additional optical films to the set manufacturer, who completes the module as they build the TV set. This business model allows for more flexibility in panel production, and also enables set makers to customize their designs and add more value. The DisplaySearch 2011 forecast for the cell business indicates that CMI will lead the cell market, achieving 50% or more of cell shipments, with their major customers being Chinese TV brands. Samsung plans to target around 40% of its cells shipments for its internal TV division. Other panel makers also plan to increase cell shipments 10-20% in 2011. In addition, some OEMs and TV brands plan to leverage backlight module system (BMS) assembly in an effort to reduce the overall cost of production.

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Technology Suppliers ARM Tablet PC & Smartphones Microsoft's plan to make Windows compatible with ARM Holdings chip designs will help the software giant establish a major presence in smartphones and tablets, ARM's president said. Skype

Connected TV platform to new devices, beyond the embedded experience offered by leading TV brands Samsung, Sony, LG, VIZIO and Toshiba. The DLink device will cost less than $200 and will be available in Q2, 2011.

Connected TV Skype has acquired Qik, the mobile-tomobile video streaming service, as part of an effort to expand its voice and video calling service beyond PCs and to more devices.

Yahoo Connected TV Yahoo is working with cable and broadcast programmers and advertisers including ABC, CBS, HSN, Showtime Networks and Ford to provide enhanced interactive TV features through broadband-connected television sets and other devices -cutting pay-TV providers out of the equation. The Yahoo initiative, dubbed "broadcast interactivity," is based on the Yahoo Connected TV platform, which brings Internet-enhanced content on select TV products. Yahoo is working with consumer-electronics partners including Broadcom, D-Link, Haier, MediaTek, Sony and Toshiba to enable the broadcast interactivity pilot on their devices in 2011. Yahoo plans to launch a pilot program in the first half of 2011, and is showcasing examples of the broadcast interactivity feature at CES. The Internet company said three major advertisers -- Ford, Mattel and Microsoft -- also are planning to work with Yahoo to deliver interactivity with their TV advertising. Today D-Link announced plans to launch the first ever Internet-connected media player, featuring the Yahoo! Connected TV platform. The D-Link device will provide consumers access to the Yahoo! Connected TV experience without the purchase of a new TV. The announcement of this media player signifies the expansion of the Yahoo! Intel

E-Book Joining hands on sales of electronic books, Intel Corp. will take a 7.7 percent stake in a Toppan Printing Co. (TSE:7911) subsidiary in Japan that is preparing to start an e-book store.

Broadcom Connected TV Broadcom Corporation (Nasdaq:BRCM News), a global leader in semiconductors for wired and wireless communications, today announced eleven new set-top box (STB) systemon-a-chip (SoC) solutions with integrated NDS VideoGuard Security Kernel that provide secure digital content delivery for next generation connected home devices. These new Broadcom 40 nanometer (40nm) STB designs will be pre-integrated with improved security and content protection for the delivery of broadcast content and services from NDS, the leading provider of technology solutions for digital pay-TV, and featured at this week's International CES. 2011 International CES --Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and

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wireless communications, today announced that LG Electronics (LG) has selected Broadcom chipsets for use in its wireless connected digital TVs and Blu-ray Disc players. Zoran Connected TV Zoran Corporation (NASDAQ: ZRAN) announced that its SupraHD 788 Internet Connected DTV platform, which also includes Zoran's SupraFRC 201 frame rate conversion solution, powers Toshiba's new ultra thin UL605 LED TV series.

replacing them with DisplayPort and HDMI. This is the most significant announcement in DisplayPort's history, as it opens the markets for both external DisplayPort in PCs and monitors and embedded DisplayPort (eDP) in PCs. As a result, In-Stat (www.in-stat.com) forecasts that external DisplayPort device shipments will see a CAGR of over 100% from 2009 to 2014. Growth of Internal DisplayPort (iDP), developed to replace LVDS in digital televisions, will be gradual, as chip solutions come down in price, and it compares more favorably to LVDS.

ST Micro Connected TV STMicroelectronics (NYSE: STM), one of the world's largest semiconductor companies and a leader in chips for set-top boxes and digital TVs, today introduced out-of-the box content protection for TVs with the latest STB and TV System on Chip (SoC) platform with Adobe Flash Access, a complete protection and monetization solution that is a key component of the Adobe Flash Platform.

Technology Provider Market Semiconductor capital spending is expected to hit $59.070 billion in 2011, up 15 percent over 2010, according to IC Insights Inc. The hard disk drive (HDD) market will keep growing over the next few years due to the ever-burgeoning demand for storage from computer users, game enthusiasts and TV entertainment watchers, according to In-Stat. The research firm said in a new study that some 1 billion HDDs will be shipped in 2014.

Motorola Tablet PC Motorola has high expectations for its Xoom Android tablet. The company is preparing to flood the market with as many as 1 million of them by April

Connections Displayport In December 2010, a diverse group of major technology companies including Intel, AMD, Dell, Lenovo, Samsung, and LG announced that they would stop using LVDS in 2013 and legacy DVI and VGA connectors in 2015, 19

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Service Providers Free IPTV Free, the world's leading IPTV service provider, has announced that it is deploying Movea's MotionIC technologies in next generation remote controls that will come with the new Freebox set-top box (STB) launched in late December 2010 in France. The combination of motion control and gesture recognition provide a more immersive, intuitive user experience that puts users in the driver's seat for new interactive IPTV services. With more than four million subscribers, Free has the largest subscriber base of any IPTV company in the world -- nearly double that of its nearest rival, according to Frost and Sullivan's July 2010 report, "Global IPTV Equipment Market and Provider Competition Analysis."

Market IPTV Market The new forecast indicates that the number of global IPTV subscribers will grow from 44 million at the end of 2010 to 111.5 million in 2014, a compound annual growth rate of 26%. As for service revenue, the global IPTV market is US$17.8 billion in 2010 and is forecasted to grow to US$47.9 billion in 2014, a compound annual growth rate of 28%. By 2014, Europe and North America will generate a larger share of the global revenue, due to very low ARPUs in China and India, the fastest growing (and ultimately, the biggest markets) in Asia.

PC & Notebook Competition Hewlett-Packard maintained its marketleading position, with a share of about 18 percent worldwide, and 29 percent in the U.S. Acer came in second. Both saw their unit volumes decline. For HP that translates to a decline more than 200,000 units in fourth-quarter PC sales, or a little more than 1 percent. For Acer, which had hitched its wagon to the netbook craze a few years ago, it translated to a decline of nearly 2 percent, or more than 222,000 units. Dell, Lenovo and Toshiba all saw their shipments grow, with Lenovo leading t pack, growing a healthy 21 percent.

NTT Docomo Tablet PC Japan's top carrier NTT DoCoMo is to launch a tablet computer running Google software to challenge Apple's hot-selling iPad, a report said Saturday.

Yahoo Connected TV Walt Disney(DIS) is working withYahoo!(YHOO) to make content from Disney's television networks available through Yahoo's Internet TV software, the Wall Street Journalreports.

Quanta Production in China Taiwan-based notebook maker Quanta Computer is set to start production at its new plants in Chongqing, located in inland China, later in first-quarter 2011 and related shipments will be mainly supplied to Hewlett-Packard (HP),

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according to industry sources. However, in response, Quanta declined to comment about capacity and shipments at the plant. Foxconn Production in China HP's other notebook suppliers Foxconn Electronics (Hon Hai Precision Industry) already started production at its Chongqing plants in the second quarter of 2010, while Inventec also started shipping notebooks from its Chongqing plants in the fourth quarter of 2010. With the addition of Quanta's shipments, HP's new supply chain in Chongqing is starting to shape.

the recession, growing nearly 14 percent to 308 million units. Production in China The government of Chongqing City, western China, has successfully created a large notebook production in the city with Hewlett-Packard (HP), Foxconn, Quanta Computer and Inventec stationing there. The base is expected to become the largest around the world, with shipments to increase from 35-40 million units in 2011 to 60-70 million units in 2012 and further to 100 million units in 2013, according to mayor Huang Qi-fan at a signing ceremony in Taipei on January 18.

PC & Notebook Market Growth in PC market Worldwide PC shipments totaled 93.5 million units in the fourth quarter of 2010, a 3.1 percent increase from the fourth quarter of 2009, according to preliminary results from Gartner. For the whole of 2010 PC shipments totaled 350.9 million units. In the fourth quarter of 2010, PC shipments in EMEA totaled 32 million units, a 6.2 per cent increase from the fourth quarter of 2009. PC shipments reached 110.5 million units in 2010, up 13.3 per cent from 2009. Gartner says that worldwide shipments totaled 93.5 million units in the fourth quarter with amounts to growth of only 3 percent over the same period a year ago, falling short of the 5 percent growth it had previously forecast. Gartner Analyst Mikako Mitagawa blames the iPad and other media tablets for the slackening growth. She says the industrys one bright spot in the is oddly enough in the enterprise, where companies are upgrading the machines they issue to their employees. For the full year, the worldwide PC industry recovered from

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Payment Verifone Integration & Cooperation VeriFone Systems, Inc. (NYSE: PAY) and Gemalto (Euronext NL0000400653 - GTO) today announced further developments in their broad strategic partnership. First announced in October 2010, the partnership entails cooperative efforts in EMV chip card solutions, the handover of Gemaltos point of sale (POS) solutions business to VeriFone, and Gemalto's appointment as the preferred supplier of Machine-to-Machine (M2M) wireless modules and related solutions for VeriFone payment systems.

processing and stored data security, pre and post-authorization, by encrypting and tokenizing card data at the point-of-sale. Technology Zigbee Atmel Corporation (Nasdaq: ATML), a leader in microcontroller and touch solutions, today announced that it has achieved ZigBee Certified status for the Atmel Key Remote Controller based on the ZigBee Remote Control(TM) standard and the ATmega128RFA1 single-chip wireless device microcontroller. With this certification, Atmel Key Remote Controller users can now run the ZigBee Remote Control software profile stack to gain secure and interoperable RF-based remote controls with two-way communication and no line-of-sight requirements. ZigBee Remote Control provides a global standard for advanced, greener and easy-to-use RF remotes that removes line-of-sight restrictions while delivering two-way communication, longer range of use and extended battery life. GreenPeak Technologies, a leading fabless semiconductor company, today announced the launch of three new chips, allowing the development of robust and low cost ZigBee RF4CE remote control applications for TVs and set-top boxes, addressing an overall one billion unit annual market. The ZigBee Alliance, a global ecosystem of organizations creating wireless solutions for use in energy management, residential, commercial and consumer applications, today announced it is developing a new standard to deliver the ultimate 3D viewing experience, ZigBee 3D Sync. The standard will create more flexible and efficient 3D connections between 3D HDTVs and 3D glasses. Freescale Semiconductor, the number one supplier of ZigBee RF4CE and

Mobile Payment VeriFone Systems, Inc. (NRF 2011 Booth 659) recently announced PAYware Mobile Enterprise, a secure mobile card acceptance solution that integrates with existing in-store POS systems. In addition to enabling new in-store mobile applications, the solution is supported by VeriFone's PAYware Connect gateway for remote payment acceptance outside of store environments.

Ingenico End to End solution Ingenico, the leading worldwide provider of payment devices and services, announced its Ingenico OnGuard payment transaction encryption and tokenization service offering as a complete cardholder data protection solution to Independent Software Vendors (ISVs) and merchants. Built on the industry accepted standards of 3DES DUKPT for point-to-point encryption (P2PE) and host-based tokenization technology, Ingenico OnGuard provides secure transaction

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IEEE 802.15.4 chipsets, announced today it is collaborating with RealD Inc. (NYSE: RLD), a leading global licensor of 3D technologies, on a new home 3D viewing experience. Freescale and RealD are combining their expertise to create an active 3D eyewear platform that provides realistic high definition 3D TV viewing while solving certain technical and cost problems associated with infrared based systems. Market RFID Chinas RFID market, consisting of tags, readers and software/middleware, is estimated to have grown to $1.4 billion in 2010, up 22 percent from $1.1 billion in 2009. By 2014, the RFID market will reach $2.4 billionmore than double the total from 2009.

Digital Signage Otrum Cloud Computing OTRUM has entered a contract with IBM to move its OTRUM Digital Signage service to IBM's test and development cloud. At the same time, OTRUM Enterprise launched 11.1.11 is built around cloud based technology and sets the future direction for OTRUM.

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