Edge AI Takes Center Stage at the World's Largest Industrial Computer Exhibition

Welcome to Knowing Finance, hosted by Chen Yen Chun. Today, we're diving into the world's largest industrial computer exhibition, where edge AI is driving a wave of upgrades. Stay tuned to discover all the key trends. Our special guest today is Yang Yu-Fei, a senior reporter from CaiXun.

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Embedded World: The Industrial Computer Exhibition in Nuremberg

While NVIDIA's GTC event hosted by Jensen Huang grabs headlines, it's important to note that before GTC, the world's largest industrial computer exhibition, Embedded World, took place in Nuremberg, Germany. Our team, led by Yu-Fei, attended the event to bring you firsthand insights into the latest developments in the industrial computer sector.

What is Embedded World?

Embedded World is a highly specialized exhibition focused on practical applications. It is not an event for casual observers, but rather a gathering place for industry professionals who come to discuss specifications, place orders, and test product modules directly.

• The exhibition is in its 23rd year.
• It attracted over 1,200 exhibitors from 46 countries.
• Taiwan had a record-breaking 148 participating companies.

Taiwan is a global powerhouse in industrial computers. The industrial computer sector requires high levels of customization, a need that Taiwanese manufacturers are well-suited to address due to their flexibility. Numerous Taiwanese industrial computer companies attended the event as a group. Nuremberg is a hub for industries such as manufacturing, high-precision electronics, and medical technology.

Taiwanese companies participating in the exhibition primarily fell into three categories:

1. IC design and silicon intellectual property (IP)
2. Industrial computer manufacturers
3. Memory-related businesses

Key Highlights from the Exhibition

Unlike other exhibitions that focus on self-promotion, Embedded World showcased collaborative efforts.

Rise of Edge Computing

The first key highlight was the advancement of edge computing in mid-range devices, particularly those related to visual applications. This was a prominent theme across many exhibitors' booths. With the rise of DeepSeek, the industry is moving from cloud-based AI to edge computing. This trend is evident in manufacturing and healthcare applications.

• Healthcare: AI-powered image recognition in ultrasound technology is becoming more prevalent.
• Manufacturing: AI enhances automation, especially in factories, improving efficiency and precision in tasks such as defect detection. Advantech's general manager mentioned that the demand for AI-driven factory and medical automation is booming. AI significantly increases speed and efficiency compared to manual methods.
• Labor shortages: The need for AI is driven by labor shortages and the increasing relocation of factories to the US, where labor costs are high.

Low Power Consumption

The second trend observed at the exhibition was a focus on low power consumption among chip manufacturers.

• Exhibitors emphasized the low heat output of their chips even when running demanding tasks such as processing data from multiple cameras with a small AI acceleration card.
• Energy efficiency is crucial due to high electricity costs, especially in Europe, and the need to operate in harsh environments where cooling systems may be unreliable.

The emphasis on low power consumption is opening doors for Arm-based architectures, which have historically been less prominent in this sector. Companies like MediaTek are actively promoting their Arm-based solutions. Qualcomm is also entering the market, as x86 architectures are less suited for edge computing due to heat generation and power consumption.

Collaboration and Ecosystems

A third notable trend was the emphasis on collaboration and partnerships.

• Instead of solely showcasing their own products, companies like NXP displayed products developed in collaboration with their partners. Some chip manufacturers directed attendees to their suppliers' booths to find their products.
• Companies such as Winstron, AsRock, Axiomtek, and Advantech are working with Qualcomm.
• This collaborative approach is essential in the highly fragmented and customized industrial computer sector. Taiwanese manufacturers are well-positioned to integrate into these ecosystems.

The Impact of US-China Trade Tensions

With the ongoing US-China trade tensions and the increasing emphasis on non-Chinese supply chains, it's important to understand the presence of Chinese manufacturers in this market.

• Chinese companies: More than 140 Chinese companies participated in the exhibition.
• Response: While some had larger, independent booths, others participated through smaller joint displays.
• Engagement: It was observed that there weren't as many interested attendees engaging with their booths.

"No China" Supply Chains: There's been a growing trend among industrial computer manufacturers to seek "No China" or "de-sinicized" supply chains, especially in response to potential tariff increases on Chinese products.

This trend presents opportunities for Taiwanese manufacturers, who can offer cost-competitive alternatives while avoiding the impact of tariffs. Taiwanese companies are increasingly seen as the best choice for companies seeking non-Chinese supply chain partners.

Notable Taiwanese Companies

Yu-Fei highlighted several Taiwanese companies that stood out at the exhibition.

Innodisk

Innodisk, a well-known Taiwanese industrial-grade storage and DRAM brand, showcased their award-winning industrial-grade camera and long-distance image transmission solution. Their solution addresses the limitations of the traditional MIPI interface, which is limited to short distances, with limited signal strength, when expanding the transmission range.

• Extended transmission: Innodisk's technology extends the cable length to over two meters while maintaining signal strength.
• Flexible installation: The flexible cable design allows for installation in various locations, such as large AMR.
• AI Integration: Innodisk also saw the AI rise and integrated camera and software solutions for their modules.

Litemax

Litemax, specializing in the field of displays and rugged computing, shared that they were conducting business with Israeli military clients. They also highlighted their railway traffic monitoring system, which uses Intel and NVIDIA GPUs to detect foreign objects.

• Low Latency and High Precision: Their system requires high calculation capabilities for low-latency threat detection and notification systems.
• Scalability: They offer computing power from 10 TOPS to hundreds of TOPS to meet different use-case scenarios.

ITRI (Industrial Technology Research Institute)

ITRI has developed technology that allows a single chip to run ten AI models.

• AI-powered Chip Design: Combines AI technology with Electronic Design Automation (EDA) tools to optimize chip designs.
• Hardware/Software Integration: Supports various chips, combining the design with hardware integration for client applications.
• Cost Effective: Customers are able to apply various processing methods to develop chips that are cost effective.

Interesting Applications Seen at the Exhibition

Yu-Fei also shared some interesting real-world applications that she saw at the exhibition.

• Stair-Climbing Wheelchairs: Similar to smart vacuum cleaners, these wheelchairs can detect and navigate stairs safely.
• Robotic Arm Item Inspection: A robotic arm with advanced vision capabilities inspects products on a conveyor belt with precision and human-like cooperation.
• AI Crane Game for Picking Items: AI recognition helps the crane discriminate and retrieve designated products from disorganized piles.

Overall Impressions

Yu-Fei's overall impression was that Embedded World is a practical exhibition that showcases real-world applications. It focuses on products and technologies that are currently in use, not just futuristic concepts.

Responding to Audience Comments

We would also like to respond to comments on our previous episode regarding TSMC's investment in the US. Some viewers expressed concerns about the potential risks of this investment. However, we believe that TSMC's fundamentals remain strong.

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