Worldwide revenue for 5G-network infrastructure would nearly double to US$4.2 billion next year from US$2.2 billion this year, Gartner Inc said in a report on Thursday last week.
While revenue in segments including 2G, 3G, LTE and 4G are expected to decline, overall revenue in wireless infrastructure would reach US$35.97 billion next year, slightly increasing from US$35.92 billion this year, the US-based research firm said.
Several nations, including South Korea, the US, the UK, Switzerland and Finland, have already started offering 5G services in major cities, and Gartner estimated that 5G rollout would accelerate by next year, as communications service providers (CSP) in Canada, France, Germany, Hong Kong, Spain, Sweden, Qatar and the United Arab Emirates have announced plans to accelerate 5G network deployment.
“For 5G deployments in 2019, CSPs are using non-standalone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio [NR] equipment can be rolled out alongside existing 4G core network infrastructure,” Gartner senior research director Sylvain Fabre said in the report.
It forecast that investments in 5G NR network infrastructure would account for 6 percent of overall revenue for CPSs’ wireless infrastructure this year and climb to 12 percent next year.
While the individual consumer market remains the largest segment driving 5G growth, CSPs would increasingly target enterprise clients, as 5G networks are expected to expand the mobile ecosystem to cover new industries such as smart factories and autonomous transportation, while not forgetting sectors such as healthcare, agriculture and retail, the report said.
Moreover, equipment vendors have viewed private networks for industrial users as a market segment with significant potential, it said.
Despite equipment vendors, regulators and standards setters making preparations for 5G, nationwide coverage would not happen as quickly as for past generations of wireless infrastructure, Fabre said.
“To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer by upgrading 4G infrastructure around 5G areas of coverage,” Fabre said. “This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hot spots and areas of high population density.”
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has approved a capital budget of US$31.28 billion for production expansion to meet long-term development needs during the artificial intelligence (AI) boom. The company’s board meeting yesterday approved the capital appropriation plan for purposes such as the installation of advanced technology capacity and fab construction, the world’s largest contract chipmaker said in a statement. At an earnings conference last month, TSMC forecast that its capital expenditure for this year would be at the higher end of the US$52 billion to US$56 billion range it forecast in January in response to robust demand for 5G, AI and
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
RSS