Asia Semiconductor Sector - Credit Suisse

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21 September 2015

Asia Pacific/Taiwan

Equity Research

Strategy / Technology

Asia Semiconductor Sector THEME

Qualcomm continues its push across and

beyond Mobile at its 3G/LTE Summit

Figure 1: Qualcomm continues its focus on emerging markets

Source. Qualcomm

■ Qualcomm showcases its ecosystem. Qualcomm, covered by CS analyst

Kulbinder Garcha, hosted its 9th annual 3G/LTE summit in Hong Kong on

15-16 September, featuring 1,900 attendees, 100+ carriers, 150 OEMs, and

90 expo partners, with 75 presentations over two days. The event marketed

Qualcomm's technology and demonstrated the scope of the ecosystem in

mobile and is now expanding out into adjacent connected and smart

applications. We present implications for the Asian upstream.

■ Key show themes. We summarise in the report takeaways from the show

(1) Qualcomm's 2016 refresh to push advanced modem features down

market, (2) Internet of Everything proliferating and advancing from

'connected' to 'smart' devices, (3) Snapdragon 820 production progressing

ahead on 14nm Samsung, (4) carriers pushing 4G+ carrier aggregation and

802.11ac MIMO/802.11ad in 2016, (5) USB type-C, fast charging and

fingerprint ID emerging as key new features, (6) camera remains a spotlight,

with dual camera solutions in development, and (7) touch moving to in-cell.

■ Qualcomm's high-end and mass market innovation keeps the pressure

on Mediatek. We stay conservative on Mediatek given the competition in

baseband as the event showed continued strength of Qualcomm's

ecosystem and technology which ensures the battle to offer more

technology at very competitive prices continues. Implications for TSMC are

mixed as gains at Apple and from new content drivers in mobile/IoT are

somewhat offset by former top customer QCOM continuing to diversify.

Research Analysts

Randy Abrams, CFA

886 2 2715 6366

[email protected]

Haas Liu

886 2 2715 6365

[email protected]

21 September 2015

Asia Semiconductor Sector 2

Focus charts Figure 2: Qualcomm's roadmap refreshing again from low-end to high-end in 1H16

2014 2015 2016

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Pre

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Main

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Qualc

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m S

600

Entr

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S4

00

Low

S2

00

LTE Cat4, TD, Quad, 1.2GHz, A53

808428nm HPM

Source: Company data, Credit Suisse estimates

Quad, 2.3-2.7GHz

9625M28nm

9635M28nm

8916/ S410

28nm LP

8936/ S610

28nm LP

8939/ S615

28nm LP

LTE Cat4, TD, Quad, 64-bit1.5-1.7 GHz

8992/ S808

20nm SoC

8994/ S810

20nm SoC

LTE CA Cat6, TD, 64-bit


8908/ S210

28nm LP

8909/ S215

28nm LP

LTE CA Cat4, TD,Quad A7 1.1 GHz

TD-SCDMADual A7 1.1 GHz

8996/ S820

14FF

LTE CA 450Mbps, Hydra 64 bit

8976/ S620

28nm HPM

8956/S618

28nm HPM

Octa, 4 A72 + 4 A53, big.LITTLE, 1.4 GHz, CA, 4K

Hexa, 2 A72 + 4 A53, big.LITTLE, CA, 1.2 GHz, 4K

S42528nm LP

Octa, 8 A53, 1.7 GHz, 64-bit, Cat 7, FHD

8953/S430

28nm HPM

Octa, 8 A53, 1.2 GHz, 64-bit, Cat 4, CA, FHD

LTE Cat4, TD, Octa, 1.4GHz

S61728nm HPM

Octa, 8 A53, 1.5 GHz, Cat 7, CA, FHD

S41228nm LP

Quad, 4 A53, 1.4 GHz, 64-bit, Cat 4, FHD

8952/ S415

28nm LP


S21228nm LP

Quad, 4 A7, 1.3 GHz, Cat 4, FHD

S61628nm HPM



Figure 3: Qualcomm's upgrades the modem in its S820 Figure 4: Qualcomm S820 designed on 14nm FinFet

Source: Qualcomm Source: Qualcomm

21 September 2015


Qualcomm continues its push across and beyond Mobile at its 3G/LTE Summit Qualcomm hosted its 9

th annual 3G/LTE summit in Hong Kong on 15-16 September

featuring 1,900 attendees, over 100 carriers, 150 OEMs, and 90 expo partners, with 75

presentations over two days. The event marketed Qualcomm's technology and platforms

and demonstrated the scope of the eco-system in mobile and is now expanding out into

adjacent connected and smart applications. The following are key takeaways from the

presentations from Qualcomm, its invited technology partners and carriers along with

meetings with companies at the tech expo:

1. Qualcomm's high-end and mass market innovation keeps the pressure on

Mediatek. Qualcomm's Snapdragon 820 raises the bar again on modem and

processor performance, and higher-end carrier aggregation should keep it in most of

the non-Apple flagship smartphones and high-end Chinese models. In the mainstream,

Qualcomm has cut 15% of its cost to streamline but the event shows no retrenchment

and another refresh bringing down carrier aggregation, octa-core and advanced

imaging into a lower-end stack to stay aggressive competing for share with Mediatek

in the mass market. Qualcomm also demonstrated better tools for its reference design

including Global Pass to speed time to market gap and a comprehensive online

database of qualified suppliers.

2. Internet of Everything remaining a key theme to expand beyond mobile.

Qualcomm and its partners and carriers also presented on a new wave of new

Internet of Things devices. The first wave was just adding connectivity (Bluetooth or

Zigbee) but a proliferation of new products are moving beyond being connected to

also now being smart connected devices. Qualcomm's IoE (Internet of Everything)

team is working on several new projects including Snapdragon Flight reference

designs for drones, surveillance and sport cameras, robotics, and automotive products

that can have a more sophisticated operating system, camera/computer vision and

contextual awareness.

Figure 5: Internet of Things devices evolving from being connected to being smart connected devices

Source: Qualcomm

Qualcomm’s 9th 3G/LTE

Summit was held on 15-16

Sept in Hong Kong

21 September 2015


3. Manufacturing re-confirmed to start at Samsung on 14nm. Samsung confirmed

that it would use 14nm FinFET for its Snapdragon 820, widely expected but also

validated from Qualcomm's side to not start at TSMC as it did on 28nm/20nm. TSMC

is acknowledging no 16nm with Qualcomm initially, though we still expect it to be the

base case for Apple in 2016 for its a10 refresh also using InFO.

Figure 6: Qualcomm moving its Snapdragon 820 processor to 14nm FinFet at Samsung

Source: Qualcomm

4. Carriers pushing 4G+ service, with 5G only slated for a 2020 launch. China

Mobile and SK Telecom are both aggressively driving towards more advanced carrier

aggregation and VoLTE as a 4G+ standard to achieve higher capacity, faster data

rates and allow more proliferation on IoT devices on the network to improve service in

the interim until 5G is ready. Both carriers project 2018 initial trials of 5G with full

commercialisation only in 2020, keeping that catalyst a few years away for the supply

chain.

5. USB Type-C, Fast Charging and fingerprint ID emerging as key new features.

Vendors at the expo (On Semi, Dialog, Fairchild, Analogix, Truly) are aggressively

rolling out USB Type-C and Fast Charging solutions. The USB Type-C promises to cut

down on the 1 bn cell phone chargers discarded per year by removing the number of

cables while speeding throughput and allowing 'better than set-top quality' images to

be transmitted from the cell phone to a large screen display.

Figure 7: Dual camera phones on display at the expo Figure 8: Dual camera modules under development

Source: Altek Source: Altek

6. Camera remains in the spotlight, with dual camera gaining more traction. High-

end camera features remain a push across the eco-system from module makers,

chipset suppliers, carriers and software developers. China Mobile indicated that 76%

of the smartphones on its network are now 8/13MP. CMOS image sensor suppliers,

Sony and Omnivision, see an expanded opportunity for their sensors for dual camera

use, and Sunny Optical and Altek showcased an array of dual camera modules

entering into production. The dual camera allows for two cameras to be set to different

specifications and then both images fused for a better integrated final product that can

Qualcomm to manufacture

its Snapdragon 820 on

14nm at Samsung

21 September 2015


offer better colour detail, higher quality images or an adjustment of the focal point after

the picture is taken.

7. Touch panels moving toward in-cell. At the show, JDI and Solomon Systech

profiled solutions for in-cell touch panels that remove the separate module. The price

points for China modules, according to Solomon Systech, are dropping to US$13 for

an incell module and US$9 for an oncell module.

We also show the key themes from each of the presentations that we attended split

between Qualcomm, carriers and its supply chain partners.

Qualcomm's presentations at the summit

Evolution of LTE in the networks

Cristiano Amon, EVP and Co-President, Qualcomm Technologies

Dr. Murthy Renduchintala, EVP and Co-President, Qualcomm Technologies

Qualcomm’s Chipset Division Co-Presidents kicked off the conference by highlighting the

growing traction of LTE with Carrier Aggregation, improved co-existence with WiFi and the

ability of its chipsets to support LTE over the unlicensed bands. The presentation also

unveiled the company’s X12 modem used in the upcoming Snapdragon 820 supporting

CAT 12 downlink speeds, CAT 13 uplink speeds and tri-band Wifi. The company also

discussed its launch of an enhanced high-end octa-core chip (Snapdragon 617) for 4Q15

devices and its first mainstream octa-core chipset (Snapdragon 430) for 2Q16 devices.

The following are the highlights of the chipset discussion.

■ LTE launches growing. The LTE roll-out continued and is now being deployed at

over 670 operators in 181 countries (up 30% YoY), and is commercially launched in

422 networks across 143 countries. Qualcomm’s modem is deployed in devices in

each of these networks with up to 23 bands supporting the new iPhone 6S.

■ Carrier aggregation launches expanding. The company cited 131 operators

investing in Carrier Aggregation with 88 commercial launches (73 CAT 6 + 15 CAT 4)

across 60 countries, up from 49 launches in January 2015. Qualcomm cited real life

speed improvements moving from CAT 3 to CAT 6:

1. Photo download speeds increase: Download speed for 10 21MP photos

improves from 51 seconds to 16 seconds

2. Cloud access improves: Download speeds for access of a 200 MB presentation

from the cloud drops from 117 seconds to 38 seconds, and

3. Video streaming improves. Streaming throughput of a 10 Mbps HD video rises

from 3.6 Mbps to 10.2 Mbps.

■ Uplink carrier aggregation also improves capacity. Uplink CA provides a capacity

boost, providing carriers' 1.7x throughput or 3.0x more capacity vs LTE carriers

without aggregation. The company believes that Uplink improves compression gain up

to 79% for up to 50% faster web page loading time.

■ 4G+ experiences being rolled out. Qualcomm is now pitching a 4G+ evolution that

can take data speeds from 150Mbps to 600Mbps to allow higher peak data rate, lower

latency, more capacity and better use of radio spectrum.

■ Wifi capacity also improving. The company's new chipsets are rolling out now with

MU-MIMO multi-user-multiple input-multiple output) support and will support the

60GHz 802.11ad standard in 2016. Qualcomm indicated that MU-MIMO provides 2-3x

faster speeds than the standard 802.11ac, and 802.11ad will lift speeds further to 4.6

Gb speeds.

Qualcomm highlighted its

Snapdragon 820 features

including a notable modem

upgrade to CAT 12 downlink

and a new custom designed

Kryo processor

21 September 2015


■ LTE-U (unlicensed spectrum) provides benefits over Wifi. Qualcomm is rolling out

technology in support of LTE-Unlicensed. Atish Gude, Sr. VP of Corporate Strategy for

Verizon cited a desire to use LTE-Unlicensed and VoLTE to keep traffic from moving

all over to Wifi (80% is now already on Wifi), and as it also offers a lower cost way to

add traffic in high density cities, noting that Qualcomm's chipsets already support it.

Snapdragon 820 introduced on 14nm and upgrading the high-end experience

Qualcomm's chipset presentation also focused a lot of attention on the upgrades that the

Snapdragon 820 makes to create an immersive user experience by allowing advanced

imaging, virtual reality and computer vision. The key innovations come in (1) pixel quality

and quantity, (2) high resolution audio, (3) 3D surround sound, (4) natural user interfaces

and (5) contextual interactions.

Qualcomm’s Snapdragon 820 was confirmed to be on 14nm technology and fabbed at

Samsung in line with most market expectations. The chipset includes several upgrades

over this year's Snapdragon 810:

Figure 9: Qualcomm upgrades the modem in its S820 Figure 10: Qualcomm S820 designed on 14nm FinFet

Source: Qualcomm Source: Qualcomm

■ X12 LTE modem: Qualcomm upgraded the modem to reach a higher grade of carrier

aggregation for higher peak data speeds and to enable higher capacity for the carriers:

o CAT 12 downlink speeds. Up to 600 Mbps LTE Cat 12 downlink using 3x20

MHz + 256-QAM modulation and supporting 4x4 MIMO

o CAT 13 uplink speeds. Up to 150 Mbps CAT 13 uplink via 2x20 MHz CA and 64-

QAM modulation.

o Tri band Wifi. Uses the 2.4GHs, 5GHs, and 60 GHz bands using 802.11ac 2x2

MU-MIMO and 802.11ad

o Converges LTE-U and LTE WiFi Link aggregation. Converges LTE with the

unlicensed spectrum

o Zeroth platform. Cognitive link selection which adds machine learning

capabilities including more intelligent WiFi calling. The modem also offers a low

power WiFi hotspot option.

o Better modem performance. Qualcomm cited better performance of its modems

over its peers. In lab tests, Qualcomm cited zero dropped calls vs 13-20% failures

Qualcomm's x12 modem

will also support LTE-

Unlicensed and Wifi Link

aggregation

21 September 2015


with three competitors’ modems and zero packet switched handover failures vs

25-28% failures with two competitors’ modems.

■ Kryo CPU: The custom made CPU is a break from using ARM's big.LITTLE

architecture used in the Snapdragon 810 and returns to a Qualcomm developed

instruction set claiming 2x performance and 2x efficiency fabbed on 14nm FinFET

(using Samsung foundry).

■ Adreno 530 Graphics Processor (GPU): The Adreno 530 GPU has up to 40% better

performance and up to 40% better power efficiency for better image and graphics

processing.

■ Hexagon 680 Low Power Digital Signal Processor (DSP): The DSP is made sensor

aware for always on inputs and has up to 3x performance and up to 10x power

efficiency due to special instruction sets. NXP Labs was at the show demonstrating

sound software that can take advantage of the open platform DSP.

■ Security and Cognitive Technologies. The chipset also includes its Haven Security

Management, Smart Protect and its Zeroth Cognitive Technologies.

New mainstream and entry level platforms highlighted.

■ Qualcomm also introduced two new chips, the octa-core Snapdragon 617 for year-end

devices and the Snapdragon 430 bringing octa-core to the mainstream in 2Q16:

Figure 11: Qualcomm roadmap refreshing again from low-end to high-end in 1H16

2014 2015 2016

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Pre

miu

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Main

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Qualc

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600

Entr

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S4

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Low

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LTE Cat4, TD, Quad, 1.2GHz, A53

808428nm HPM


Quad, 2.3-2.7GHz

9625M28nm

9635M28nm

8916/ S410

28nm LP

8936/ S610

28nm LP

8939/ S615

28nm LP

LTE Cat4, TD, Quad, 64-bit1.5-1.7 GHz

8992/ S808

20nm SoC

8994/ S810

20nm SoC



8908/ S210

28nm LP

8909/ S215

28nm LP

LTE CA Cat4, TD,Quad A7 1.1 GHz

TD-SCDMADual A7 1.1 GHz

8996/ S820

14FF

LTE CA 450Mbps, Hydra 64 bit

8976/ S620

28nm HPM

8956/S618

28nm HPM

Octa, 4 A72 + 4 A53, big.LITTLE, 1.4 GHz, CA, 4K

Hexa, 2 A72 + 4 A53, big.LITTLE, CA, 1.2 GHz, 4K

S42528nm LP


8953/S430

28nm HPM

Octa, 8 A53, 1.2 GHz, 64-bit, Cat 4, CA, FHD

LTE Cat4, TD, Octa, 1.4GHz

S61728nm HPM


S41228nm LP

Quad, 4 A53, 1.4 GHz, 64-bit, Cat 4, FHD

8952/ S415

28nm LP


S21228nm LP

Quad, 4 A7, 1.3 GHz, Cat 4, FHD

S61628nm HPM



21 September 2015


■ Snapdragon 620 big-little octa-core. The company’s new premium product will

feature (1) x8 LTE CAT 7 modem with up to 300 Mbps downlink and 100 Mbps uplink,

(2) premium camera, (3) Adreno 510 graphics, and (4) octa-core with ARM Cortex A72

+ a53.

■ Snapdragon 617 octa-core (year-end 2015). The Snapdragon 617 will launch in

devices by year-end 2015 and is a slightly lower-end product than the Snapdragon

620 featuring a lower power octa-core A53 instead of a quad core A72 paired with

A53. The chipset will include x8 modem with CAT 7 speeds.

■ Snapdragon 430 octa-core (early 2016). The company’s mainstream product will

launch in devices in 2016 featuring (1) x6 LTE CAT 4 modem with up to 150 Mbps

downlink and CAT 5 75 Mbps uplink, (2) 21 MP camera (1080p30 video, enhanced

autofocus), (3) Adreno 500 graphics, (4) low power sensor engine to offload the

application processor, (5) full HD display support with EcoPix and TruPalette camera

features, (6) Hexagon 536 DSP to run voice, audio and other applications on the DSP

rather than processor for lower power and (7) octa-core a53 processor for the mid-tier.

■ Snapdragon 210 quad core. The entry level platform with quad core a7 processor

and x5 CAT 4 modem is now in 200+ device designs shipped or in the pipeline since

the launch on 9 September 2014.

■ Coming chipsets also previewed on the roadmap. Qualcomm’s chipset roadmap

for 1H16 will include (1) Flagship tier: Snapdragon 820 with x12 modem, (2)

Premium tier: Snapdragon 618 and 620 with x8 modem for the premium tier, (3)

Mainstream: Snapdragon 412 quad core with x5 CAT 4 modem and 430 octacore

with x6 modem and (4) Low-end: Snapdragon 212 quad core with x5 CAT 4 modem.

Qualcomm also announced several other capabilities with its processors focused on

camera processing, WiFi calling and quick charge:

■ Spectra Image Signal Processor improved for better camera processing.

Qualcomm’s dual image signalling processor enables a better quality camera. The ISP

offers better low light, a slim Z-Height and leading resolution, with 25% lower power in

4K compared to its prior image signal processor.

■ Zeroth powered WiFi calling. Qualcomm’s Zeroth WiFi calling supports call

continuity between WiFi and LTE and cognitive capabilities to select the best link

based on signal quality, internet reachability and Wifi throughput.

■ Qualcomm Quick Charge 3.0. The new Quick Charge is 4x faster than conventional

charging, >35% more efficient than Quick Charge 2.0 and connector agnostic.

LTE Multimode, Multiband Complexity with RF

James Wilson, VP, Product Management, Qualcomm Technologies

Qualcomm has also been working on helping solve some of the more challenging RF

challenges that LTE brings on trying to support higher data speeds, multiple spectrum

brands globally to allow 2G, 3G and 4G roaming across different frequencies, and carrier

aggregation that can combine multiple frequency bands for faster and more efficient data

transfer. The presentation profiled its progress on developing the front-end RF modules

and solutions, which to date is more apparent in the transceiver and envelop tracking than

on the power amplifier and switch still supplied by external chip companies such as Avago,

Skyworks and Murata.

■ Frequency band complexity rising. Qualcomm noted that 4G now supports 49

bands vs 9 bands in 3G and 3 bands in 2G, and that the RF section has grown even

more complex factoring in over 250 carrier aggregation combinations of bands in use

simultaneously.

Qualcomm is providing a

complete front-end RF

solution, though more of its

traction is on transceivers

and envelope tracking, with

third-party players leading

on PA, switch and filters

21 September 2015


■ Qualcomm RF traction. The company has 350 commercial designs and 40 OEMs for

some combination of its envelope tracker, PA/switches and antenna tuners. The

company has a system level solution for hardware and software and then splits it into

global and regional solutions. The company’s RF front-end includes antenna tuner,

power amplifier+switch, envelope tracker (for lower power and a better thermal

footprint) and transceiver. The company’s dynamic antenna matching tuner (QFE

2550) has a closed loop feature to dynamically adjust in a phone for fewer dropped

calls, faster data, up to 63% lower power and a broader antenna range from 600 MHz-

2,700 MHz. The multimode PA (QFE 43x5) and switch (QFE4320) focuses on power

and efficiency. The envelope tracker (QFE 3100) reduces power consumption and

thermal footprint of the RF section.

■ RF solutions for LTE and LTE advanced. Qualcomm has a regional LTE CA that

includes its antenna tuner (QFE2550), next generation PA+switch (QFE 4320, transceiver

(WTR2965), power tracker (QFE2101) and also has an interface to its application

processor. The company also has a global model using antenna tuner (QFE 2550),

antenna switch (QFE10x5), power amplifier (QFE43x5), transceiver (WTR 3925) and

envelope tracker (QFE3100) also with interface to the application processor.

■ RF transceiver products. The company offers a suite of transceivers, including (1) WTR

3925 single chip RF transceiver supporting carrier aggregation, (2) WTR 2965 (a 2CA

transceiver announced with the Snapdragon 430 and Snapdragon 617/618/620 for

mainstream phones also integrating a GPS core), (3) WTR 4905 multimode RF

transceiver for the volume tier, and (4) WTR 3950 (provides LTE uplink with 2 or 3

downlink CA channels up to 60 MHz carrier aggregation plus support for the unlicensed 5

GHz bands). The company also introduced a commercial LTE-Unlicensed 5 GHz

transceiver (WTR 3950) as a companion to the WTR 3925 transceiver (2 downlink CA

channels) and WTR 4905 transceiver (3 uplink CA channels).

Figure 12: Qualcomm offers a complete RF front-end solution

Source: Qualcomm

21 September 2015


Mobile technologies in Internet of Everything:

Wearables, cameras, drones, media, gaming and

home

Hugo Swart, Senior Director of Product Management, Qualcomm

Qualcomm is putting more effort on expanding its communication platforms into IoE

(Internet of Everything) channels including wearables, home automation, consumer

electronics, machine to machine communication and smart city applications. The

presentation profiled its push into each of these areas and reference design support from

its invested company Thundersoft.

Figure 13: Qualcomm partnering with Thundersoft for IoT reference designs

Source: Qualcomm

■ Qualcomm’s Internet of Everything channels. Qualcomm targets four new business

channels beyond mobile for Internet of Everything devices (1) wearables (smart

glasses, smart watches, smart trackers, body sensors), 2) control and automation

(home automation, energy management, security, appliances, lighting control), (3)

consumer electronics (media and entertainment—video/audio streaming, content

consumption and embedded), and (4) machine to machine and smart cities (energy

and metering, industrial, building automation and transportation).

■ Digital home and consumer electronics moving from connected to smart. Home

and consumer electronics is increasingly adding connectivity such as adding

Bluetooth/WiFi for connectivity and MCU for limited functionality (Bluetooth speaker

streamed from the phone). In the new wave, however, Qualcomm expects devices to

improve their capability and move from connected appliances to smart appliances, taking

advantage of an advanced OS (Windows, Android, Brillo) sophisticated user interface,

voice recognition, display, camera, computer vision and context awareness. Future

applications will expand from there to be autonomous and have machine learning.

■ Consumer Electronics categories of focus for Qualcomm’s IoE group.

Qualcomm’s consumer electronics group is focused on (1) video and gaming for TV,

set-tops, digital media access and virtual reality, (2) wireless docking and smart

monitors, (3) sports and security cameras, (4) robotics (drones and robot cleaners),

and (5) home hub (smart speaker with display, home tablet and digital photo frames).

Qualcomm is working with

Thundersoft to build Internet

of Things reference designs

21 September 2015


■ Video and gaming for the TV and monitors. Qualcomm offers multiple components

including CPU, GPU, memory bandwidth, connectivity, security, audio and software to

address applications including Over the Top (OTT) and Digital Media Access (DMA)

Boxes, gaming boxes, portable projectors, TV side bars, set-tops and projectors. It also

has a reference design for three products for docking a smartphone to a big screen (1)

wireless dongle for 4k streaming, (2) wireless monitor and (3) wireless dock.

■ Smart assistant, speaker and home hubs. The team is addressing home control

applications with voice control, cloud connected personal assistant, music streaming

from cloud to device, display with UI for apps and a camera for video analytics. The

APQ 8009 reference design addresses these applications.

■ Camera target market. Qualcomm is now also targeting connected surveillance

cameras, sports cameras and car recorders with its ability to offer processing,

connectivity, sensors, software and image processing.

■ Snapdragon Flight Reference Design for drones. Qualcomm believes that the

drone market can scale as large as the standalone digital camera and action camera

market, equating it to a flying camera. The company is now leveraging its Snapdragon

chipset, drone software and reference design into drones and robotics using enabling

technology including DSP, 3G/4G/Wifi connectivity, 4k cameras and video engine,

image signal processor, computer vision, location technology and voice control. The

company’s Snapdragon flight is a reference design for drones with a Snapdragon

processor, 4k2k camera support up to 21MP, flight control using sensors, GPS and

computer vision, software for flight control and navigation and Wifi.

Figure 14: Qualcomm introduces Snapdragon Flight to target the drone market


■ Thundersoft support of Qualcomm’s IoE initiative. Thundersoft is a Qualcomm

invested company with over 2,000 mobile system engineers and serving 80+

Qualcomm customers to help get devices to market across mobile, IoE, automotive

and enterprise, and security. The company can supply a system on module building in

the board, porting the Android OS and embedding software on top.

■ Thundersoft designs implemented into drones and IoE products. Thundersoft has

also developed a drone design for the top three Chinese customers based on

Snapdragon flight including software algorithms, OS for flight control and camera

streaming and a board with HD camera, GPS, gyro and interfaces. The company has

also enabled IoE products for IP camera using MSM8916/8956 for AJhua and

Uniview, smart watches using the MSM8016/8026 including a top three global OEM,

and virtual reality using the MSM8084 and MSM8996 with ANTVR.

21 September 2015


Connectivity in next generation SoCs

Way-Shing Lee, VP, Technology, Qualcomm

The presentation focused on more advanced uses for Qualcomm's high-end platform in

driving more innovation. The new chipset makes upgrades in peak upload and download

speeds by enhancing carrier aggregation, extends support for switching to WiFi and the

unlicensed bands to supplement the carrier network, and allows better user services

including 4k video, gaming, better wireless docking and faster cloud computing.

■ Video and cameras in smartphones stimulating data and cloud traffic. Qualcomm

is seeing a rapid increase in multimedia prompted by the substantial specification

upgrades over the past four years including (1) video resolution rising 8x from 720p to

4K, (2) front camera improving 5x from 1.3MP to 8MP and (3) rear camera improving

3x from 5MP to 16MP.

■ Rising data and video traffic. Data traffic continues its growth across browsing, audio

and video. The complexity of mobile web pages is rising, with a 3.7x increase in page

size, 4.4x increase in image size and 2.5x longer loading time in the past four years.

Audio streaming traffic is also projected by Cisco to grow at a 53% CAGR from 2014-

2019. Video traffic is projected to grow from 55% to 72% of traffic from 2019, with total

traffic projected to increase from 2.5 Tb/month to 24.4 Tb/month. Qualcomm cited that

this higher audio/video is growing consumer cloud storage at 9x growth rates.

■ Carrier aggregation and modulation making improvements. Qualcomm’s

Snapdragon 820 is upgrading the carrier aggregation, modulation speed and support

for LTE in the unlicensed band at 5 GHz or linked with WiFi at 2.4/5 GHz. The new

x12 modem in Snapdragon 820 supports three carriers of downlink traffic and 5-7x

improvement on capacity and throughput. The company is also upgrading modulation

from 64-QAM to 256-QAM for 33% higher throughput over Snapdragon 810 and 50%

higher throughput over Snapdragon 617. For carriers with less spectrum for carrier

aggregation, the company is upgrading from 2x2 MIMO to 4x4 MIMO, which also

increases capacity 2x to 600 Mbps on 40 MHz of spectrum.

Figure 15: Qualcomm's Snapdragon 820 making modulation improvements to improve data throughput

Source: Qualcomm

■ Snapdragon 820 supports LTE in the unlicensed band and higher WiFi support.

The Snapdragon 820 will support the unlicensed band and WiFi Link aggregation. The

Snapdragon 820 supports better voice services including VoLTE, text messages and

voice/video calling. The hotspot also allows minimal AP wake-up for 45% lower power.

The company believes that Tri-band WiFi will be important to support 802.11ac multi-

user MIMO for 2-3x better performance to 867 Mbps performance and also 802.11ad

Qualcomm cited

improvements to its modem

throughput in the

Snapdragon 820 over prior

generations

21 September 2015


which can reach up to 4.6 Gbps on the 60 GHz bands suitable for short-range video.

Use cases for higher data include wireless docking, 4k video streaming, content

sharing and gaming, kiosk services and network and cloud access.

The key summary of the Snapdragon 820 was reiterated including CAT 12 CL for 600

Mbps peak downloads, CAT 12 UL for 150 Mbps peak uploads, Tri-Band WiFi over

2.4, 5, and 60 GHz and 2x2 MU-MIMO and 802.11ad, LTE-Unlicensed and LTE-Wifi

Link and a Zeroth cognitive platform to intelligently switch between LTE and Wifi.

Next generation products for Emerging Markets

Kendar Kondap, Senior Director, Product Management, Qualcomm

Qualcomm's session on next generation products for emerging markets started ahead of

schedule but the second half of the presentation provided updates on more features on

mainstream Snapdragon products and additional features around the camera, touch and

voice quality.

■ Camera influences purchases. Qualcomm cites the camera as a key differentiator

for smartphones. In its user survey, 56% believe that the camera quality is very or

extremely important in their smartphone purchase, with the top five capabilities

demanded being (1) auto-focus (36%), (2) low-light shooting (28%), (3) image

stabilisation (28%), and (4) digital zoom (27%).

■ Dual camera introduction. Qualcomm profiled i-mobile’s IQ Z-Pro that has a dual

camera which has one 13MP for the regular image capture and another 2MP camera

for recording the depth of the camera to adjust the depth after taking the photo. The

product used the Snapdragon 8939, although the company expects the Snapdragon

430 to support that capability in the coming year.

■ Snapdragon 430 sensor engine. The company's new Snapdragon 430 will add in a

sensor engine that can offload some processing instructions to a separate sensor hub.

The hub provides always on uses such as tape to wake for the smartphone,

pedometer and a smart case.

■ ImproveTouch technology. Qualcomm’s ImproveTouch technology improves touch

capability for wet fingers and gloved touch.

■ Voice call quality. Qualcomm’s audio engine provides clear VoLTE with noise cancelling

technology, active noise cancellations, high fidelity music playback, 5.1 audio, and loud

playback with WSA (speaker phone amplifier) smart amps and surround sound plus

integrated Dolby and DTS. The company also provides access for software application

developers to write audio software programs to its Hexagon DSP.

Qualcomm Global Pass

David Tokunaga, Senior Director, Product Management, Qualcomm

Qualcomm presented a couple of sessions on Global Pass, a program designed to

streamline the timeline from device concept through global commercialisation by

addressing challenges in the process (language support, carrier qualifications, GMS

certification, in country testing and local business relationships).

■ Qualcomm reference design progress. Qualcomm now has 1,080+ devices

launched or in the pipeline, 270+ commercial LTE devices and 180+ in the pipeline

across 21 countries and has tightened development time inside 60 days through its

global pass program.

■ Qualcomm Global Pass. Qualcomm’s Global Pass integrates device specifications,

modem configurations and operator specific requirements into a hardware and

software QRD offering coupled with the Snapdragon. The program streamlines

Qualcomm's Global Pass

speeds the process for its

device companies in

launching new phones in the

market by up to 12 weeks

21 September 2015


regional and carrier testing to speed commercialisation. The company announced that

American Movil will streamline device integration across its networks.

■ Streamlines exports to other emerging markets. Qualcomm has designed a

system for fast export of smartphones to emerging markets. The company is setting

up a global pass to handle (1) technical requirements for network interoperability, (2)

requirements for different carriers, (3) time to market for sales windows, (4) validation,

test, support and software troubleshooting, and (5) distribution including packaging,

provisioning and fulfilment time and costs.

■ Speeds time to market. Qualcomm’s Global Pass speeds devices built on its Global

Pass reference design through qualification and launch across countries and

networks. The company cited 12 weeks savings commercialising a device by

addressing development challenges with its Global Pass Program: (1) 14 language

support, (2) regional settings and network configurations, (3) adds customer feature

requests, (4) obtains GMS certification and (5) provides field testing and technical

acceptance. The company also offers a carrier fast track based on platform reuse and

pre-agreed carrier compliance to hardware and software.

Figure 16: Qualcomm's Global Pass initiative speeds handset device launches in emerging markets up to 12 weeks

Source: Qualcomm

■ Platforms expanding across multiple tiers. Qualcomm’s first platform release was

with the MSM8909 on entry-LTE in 3Q15 but is adding the mid-range MSM8952 in

4Q15 and mid-high-end products in 2Q16 including MSM 8937, MSM8952/53/56 and

MSM8976.

■ Enhancements into the platform. Qualcomm provides end to end features for camera,

audio and voice and UI enhancements to the contacts, messaging, phone dialler,

language support and home screen and profile settings. The camera is packed with

additional features including Chromaflash for low light and Ubifocus (FIVE photos shot at

different focal length simultaneously). The company also supports OEM development of

their own branded applications and interface to differentiate the phone.

21 September 2015


Qualcomm update on the hardware component

ecosystem

Neil Jablon, Director, Product Management, Qualcomm

The presentation provided an outline of Qualcomm's growing reference to design support,

with details on its global components database, lab support and growing list of preferred

suppliers on its network, including the recent addition of USB Type C.

■ Increase diversity of components on its reference design. Qualcomm now has 31

component types on its preferred vendor list (sensors, cameras, RF, connectivity,

power management, displays) and has recently added additional components (power

inductors, USB Type-C).

■ Lab support increasing. The company now has internal labs in the US and China for

vendor selection and third-party labs in China and Europe using Qualcomm test

procedures, equipment and training by Qualcomm to verify components earlier in the

process and add more components on the future product roadmap.

■ Global components data base of preferred vendors. Qualcomm has established an

online hardware database in English and Mandarin with a catalogue of 31 major

product types, 1,000+ parts and key information including chipsets supported, pin-to-in

compatibility, and chipset licensees. Qualcomm now supports from low-end up to

flagship with its QRD program.

Carrier presentations at the summit

China Mobile

Huidi Li, EVP of China Mobile Communications Corporation

China Mobile provided an update on its wide commercial 4G service, strategy to push carrier

aggregation and VoLTE, promote more IoT devices and proliferation of attractive but low cost

smartphones on its network and drive to have a global 5G standard for a 2020 launch.

The carrier is looking for steady growth rather than another inflection up, showing data that

it is shipping 70 mn LTE devices per quarter as of 2Q15, flat QoQ, and projects the

shipping of 600 mn units over the next two years, implying about 75 mn units/quarter run

rate in 2016-17. The focus is also on pushing device quality to drive data, with more

models moving to larger screen sizes, more memory, higher resolution and more

advanced cameras.

■ TD-LTE now a global mainstream standard. China Mobile indicated that TD-LTE is

now fully mainstream unlike the TD-SCDMA service before it, with 63 TD-LTE

networks commercial and 91 in deployment, with 1.2 mn+ base stations deployed

(40% of the world’s LTE base stations), and 317 mn users globally (43% of total

users). TD-LTE offers advantages including being more suited for asymmetric traffic,

more suitable for massive MIMO and is now able to be converged with FDD-LTE.

■ China Mobile 4G coverage now extensive. By August, the company had installed

more than 1 mn base stations covering 100% continuous coverage in cities, villages

and towns plus enhanced indoor coverage to reach the 1 bn population. The 4G user

base reached 208 mn by July, with 99 mn net additions in 1H15. The company has

seen an 18% increase in ARPU, 240% increased DOU.

■ Terminal availability scaling and improving. China Mobile now has over 1,000

different TD-LTE smartphones from 200+ vendors. Handset sales of TD-LTE have

reached 230 mn, with growth from 8 mn in 1Q14, 16 mn in 2Q14, 32 mn in 3Q14, 60

mn in 4Q15, 70 mn in 1Q15 and 71 mn in 2Q15 as prices have now dropped since

Qualcomm has an online

database of qualified

components for its reference

design

China Mobile projects the

shipping of 600 mn units in

the next two years, implying

75 mn/quarter, up from the

current 70 mn run rate

21 September 2015


2013 from US$200 to below US$50. The company has seen device spec upgrades on

four key dimensions (1) Larger screen sizes: 49% of smartphones now on 5/5.5”;

Higher Resolution: 58% of smartphones now HD or FHD; Memory: 58% of

smartphones are now at 1 GB DRAM and 19% at 2 GB of DRAM, and (4) Cameras:

76% of smartphone cameras on its network are now 8 megapixel (34%) or 13+

megapixels (42%).

Figure 17: China Mobile highlighting proliferation of 5/5.5" devices, FHD screens, 1-2GB DRAM and 8/13MP cameras

Source: China Mobile

■ Qualcomm chipset milestones in helping it improve its 4G roll-out. The company

highlighted its partnership with Qualcomm including its first TD-LTE phone using

MSM8960, highest volume (MSM 8926) with 350 models, and first VoLTE handset

below US$150, the China Mobile N1 using the MSM8916.

■ Device development strategy. China Mobile is focused on several vectors for

devices on its network in pushing to advanced carrier aggregation, VoLTE and

eventual commercialisation of 5G service:

1. Accelerate LTE-Advanced. The company is rolling out carrier aggregation,

increasing modulation speeds from 64QAM to 256QAM and multi-mode WiFi from

2 layer to 4 layer.

2. Drive the scale of TDD CA commercialisation. The company is launching CA

service with 20+ models supporting TDD downlink in 2015 and 100+ models planned

in 2016 with CA for both uplink and downlink using Qualcomm's MSM 8952, 8976

and 8996. The company believes that prices will drop below US$100 supporting CA

on the downlink and uplink.

3. Drive the transition from voice to IP based service. The company will

introduce higher quality voice and HD video calls plus offer value added services

and SMS over IP.

21 September 2015


4. Push for VoLTE launch. The company launched pre-commercial devices with a

US$150 China Mobile N1 using Qualcomm’s MSM8916 and plans the launch of

the commercial VoLTE service in December 2015. In 2016, China Mobile plans a

large scale network deployment of VoLTE with handsets from low-high end of the

market and to see VoLTE device shipments to pass non-VoLTE. The company

sees VoLTE offering the capability for crystal clear voice calls, HD video calls,

SMS over IP and richer media services.

5. Develop 5G requirements, concept and technologies. China Mobile’s target is to

improve (1) 4G peak data rates by 20x to 20 Gbps, (2) average user data rates by

100x to 1 Gbps, (3) air interface latency from 5ms to 1ms, and (4) reduce energy

efficiency by 100x over 4G. The 5G service will have a group of key technologies

including massive MIMO, ultra-dense network, novel multiple access and a new

network architecture.

6. Actively conduct 5G research. The company will invest in market

services/applications, technology (software defined air interface and massive MIMO),

spectrum combining the main bands below 6 GHz with complimentary bands from 6-

100 GHz and drive toward a unified global standard.

Figure 18: China Mobile driving more devices with carrier aggregation in 2016

Source: China Mobile

■ 4G product development strategy. China Mobile also cited several strategies to

develop high quality multi-mode devices and IoT appliances on its network:

1. Push for scaled development of low cost smartphones. The company sees a

600 mn unit potential for 4G devices in the next two years driven by declining

prices from lower cost chipsets, integrated RF and a multi-mode common PCBA

project. The company’s MSM8916/8908 PCBA project allows for a US$150 5-

mode handset, the China Mobile A1 using a low cost chipset, integrated RF and

common PCBA. The carrier is shipping about 10,000 units/day on its initial 1 mn

unit order, with 700k units shipped since June.

2. Insist on TDD/FDD convergence and multi-mode and multi-band. China

Mobile requires 5 modes and 13 bands including 6 FDD LTD bands and also

suggests that global operators support TD-LTE bands (38, 39, 40 and 41) on all

devices. The converged model supports 200+ operators across 90+ countries.

3. Strengthen device quality control. The company has increased components

quality certification, product acceptance test, production process management

and after launch quality control using a joint China Mobile-Qualcomm test lab and

partnering with Orange in a CMCC-Orange partnership for efficient network

certification.

21 September 2015


4. Develop a variety of IoT devices. The company cited third-party data showing

IoE devices growing from 10 bn to 30-35 bn by 2019. China Mobile has deployed

branded devices for IoT, including set-top box (3 mn units in 2015, +50% YoY),

GPS trackers (600k units, +100% YoY) and a kids watch (3 mn units, +10x YoY).

5. Actively collaborate with global operators. The company will collaborate on

creating a common technical specification for roaming and service, mutual

certification of devices to shorten time to market and quality control costs and a

joint product portfolio and operator branded joint market development.

SK Telecom

SK Telecom’s Way to Beyond LTE-A and 5G Technologies and Services

Jin-Hyo Park, SVP, Network Technology R&D Center

SK Telecom presented its innovation in launching LTE advanced to support higher

bandwidth, drive to upgrade its network to an intelligent cloud network using network

function virtualisation and software defined networking and also present a long-term

roadmap to 5G service commercialisation in 2020.

■ 'The first and the best' on network upgrades. SK Telecom pitches itself as being

the World's First and Best on technology adoption, with Korea's first 4G service in

2011, LTE Advanced in 2013, 3 band LTE-Advanced in 2014 and this year LTE + Wi-

FI aggregation and voice over LTE with data speeds of 300 Mbps on LTE and 867

Mbps over LTE.

■ Mobile data traffic accelerating following its LTE launch. SK Telecom has seen a

12x traffic increase and 21x increase in multimedia since launching LTE. The

company’s 4G data traffic per user is now 3.5 GB/month, up from 1.5 GB/month in

2012 and 1 GB/month for 3G. The company believes that data traffic will increase at a

57% CAGR through 2019 with 80% of the traffic being multimedia data.

■ Industrial requirements growing. The company is creating services for industry

(smart payment, energy management, e-healthcare, connected devices, and smart

home). The company’s platform is focused on developing an advanced network

infrastructure, IT infrastructure (cloud computing) and intelligence (big data analytics

and voice/video recognition.

■ Focus on creating the intelligent network. The key enabling technology includes (1)

network function virtualisation, (2) software defined networking, (3) multi-tenant

managed services, and (4) unified analytics. The company will try to have a pooled

resource of cloud infrastructure, virtualise its network functions and analytics capability

to deliver IoT, device two device, vehicle to X communications and 4G/5G service. SK

Telecom is focused this year on combining LTE with WiFi aggregation (867 Mbps) and

was among the first to launch carrier aggregation.

■ Connectivity for IoT. The carrier is interested in (1) low power wide area networking

in the ISM bands, (2) cellular based Cat-1/Cat-0 and narrow band cellular for IOT, (3)

vehicle to everything to share information from the car, and (4) device to device

services. The company is focused on developing applications for monitoring,

automation, location, health care and connected car services.

■ Media enhancement. The company is upgrading its network to handle high quality

4k/8k video and offer real time live streaming, gigabit access (NG-PON2 fiber at 40

Gbps, NBASE-T 2 Pair UTP at 1 Gbps, Docsis 3.1 coaxial cable at 4 Gbps, G.fast for

copper at 500 Mbps). The company is enhancing its network with super cell

technology with antenna and interference management for spectral efficiency, more

cell splitting and more frequency bands.

SK Telecom driving to

higher categories of Carrier

Aggregation and is working

toward the 2020 launch of

the 5G service

21 September 2015


■ Mobile broadband innovation. The company is advancing its network on four fronts:

(1) carrier aggregation (3 band 40 MHz now commercialised), (2) multi-cell co-

ordination, (3) WiFi aggregation and (4) VoLTE (first commercialisation in 2013 and

now in 25 carriers). It believes that killer services for VoLTE will include (1) group

voice conferences, (2) customised ringing signal with instant messaging, (3) group

video call to up to four people, and (4) in-call switch between voice and video calling.

■ 5G timing and usage cases. SK Telecom expects to demonstrate pre-5G in 2018

and commercialise 5G service in 2020. The company targets LTE improving peak data

rate, spectrum efficiency, mobility, latency, connection density, network energy

efficiency, capacity and higher peak data rates. The company’s architecture would be

1 tier (radio and cloud) rather than 2 tiers in LTE (access+core) and offer

UHD/hologram displays and massive and mission critical IoT. The key services for 5G

include immersive media with hologram displays and mutli-PiP display, virtual

augmented reality, immersive telepresence and hologram communications,

autonomous driving and remote machinery control, remote surgery and a mobile hyper

cloud with gigabit data speeds.

Mobile Ecosystem presentations at the summit

Altek Corporation – Dual cameras for DSLR image

quality and performance in smartphones

Jason Lin, SVP, Altek Corporation

In 1996, Altek started focusing on the digital camera market but entered the smartphone

market three years ago. Altek is a listed Taiwanese company with ASIC and optical

solutions for mobile and medical applications that is now working on implementing dual

camera modules into smartphones.

■ Complete turnkey camera solution provider. Altek provides a complete camera

solution including wearable and camera modules for leading camera makers (Pentax,

Sony, Kodak, Canon, HTC), mobile imaging (Huawei, HTC, Lenovo, ZTE, Sharp), and

medical (Roche, Fujifilm). The company originally made digital cameras but can now

provide a complete end to end turnkey service for imaging including ASIC design,

image processing, camera module development, precision tooling, SMT assembly and

system integration.

■ Commercialising dual camera modules. Altek has enabled about a half dozen dual

cameras in the market using dual camera modules including HTC M8, M9+ and

Butterfly 2, Huawei Honor 6+, and ZTE Axon, with more to come. Altek noted three

common 3D camera module structures including asymmetric with 2MP+8/13/20MP,

symmetric with a short baseline and symmetric with a long base line (both with

8MP+8MP and 13MP+13MP). The company believes 13MP+13MP is the best

configuration and could move up to 20MP+20MP next year.

■ Total solution for the dual camera. Altek’s total depth solution includes a custom

metal frame and a dual camera module that is aligned, calibrated and tested. The

company also has software that can run on Qualcomm’s Application Processor for

instant autofocus, depth engines, IQ tuning and balancing and static/dynamic

correction.

■ Depth engines. The company provides a depth engine with sparse depth map to

have instant autofocus based on how far away the object is to drive the VCM there

instantly and a dense depth map to judge the distance to all the pixels for high quality

effects in stills. The company’s depth map can provide self-recovery adjustments after

the consumer drops the phone.

Altek has shipped its dual

camera solution to several

smartphones and is seeing

vendor interest continue to

grow

21 September 2015


■ Better effects and faster auto focus. The dual camera can claim a wider range of

lighting, full range of subjects and full frame for touch autofocus rather than center only

autofocus, and also offers faster autofocus speed. The dual camera can add a special

effect of making the correct part of the smartphone photograph in focus.

■ New dual camera option with symmetric colour+mono technology. The

company’s dual module has a 13MP colour sensor plus 13MP mono sensor in a

module to create a slimmer module and same quality as a 21MP 1.55 micron camera.

The resolution is high by combining a mono sensor as the base and fusing together

with a color sensor using complex algorithms. The key benefits include (1) low light

equivalent to a 1.55 micron pixel (8 megapixel quality), (2) 2x HDR, (3) 4.3mm slim

module with 1/3” sensor, (4) fast autofocus <200 milliseconds in low light and (5)

effects to emulate the shallow depth of field.

Figure 19: Altek's symmetric dual camera design

Source: Altek

Analogix Semiconductor: SlimPort and USB Type C

Andrew Bouwer, VP, Marketing, Analogix

Analogix is a fabless semiconductor IC supplier that has shipped 1 bn+ display port ICs to

date across smartphones, tablets and notebooks. The company presented solutions for

Display Port and USB Type-C on its SlimPort.

■ Slimport for smartphone connectivity to the TV. The SlimPort connects the

smartphone to the TV display over a USB charging port and is compliant with the

DisplayPort standard and claims better than set-top video quality. Microsoft’s

Continuum feature with the SlimPort will allow a Windows 10 smartphone to be

docked to, and will be viewable on a large screen display. Analogix has shipped over

50 mn enabled mobiles with its SlimPort to date and will offer USB3 over USB-C in

2015. The recent devices from LG, HP, ZTE, Amazon, Lenovo, Asus and Google

Nexus use its SlimPort.

■ USB Type-C with Display Port to replace HDMI. Analogix believes that a USB Type-

C cable with DisplayPort 1.3 will replace HDMI as the way to transport video to a TV

set. The USB Type-C standard is reversible, multi-function and supplies power, data

and video. Management believes that Display Port can surpass HDMI. The HDMI

cable was architected for sending digital video to the AC-powered TV device but is

capped at 60Hz refresh rates. The DisplayPort was produced with a digital AV device

for mobile that is royalty free and now up to the DisplayPort 1.3 specification that can

offer higher resolution up to 8k video and refresh rates.

Analogix is focused on the

USB Type C upgrade cycle

and the additional support

for video out to a large

display

21 September 2015


■ USB Type-C has industry support. USB Type-C was first embraced in Apple’s

Macbook but is also supported by Microsoft and Google for video out with a Display

Port mode over the USB Type-C connector. Apple is dropping its proprietary interface

because it is easier, more available and limits electronic waste (1 bn chargers thrown

out each year).

■ USB Type-C market adoption growing. The USB market is currently 6 bn units and

over time will convert to USB Type-C. The company projects that USB Type-C will

reach 1 bn units from smartphones, tablets and notebooks with one-third supporting

video out and legacy USB still representing 1.5 bn units. The Type-C connector will

also come into TVs in 2016 to replace USB Type-A and VGA. Analogix is focused on

the high-end SlimPort with video out but targets all markets.

■ BOM cost on USB Type-C falling quickly. The BOM cost for USB Type-C is coming

down from five chips to a single chip by year-end and dropping from US$4 to US$2

currently in a two chip solution and US$1 by year-end with a single chip. The company

also has a chip to convert from MIPI to Display Port.

Figure 20: Analogix has reduced the USB Type C BOM cost from US$4 to US$1 since '14

Source: Analogix

Dacuda – 3D camera for smartphones

Peter Weigand, CEO, Dacuda

Dacuda gave a presentation on its software application that can transform 2D photography

towards a 3D image using its software for download from the app store rather than buying

a smartphone with an expensive dual camera module.

■ 3D software cameras. Dacuda’s vision is to improve on 2D photography, noting 1 bn

daily picture uploads in 2D with many benefiting if 3D conversion software is used.

Dacuda has developed a 3D software solution available on the Apple and Google app

stores to create a 3D image in software.

■ Dacuda software. Dacuda replaces hardware with “smart SLAM scan 3D software”

by controlling focus, exposure time, white balance and frame rate. The software can

also create a 3DSelfie for sharing and 3D printing.

Dacuda's software converts

2D photos into a 3D image

21 September 2015


Intrinsyc - Snapdragon development platforms

beyond mobile

Cliff Morton, VP, Client Solutions, Intrinsyc Technologies Corporation

Intrinsyc is a solution partner that develops embedded products using Qualcomm’s

Snapdragon processors across IoT, industrial, home and mobile applications. The

company focused its presentation on how end customers can use its embedded modules

and system solutions to bring wireless and IoT products to market.

■ Background – accelerate mobile product development. Intrinsyc is a product

development company that has worked on 800 customer projects in hardware

development, wireless integration, and new product introduction including embedded

applications using Snapdragon 400, 600 and 800 series. The company is a Qualcomm

licensee building products for embedded and mobile with development platforms,

system on modules, and embedded solutions. The examples of applications it has

developed running on Snapdragon include Smartphones/Tablets, robotics, wearables,

health and fitness, automotive, automation, connected TV, IoT, multiple cameras,

security, digital signage in-flight entertainment and drones.

■ Snapdragon benefits for embedded. Intrinsyc cited benefits with Snapdragon from

(1) strong silicon support for the hardware (CPU, DSP, GPU, ISP), (2) wide array of

application software supported by the silicon (Android, Adreno graphics, OpenCL,

facial processing, augmented reality, (3) best in class performance (CPU, CSP, GPU,

camera, multimedia), (4) thermal and power efficiency, (5) Snapdragon ecosystem

(tools, documentation, development kits and online tools), (6) technology roadmap,

and (7) good price/performance on embedded processors.

Figure 21: Intrinsyc embedded module using the Snapdragon 410 for IoT applications


■ Intrinsyc embedded wireless modules. Intrinsyc has built development platforms for

embedded (Snapdragon 400, 600 and 800 series, mobile (Snapdragon 805, 810 and

820) and automotive (602A auto grade processor). The company has an Open-Q

system-on-module which is a complete embedded computer on a single circuit board.

The Open-Q module for example embeds a Snapdragon 410 processor, 1 GB

DRAM+8 GB NAND, PMIC with audio codec, WiFi+Bluetooth Low Energy, GPS and

connectors in 44x26mm board. Customer software support is also provided for

camera, display, video, sensors, connectivity, power management and processing.

■ Product examples. The company cited several product uses built on with its module

and development kit. (1) Retail analytics: Uses dual cameras and power over

Intrinsyc provides

embedded reference

designs based on

Qualcomm's chipsets

21 September 2015


Ethernet, Snapdragon 805 and data mining software, (2) wearable camera: includes

Snadragon 410, cellular modem and wireless charging with two months to prototype,

(3) stream TV: A glass-less 3D smart TV running Snapdragon 800 with 4k TV support.

Japan Display, Touch Panel Development

Yoshiharu Nakajima, Senior GM, Touch Panel Development, Japan Display

Japan Display is a Japanese TFT display supplier focusing on displays ranging from 1” to

100” with 16% share in small and medium size panels but even higher share at 32% LTPS

share in smartphones, 19% share in auto displays, 58% in digital cameras and 48% in

medical devices.

■ LTPS TFT seeing high growth. The company indicated that the penetration of LTPS

is still rising for high resolution TVs. The LTPS offers high carrier mobility and low

driving power and capability to support a narrow border. The company is now showing

its display technology to enable 2160x3840 4k2k resolution on an 8” tablet with 550

pixels per inch.

■ RGBW pixels for lower power. J-Devices adds a “WhiteMagic” white pixel to reduce

backlight power consumption by 40%. The company also offers local dimming

backlight to reduce power further.

■ IPS (in plane switching) mode. The IPS has a wider viewing angle than standard

displays and is now mainstream. J-Devices now uses a photo alignment process for a

true black appearance for off axis viewing of the display.

■ In cell touch being offered. J-Devices in cell tough integrates the touch to reduce

thickness and improve optical performance. The company’s Pixel Eyes technology

eliminates the separate discrete touch panel. The Tx electrode and Rx electrodes are

integrated in the LCD layers and controlled through an integrated driver IC by LTPS.

■ Host processing for touch with the Qualcomm Snapdragon processor. J-Devices

has changed the processing from a 50 MHz touch IC to the Snapdragon processor for

faster processing of the touch input. The touch feature supports stylus input, single

finger zoom in/out, and angle detection of the finger for more precise touch.

Figure 22: Japan Display In-Cell Touch eliminates the discrete touch module

Source: J-Devices

Japan Display showcased

its in cell touch solutions

21 September 2015


Microsoft

Jeremy Korst, General Manager, Windows Brand and Product Marketing

Microsoft’s discussion focussed on the company’s strategy to create one uniform Windows

platform across Windows 10 and Windows Mobile. The company presented a number of

demos taking advantage of Windows 10's capabilities.

■ Microsoft’s key focus areas. Microsoft’s main focus is around (1) Office: Reinvent

productivity and business processors, (2) Azure: Build an Intelligent Cloud, and (3)

Windows: Create more personal computing (natural interactions, mobile, Cortana

voice assistant, data protection).

■ One Windows Opportunity. The company is looking to create the One Windows

platform across Windows 10, Windows Phone, XBOX and IoT platforms for one

experience, one developer platform and one store.

■ Windows 10 reception building. Microsoft cited that 75mn+ devices are now running on

Windows 10 in 192 countries, 90,000+ unique PC and tablet models in development and

6x more application downloads per device than on a Windows 8 devices.

■ Windows Mobile trying to leverage the broader Windows ecosystem. The

company believes that Universal Windows can help the platform with access to 1 bn

users and a universal app platform and one app store also with integration into mobile

billing platforms.

Figure 23: Microsoft provides an update on Windows 10 adoption

Source: Microsoft

Obi Worldphone

John Sculley, CEO, OBI Mobiles

John Sculley, former Pepsi CEO in the late 70s/80s and Apple CEO in the 1980s is now

the CEO of Obi Mobiles, a Silicon Valley based company started in 2014, aimed at

innovating design for mainstream smartphones in emerging markets and launching two

low cost smartphones this past August. Sculley's presentation focused on trying to capture

opportunities created by a design gap in the industry.

■ Focus on the design gap. Sculley cited that areas technology companies can exploit

design gaps in the industry, including Apple’s push in the 1980s to create the

Macintosh PC for consumers and business users and Uber’s transformation of the taxi

industry, coming into a US$150 mn taxi industry in San Francisco and adding US$500

mn in sales in that market without cannibalising the US$150 mn taxi industry. The

company still cites a design gap at the low-mid-tier of the market not addressed by

Apple, which has 92% of industry profits.

■ Silicon Valley led design. Sculley cited that companies have very small teams with

highly capable designers, citing that Apple had six designers that built the original

Microsoft announced that it

has 75 mn+ devices on

Windows 10 and has seen

6x more app downloads per

user over Windows 8

John Sculley formerly from

Apple is now leading Obi

Mobiles attempt to innovate

with design for smartphones

in emerging markets

21 September 2015


Macintosh and still only has 14 employees with the title of design engineers. Obi

Worldwide has hired the team that developed the Beats team after Apple acquired it

and also Apple’s former head of design Robert Bruner. The company will focus on the

user experience.

■ Obi Worldphone focus on the mid-tier of the market. The company’s focus is to

target the US$150-300 price range still growing at faster rates, leverage a low cost

structure to deliver profitability, and innovate on design from its San Francisco design

center. The company’s new phone features high-end specs including Snapdragon 615

processor, 13/5 MP processor, Dolby 7.1 processor and 16 GB storage.

■ Roll-out into emerging markets. Obi Worldphone is now rolling out products into 14

countries this year (Middle East, North and East Africa and Southeast Asia) and will

eventually reach 70 countries. The company will focus on customers rather than

competition to deliver its approach on an ecosystem around continuity connecting any

type of screen.

SK Hynix: 3D Technology will revolutionise memory

Byoungjoo Lee, VP and Head of NAND Product Planning

SK Hynix presented its memory strategy of offering DRAM, NAND and CMOS image

sensors for the mobile industry.

■ M14 fab starting in 3Q15. The company’s M14 fab will have capacity up to 200k

WPM and for DRAM, NAND and CIS starting in 3Q15.

■ Bit demand rising. Hynix estimates ANND demand increasing from 77 bn GB in 2015

to 240 bn GB in 2019 from 50 bn connected devices, with devices per person rising

from 3.5 today to 6.6 by 2020.

■ 3D NAND meets the core demands for memory. 3D NAND offers 2x reliability, 30%

higher net die per wafer and 1.5x faster performance while maintaining the same pace

of lower cost/GB as it believes 2D NAND is running out of steam lowering cost.

Reliability improves by reducing the capacitance from coupling between neighbouring

cells and lessening bit line and word line interference. Performance improves from 2

milliseconds to <1 milliseconds delay and MLC to 0.6 milliseconds delay. Sequential

write speeds also improves from 2D to 3D from 140 MB/second to 200 MB/second.

Figure 24: Hynix driving 3D NAND for better reliability, performance and bit growth

Source: Hynix

SK Hynix discussed its

migration to the UFS

standard and 3D NAND

21 September 2015


■ 3D NAND moving into its third generation. The company’s first version was

launched in 4Q14, second version this quarter and third version planned by the end of

2015. ITs targets are mobile storage, client SSD and raw NAND in 2015 and

enterprise SSD in 2016.

■ NAND controller upgrades. The company has launched eMMC 5.1 and UFS 2.0 in

2015. In 2016, it plans its 4th generation 3D NAND and will support SATA SSD and

NVMe SSD and UFS2.1. Beyond that, it plans a 5th and 6

th generation supporting the

UFS3.0 standard. The UFS solution available now improves sequential read/write

bandwidth by 2.5x to 750MB/second and random read/write performance 3x to

30KIOPS.

■ DRAM and NAND stacking. The company supports multiple packages including PoP,

eMCP and uMCP joining DRAM and LP DDR 4.

Sony – CMOS Sensor Development

Yuichiro Baba, Senior Manager, Mobile Imaging Solutions

Sony presented on its best in class image sensor technology and some new

enhancements with its pixel technology, high speed interface and sensors to further

improve smartphone picture taking.

■ Technology innovations in the CMOS sensor. Sony discussed its key technology

innovations including (1) micron pixel technology, (2) high speed C-PHY interface

adoption, (3) phase detection AF and (4) RGBW sensor use.

■ Stacked technology with TSMC logic chip and Sony sensor. Sony’s sensor uses a

stacked structure called Exmor RS with the sensor as the upper chip and the lower

chip as the logic chip. The logic chip is manufactured at TSMC and provides the

device's image processing, high speed interface, noise reduction and analog

processing. Sony then assembles the TSMC built logic chip and Sony sensor in-house

in a 3D stacking process.

■ 1 micron pixel technology. The company has introduced 1 micron pixel technology

professing several benefits. (1) Slims the module height from 5.5mm to 5mm in a

16MP module, (2) increases the camera resolution from 16MP to 20 MP by reducing

the pixels from 1.12 micron 16MP to 1 micron 20MP, and (3) offers amazing picture

quality by using deep trench isolation to reduce cross talk and light loss between

different photo diodes.

■ High speed C-PHY interface. Sony is upgrading to a high speed C-PHY interface in

2016 to provide a fast three-lane connection to Qualcomm's Snapdragon 820

processor. The high speed interface supports 1.7x higher speed, 0.55x power vs D-

PHY and lower pin counts.

■ Image plane phase detection AF (PDAF). The company’s phase detection AF

sensor can measure object distance on every frame in a moving object and change

the target from a far to near object to keep images in focus.

■ RGBW sensors in the market. Sony’s RGBW sensor enhances light sensitivity and

claims 2x higher brightness in low light. The sensor can convert RGBW to RGB

without relying on the application processor and the accompanying logic IC can

supress false colours to improve the image.

■ System level collaboration for additional benefits. Sony works with the supply

chain and will focus on improving the high speed interface, adding more pixels,

improving instant response for pictures, lowering system power and long-term will

develop multi-lens applications.

Sony showcased its best in

class CMOS image sensor

technology

21 September 2015


Timex

Thomas Essery, CTO and VP of R&D

Timex presented an evolution of the watch industry and current innovation in the wrist

based wearables and its strategy to move into smart watches.

■ Watch market. Timex cited a 1.2 bn annual units shipped representing US$40 bn

sales with highest growth in China, India and Indonesia with 62% of sales from the top

10 watch makers. Analog watches still have 90% of the value of the market, with also

90% of the volume above US$50 retail price. Within that, the Swiss watch market is

29.2 mn units and over US$20 bn in value. Mechanical watches represent 27% of

volume and 78% of value and smart watches and sports bands are now reaching 25-

30 mn units.

■ New age of wearables. The company cites that there are three wrist based

categories that it targets: (1) sports performance, (2) fitness bands/activity trackers,

and (3) smart watches. The key enablers include low power GPS, high resolution

sunlight readable displays, and mass market fitness applications and websites, low

power MEMs sensors and improved Bluetooth and low power wireless with

connectivity to the smartphone. The key challenges still include battery, waterproofing,

quality of sunlight readable displays and form factor.

■ Wellness challenges—diet. A key early problem for fitness trackers is that they are

not working that well in helping people lose weight—the presenter remarked that you

cannot outrun a bad diet. A 5 mile run equals 4 beers, a 10 mile run equals a quarter

pounder and a marathon equals a weekend of tailgating at football games, so diet

habits also need to come into play to make the wearables truly effective.

Toshiba Corporation: Memory Development Strategy

Keith Ryu, Senior Manager, Memory Division, Toshiba

Toshiba presented on its flash memory offerings and new introductions including support

for the higher performance UFS memory interface and 3D NAND, with longer-term target

to move toward a magnetic RAM technology.

■ Mobile migrating toward UFS. Memory is moving to from eMMC's parallel interface

to UFS's serial interface for higher performance. The UFS interface accelerates

speeds over eMMC from 400 Mbps to 5.8 Gbps over two lanes. The company

believes the standard will move down to mid-range phones next year but expects

longevity for eMMC in low-end phones and industrial applications.

■ Toshiba flash memory support. The company has a whole line of products from low

density to high density. For the low cost smartphones paired with Qualcomm's

Snapdragon 400 series (8909 and 8916), the company recommends 8-16 GB of

NAND and 1 GB of DRAM in an eMCP form factor. For mid-high-end smartphones,

the company has eMMC configurations of 16-64 GB of NAND. For flagship phones,

the company suggests its UFS controller supporting 32-64 GB of NAND.

■ Shrinks getting more difficult, driving the company's push to 3D NAND. The

company’s half pitch shrink has fallen from 13% from 2000-2010 to 8% per year from

2010-2015 and believes it will get even more difficult. The 3D NAND creates vertical

BICS flash memory cells that can trap a charge and replacing the floating gate. The

company introduced the first 48-layer 3D flash memory and now has released its new

device reaching 256 Gb (32 GB) for sampling this month. The company believes 3D

NAND will improve write speed, increase reliability and endurance and enable higher

density in a small size. Its Fab 2 in Yokkaichi will be completed in 1H16.

Timex views the watch

market as a US$40 bn

opportunity, with 90% of the

market still from the analog

market and US$20 bn of the

value now from Swiss

watches

Toshiba is migrating to 3D

NAND and longer-term

targeting stacked NAND

using TSVs and eventually

magnetic RAM

21 September 2015


■ NAND with TSV (through silicon via) technology. Toshiba is developing lower

power and higher performance technology with TSV technology for low latency, high

bandwidth and high IOPS/watt for SSDs. The company has achieved a 16-die stacked

NAND using TSVs which can enable I/O data rate of 1 Gbps and 50% power reduction

of read, write and I/O transfers. Storage capacity for the prototype in a 16 stack

configuration is 256 GB.

■ STT-MRAM has long-term potential to replace DRAM. The company is developing

STT-MRAM which it believes can bring non-volatility, no battery back-up required, less

leakage, smaller die size or larger cache and more radiation resistant. The product will

be available in the next few years.

Figure 25: Toshiba shifting its NAND portfolio from 2D to its 3D BICS NAND Flash Cell

Source: Toshiba

21 September 2015


Companies Mentioned (Price as of 18-Sep-2015)

ARM Holdings (ARM.L, 960.5p) Altek (3059.TW, NT$24.65) Amazon com Inc. (AMZN.OQ, $538.87) Analogic (ALOG.OQ, $86.02) Apple Inc (AAPL.OQ, $113.92) Asustek (2357.TW, NT$288.0) Avago Technologies Ltd. (AVGO.OQ, $130.61) Canon (7751.T, ¥3,600) China Mobile Limited (0941.HK, HK$92.15) Dialog Semiconductor (DLGS.DE, €46.28) Fairchild Semiconductor International Inc. (FCS.OQ, $14.14) Fujifilm Holdings (4901.T, ¥4,720) Google, Inc. (GOOGL.OQ, $671.67) HTC Corp (2498.TW, NT$61.7) Hewlett Packard (HPQ.N, $27.57) HiSilicon (Unlisted) Intrinsyc Tech (ITC.TO, C$0.76) Japan Display (6740.T, ¥384) LG Electronics Inc (066570.KS, W47,200) Lenovo Group Ltd (0992.HK, HK$7.2) MediaTek Inc. (2454.TW, NT$278.5) Microsoft Corporation (MSFT.OQ, $44.25) Murata Manufacturing (6981.T, ¥16,645) NXP Semiconductors N.V. (NXPI.OQ, $91.02) ON Semiconductor Corp. (ON.OQ, $10.17) OmniVision Tech (OVTI.OQ, $25.26) Orange (ORAN.PA, €14.3) PENTAX (7750.T^A08, ¥757) PENTAX (7750.T^A08, ¥757) QUALCOMM Inc. (QCOM.OQ, $54.98) Roche (ROG.VX, SFr258.8) SK Hynix Inc. (000660.KS, W35,750) SK Telecom (017670.KS, W257,000) Samsung Electronics (005930.KS, W1,190,000) Sharp (6753.T, ¥164) Skyworks Solutns (SWKS.OQ, $90.74) Solomon Systech (2878.HK, HK$0.315) Sony (6758.T, ¥3,115) Sunny Optical Technology Group Co., Limited (2382.HK, HK$15.66) Taiwan Semiconductor Manufacturing (2330.TW, NT$131.5) Toshiba (6502.T, ¥316) Truly International (0732.HK, HK$1.99) ZTE Corporation (0763.HK, HK$17.88)

Disclosure Appendix

Important Global Disclosures

I, Randy Abrams, CFA, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts’ stock rating are defined as follows:

Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark*over the next 12 months.

Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months.

Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.

*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractiv e, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin Amer ican and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 12 -month rolling dividend yield. An Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform where an ETR le ss than or equal to 5%. A Neutral may be assigned where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks. Prior to 18 May 2015, ETR ranges for Outperform and Underperform ratings did not overlap with Neutral thresholds between 15% and 7.5%, which was in operation from 7 July 2011.

21 September 2015


Restricted (R) : In certain circumstances, Credit Suisse policy and/or applicable law and regulations preclude certain types of communications, including an investment recommendation, during the course of Credit Suisse's engagement in an investment banking transaction and in certain other circumstances.

Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward.

Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation:

Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months.

Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months.

Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months.

*An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%)

Outperform/Buy* 56% (30% banking clients)

Neutral/Hold* 29% (38% banking clients)

Underperform/Sell* 13% (31% banking clients)

Restricted 2%

*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdings, and other individual factors.

Credit Suisse’s policy is to update research reports as it deems appropriate, based on developments with the subject company, the sector or the market that may have a material impact on the research views or opinions stated herein.

Credit Suisse's policy is only to publish investment research that is impartial, independent, clear, fair and not misleading. For more detail please refer to Credit Suisse's Policies for Managing Conflicts of Interest in connection with Investment Research: http://www.csfb.com/research-and-analytics/disclaimer/managing_conflicts_disclaimer.html

Credit Suisse does not provide any tax advice. Any statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purposes of avoiding any penalties.

See the Companies Mentioned section for full company names

The subject company (2330.TW, 005930.KS, AAPL.OQ, 2454.TW, 000660.KS, ON.OQ, NXPI.OQ, AVGO.OQ, MSFT.OQ, GOOGL.OQ, ORAN.PA, 017670.KS, 066570.KS, 2498.TW, 6753.T, 0763.HK, 0992.HK, ROG.VX, HPQ.N, 2357.TW, 6502.T) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse.

Credit Suisse provided investment banking services to the subject company (AAPL.OQ, NXPI.OQ, AVGO.OQ, MSFT.OQ, GOOGL.OQ, 0992.HK, HPQ.N) within the past 12 months.

Credit Suisse provided non-investment banking services to the subject company (ROG.VX) within the past 12 months

Credit Suisse has managed or co-managed a public offering of securities for the subject company (AAPL.OQ, NXPI.OQ, 0992.HK) within the past 12 months.

Credit Suisse has received investment banking related compensation from the subject company (AAPL.OQ, NXPI.OQ, AVGO.OQ, MSFT.OQ, GOOGL.OQ, 0992.HK, HPQ.N) within the past 12 months

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (QCOM.OQ, 005930.KS, AAPL.OQ, 2454.TW, 000660.KS, ON.OQ, FCS.OQ, 2382.HK, 6740.T, NXPI.OQ, AVGO.OQ, 6981.T, MSFT.OQ, GOOGL.OQ, ORAN.PA, 017670.KS, 066570.KS, 2498.TW, 6753.T, 0992.HK, HPQ.N, AMZN.OQ, 2357.TW, 6502.T) within the next 3 months.

Credit Suisse has received compensation for products and services other than investment banking services from the subject company (ROG.VX) within the past 12 months

As of the date of this report, Credit Suisse makes a market in the following subject companies (QCOM.OQ, AAPL.OQ, ON.OQ, 6758.T, MSFT.OQ, GOOGL.OQ, 6753.T, HPQ.N, AMZN.OQ, 6502.T).

As of the end of the preceding month, Credit Suisse beneficially own 1% or more of a class of common equity securities of (2330.TW, 2454.TW, DLGS.DE, ORAN.PA, 2498.TW, 0763.HK, 2357.TW).

Credit Suisse has a material conflict of interest with the subject company (2330.TW) . Credit Suisse is acting as the financial advisor to Motech Industries Inc in relation to the share subscription by Taiwan Semiconductor Manufacturing Co., Ltd.

21 September 2015


Credit Suisse has a material conflict of interest with the subject company (005930.KS) . Credit Suisse is acting as exclusive financial advisor to Samsung Electronics and Samsung Fine Chemicals in relation to the proposed sale of their ownership stakes in the semiconductor wafer joint ventures with SunEdison, SMP Ltd and MEMC Korea Company Ltd, to SunEdison.

Credit Suisse has a material conflict of interest with the subject company (NXPI.OQ) . Credit Suisse is acting as financial adviser to NXP Semiconductors NV (NXPI) in relation to its proposed merger with Freescale Semiconductor Ltd (FSL).

Credit Suisse has a material conflict of interest with the subject company (AVGO.OQ) . Credit Suisse is acting as financial advisor to Avago Technologies Ltd (AVGN) on its announced potential acquisition of Broadcom Corp. (BRCM).

Credit Suisse has a material conflict of interest with the subject company (6753.T) . Credit Suisse is acting as a sole financial advisor to Canadian Solar regarding an acquisition of Recurrent Energy, LLC from its parent company, Sharp Corporation.

Credit Suisse has a material conflict of interest with the subject company (0992.HK) . Credit Suisse is acting as financial advisor to Lenovo Group Limited for its proposed acquisition of Motorola Mobility Group from Google.

Credit Suisse has a material conflict of interest with the subject company (6502.T) . Credit Suisse Securities (USA) LLC is acting as an advisor to Landis+Gyr on the announced acquisition by Toshiba Corporation. This acquisition remains subject to regulatory approvals and other customary closing conditions.

As of the date of this report, an analyst involved in the preparation of this report has the following material conflict of interest with the subject company (AAPL.OQ). A Credit Suisse analyst involved in the preparation of this report has a long position in the common stock of AAPL.

For other important disclosures concerning companies featured in this report, including price charts, please visit the website at https://rave.credit-suisse.com/disclosures or call +1 (877) 291-2683.

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Restrictions on certain Canadian securities are indicated by the following abbreviations: NVS--Non-Voting shares; RVS--Restricted Voting Shares; SVS--Subordinate Voting Shares.

Individuals receiving this report from a Canadian investment dealer that is not affiliated with Credit Suisse should be advised that this report may not contain regulatory disclosures the non-affiliated Canadian investment dealer would be required to make if this were its own report.

For Credit Suisse Securities (Canada), Inc.'s policies and procedures regarding the dissemination of equity research, please visit https://www.credit-suisse.com/sites/disclaimers-ib/en/canada-research-policy.html.

The following disclosed European company/ies have estimates that comply with IFRS: (ORAN.PA).

An analyst involved in the preparation of this report received third party benefits in connection with this research report from the subject company (HPQ.N)

Credit Suisse has acted as lead manager or syndicate member in a public offering of securities for the subject company (AAPL.OQ, 000660.KS, NXPI.OQ, MSFT.OQ, GOOGL.OQ, 017670.KS, 0992.HK, HPQ.N) within the past 3 years.

As of the date of this report, Credit Suisse acts as a market maker or liquidity provider in the equities securities that are the subject of this report.

Principal is not guaranteed in the case of equities because equity prices are variable.

Commission is the commission rate or the amount agreed with a customer when setting up an account or at any time after that.

Taiwanese Disclosures: This research report is for reference only. Investors should carefully consider their own investment risk. Investment results are the responsibility of the individual investor. Reports may not be reprinted without permission of CS. Reports written by Taiwan based analysts on non-Taiwan listed companies are not considered recommendations to buy or sell securities under Taiwan Stock Exchange Operational Regulations Governing Securities Firms Recommending Trades in Securities to Customers.

To the extent this is a report authored in whole or in part by a non-U.S. analyst and is made available in the U.S., the following are important disclosures regarding any non-U.S. analyst contributors: The non-U.S. research analysts listed below (if any) are not registered/qualified as research analysts with FINRA. The non-U.S. research analysts listed below may not be associated persons of CSSU and therefore may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Credit Suisse AG, Taipei Securities Branch ........................................................................................................... Randy Abrams, CFA ; Haas Liu

For Credit Suisse disclosure information on other companies mentioned in this report, please visit the website at https://rave.credit-suisse.com/disclosures or call +1 (877) 291-2683.

21 September 2015


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Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can be eroded due to changes in redemption amounts. Care is required when investing in such instruments. When you purchase non-listed Japanese fixed income securities (Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, Japanese corporate bonds) from CS as a seller, you will be requested to pay the purchase price only.

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