Taiwan's AsusTek has released the R2H, which features the Intel ULV Celeron M 900MHz processor, 802.11b/g and optional Bluetooth connectivity.

Chipset and UMPC makers come together to push the industry forward. R&D focuses on saving power and developing new designs.

The ultramobile PC (UMPC) industry is poised for growth, with shipments likely to reach 7.8 million units by 2011 based on projections by market research firm In-Stat. The product is starting to be regarded as a threat to the equally burgeoning tablet PC industry.

The smart mobile device is also expected to supplant PDAs and PDA phones in the near future. UMPCs will gradually eat into the PDA segment beginning this year, according to the Taiwan Research Institute.

Wireless Internet applications are expected to mainly accelerate growth. From the manufacturing side, the product line continues to gain the backing of chipset and CPU giants, which are providing the required technologies to boost product development and manufacture.

Terminal product makers in Taiwan and mainland China, where the industry remains young, are engaging the market mainly by focusing on managing production cost and product price. Makers in both supply markets see the high product price as one major growth hurdle, and are addressing this by lowering their manufacturing costs.

In addition to pricing, the high technology threshold is seen as another factor that could slow down market take off. Due to the technology requirements, only a few companies are currently active in mainland China and Taiwan.

Taiwan makers, which number less than 10, are nonetheless veterans in the production of laptop and tablet PCs. The three active UMPC makers from mainland China—including Founder Group, Hanwang Technology Co. Ltd and Beijing Peace East Technology Development Co. Ltd—are specialists in various IT products. These makers are adopting newly released power-saving processors and OS such as Windows Vista for their UMPCs. The supplier base is expected to rise, particularly in H2 2007, aided by the support of chipset makers and accelerating requirement of maintaining today's mobile lifestyles. In Taiwan, new entrants in 2007 include Yahsin and First International Corp (FIC).

The expanding supply base, with the stable supply and costs of raw materials and components, will fuel production further in 2007.

	The T700 from mainland China's Hanwang Technology comes with a 7in TFT-LCD screen and embedded VIA C&M 1GHz nano processor.

IT giants Microsoft, Samsung and Sony spearheaded the release of UMPCs in H1 2006, followed by Taiwan's AsusTek Computer Inc. and mainland China's Founder. CPU makers followed suit by introducing innovative products.

VIA Technologies Inc., known for its low-power x86 processors, has released its tiny C7-M processor, which is targeted at the mobile and ultramobile market.

The RoHS-compliant C7-M features VIA's Enhanced PowerSaver and TwinTurbo technologies that aim to provide users with up to 20 percent longer battery life than comparable systems.

VIA will also release another UMPC chipset in 2007.

To grab a bigger share of the ultramobile market, AMD released a new processor intended for UMPC makers. The Geode LX 900 processor supports 667MHz clock speed and up to 2.6W power consumption.

Intel will also launch its x86 processor code-named Steeley in late 2007 or early 2008, which is designed for UMPCs. The model emphasizes power-saving features.

To further accelerate market growth, many companies are reducing production costs to consequently lower their product prices to at most $900 per unit. The lower costs will allow makers to later introduce smaller models at 5.6in screens or less.

Some companies offer Linux OS to lower down software cost. Some makers use CCFL-backlit LCD monitors instead of LED backlights to save on hardware costs.

One major roadblock in pushing up sales of UMPCs is the high price. A highly integrated UMPC typically fetches more than $1,000.

Mainstream models that come with 7in LCD screens are priced from $700 to $800 per unit.
Industry analysts believe that UMPC prices will probably sell for $500 to $700 in early 2008, when lower-priced, low power-consuming processors start crowding the market.

	The CE260 from Taiwan's FIC features a 1.8in HDD and 5.5hr to 6hr operating time.

Next to UMPC's high price, another major hurdle that the industry has to overcome is the UMPC's low battery life. To resolve this, UMPC makers' R&D teams incorporate the latest power-saving processors.

Some makers also integrate LED backlit LCDs into their products, as these take up less power and are more lightweight than CCFL-backlit monitors.

Another trend is the integration of low power-consuming solid-state drives (SSD) to fully address the need for more battery life.

Taiwan-based Amtek System Co. Ltd focuses on power management for its UMPCs. The company positions its UMPCs to compete with PDAs, GPS devices and high-end portable media players.
The company's UMPCs are claimed to support 5.5hr to 6hr of battery life.

Besides making smaller and lighter models, AsusTek's UMPCs scheduled for release in H2 2007 will also feature longer battery lives through the use of the latest Intel chipsets.

In terms of design, makers are introducing sliding keyboards and smaller screens. First-generation UMPCs were offered mostly without keyboards. Many models come with touchscreens, which integrate virtual keyboard to enable computing.

The growing number of new UMPCs with sliding keyboards resemble mini laptops and mostly have 7in LCD screens. Buyers can expect UMPCs with 4.5in to 5in screens in the coming months.

With the trend leaning toward keyboard integration, Frank Hsieh, sales manager at Amtek, said that the company will eventually add a keyboard to its products.

FIC was scheduled to release its UMPC in mid-2007. Leveraging its expertise in laptop R&D and production, its UMPC resembles a mini laptop, complete with a keyboard, card reader, DVI and 7in display. To address weight and portability issues, FIC packs its UMPCs with 1.8in hard disk drives (HDD).

FIC's David Lien, director for its product planning and management department, said that UMPCs below 5.6in may compete with PDAs and PDA phones. Lien added that 5in to 7in displays are appropriate for UMPCs.

The company's CE260 embeds a VIA C7-M ULV 1GHz CPU and runs on either Linux or Windows XP Home Basic. It has a 7in screen that supports 800x480-pixel resolution (WVGA), 1.8in HDD and a battery that extends up to 6hr. It uses 400MHz/533MHz DDR2 and VIA VX700 single chipset. It supports Bluetooth and 802.11b/g.

Measuring 230x172x28.7mm, the CE260 has DVI-I, two USB 2.0 ports, DC-in, headphone jack/line-out, line-in and two 1.5W speakers. Its optional features include a DVB-T tuner, built-in Web camera, GPS module and UMTS connectivity.

FIC will also release a 7in model featuring a convertible keyboard similar to those in tablet PCs. This model scheduled for launch in Q4 2007.

	The H9 from mainland China's Beijing Peace comes with a built-in GPS navigator.

Amtek, for instance, plans to support HSDPA and WiMAX in its upcoming products. FIC provides an expansion module in card type for integrating a VoIP phone, DVB-T tuner, PC camera, or GPS and UMTS modules.

UMPCs from Amtek support Wi-Fi and Bluetooth technologies to enable Web browsing and entertainment applications. The company's UMPCs are intended for the consumer market, as well as for business, industrial logistics and in-car applications.

Amtek is scheduled to release 4.8in to 5.6in models in H2 2007. It uses touch panels to enable virtual input interface.

Amtek offers the T770, which is very much like a PDA and is suitable for business travelers and students. It features 802.11b/g and Bluetooth connectivity. It has a slate-type 7in WVGA screen, VIA C7M 1.2GHz processor, DDR2 module, 2.5in HDD and 4-wire resistive touchscreen.

The model supports video-in port for a 1.3MP CMOS camera, USB, high-definition audio codec, two 1W speakers, and headphone and microphone 3.5mm jacks. It measures 226.5x146.4x26.5mm and weighs 850g.

Amtek has 50 members in its R&D team. This team is subgrouped to specifically handle ID, hardware, mechanical and software designs.

FIC and AsusTek also employ tens of engineers assigned for the product line.

AsusTek is adding Windows Vista to its upcoming products. In 2007, the company's product development plans are focusing on penetrating the business and in-car application segments.

The company's R2H features an Intel ULV Celeron M 900MHz processor and runs on either Windows XP Tablet PC or Vista. The model supports 802.11b/g and optional Bluetooth 2.0+EDR. It embeds a DDR2 667MHz module and 1.8in HDD available in 20GB, 30GB, 40GB or 60GB capacity. Ithas a 7in active-matrix WVGA LCD screen, Secure Digital (SD) card slot and fingerprint scanner.

The R2H also comes with an external foldable USB keyboard, external DVD dual player and GPS navigation software. It measures 234x133x28mm and weighs 830g.

Beijing-based Hanwang Technology Co. Ltd emphasizes value-added features for UMPCs, in particular GPS and proprietary software. The company has an R&D group composed of more than 60 engineers. In 2007, the company will put heavy emphasis on UMPCs and tablet PCs.

Hanwang Technology's T700 runs on Windows XP Tablet PC Edition. It is packed with a 40G HDD and 512MB RAM. It features the VIA C7M 1GHz processor and a 7in WVGA screen.

The T700 comes with built-in 802.11b/g and Bluetooth modules, and is bundled with a digital pen. It measures 228x146x25.1mm and weighs 850g, including a built-in 3-cell 2,400mAh battery.

Beijing Peace East Technology Development Co. Ltd's H9 is claimed to be the world's first Linux-based UMPC. It features Intel's PXA270 520MHz processor, 64MB ROM and 128MB SDRAM, and 20G HDD. It supports GPS, Wi-Fi and GPRS/CDMA.

The 7in touchscreen display renders video at 800x480-pixel resolution. Its interfaces include a PCMCIA card slot, USB port, earphone jack, SD card slot and power socket. It supports AC97 codec audio with its built-in speaker. It is powered by a 4,000mAh Li-ion battery. It measures 205x120x19mm and weighs 500g.

	The T770 from Taiwan's Amtek is suitable for the business and education verticals.

Technically considered as a high-end product, UMPCs are mostly shipped to developed regions such as Europe, the United States and Japan.

Amtek started shipping its UMPCs in October 2006. Its major export markets include Europe, the United States and Japan, accounting for 40 percent, 25 percent and 30 percent of shipments, respectively. The company's factory is located in Shanghai, mainland China.

Amtek plans to increase its domestic shipment share to 2 percent in 2007. With a monthly capacity of 5,000 UMPCs, the company ships 1,000 units to 3,000 units per month. It projects to release a total of 50,000 units in 2007.

FIC produces its UMPCs in its Suzhou factory in Jiangsu province, mainland China. The company's clients are located in Europe, the United States, Japan and mainland China. Its products target the business computing segment, and are shipped under OEM and ODM terms.

AsusTek launched its first UMPC in Q3 2006. In H2 2006, the company shipped 20,000 units to 30,000 units. In 2007, it aims to ship a total of 50,000 units to 60,000 units, doubling H2 2006 figures. The company concentrates on own-brand manufacturing (OBM).

The company ships about 95 percent of its products overseas. Europe takes up about 90 percent of its output. The rest goesto the United States and the Asia-Pacific, including New Zealand, Australia, mainland China and Hong Kong.

Beijing Peace, which was established in 1995, started developing UMPCs in 2006. It was scheduled to release model H9 in May 2007. It attends CeBIT to explore the overseas market. Beijing Peace includes Europe, the United States and Southeast Asia as its target export markets.

The company runs an ISO 9001-registered factory located in Shenzhen, Guangdong province. Aside from UMPCs, the company also manufactures smart phones, in-car phones, VoIP phones and digital photo frames.

Established in 1993, mainland China's Hanwang Technology specializes in the R&D and production of diverse pattern-recognition technologies and products, such as drawing tablets and biometric devices, in mainland China. It released its first UMPC in November 2006.

Hanwang Technology currently focuses on the domestic market, but plans to explore the overseas market soon. Toward this year-end, Hanwang Technology attends international trade shows such as CeBIT.

The company produced about 200 units per month in H1 2007. It projects its average output will reach 500 units per month in H2 2007.