LGE teams up with three Chinese firms for R&D in CDMA handset
koreaherald.co.kr
--Courtesy of nz1 on TMF.-- Cooters
LG Electronics (LGE) said yesterday that it has signed a contract to set up a joint venture with three Chinese companies to develop CDMA (code division multiple access) handsets.
The three Chinese firms are Langchao Electronic Information Industry Group Corp., Cherry S/W and Yan Tai Development Zone Distribution Center.
Under the contract, the joint venture named Langchao LG Digital Mobile Communication Technology R&D Center Co., Ltd. will carry out R&D (research and development) into CDMA handsets.
To be located at Sandong Province, the venture will be capitalized at $2 million. LGE invested in a 49-percent stake, with the remainder of the investment made by the three Chinese partners. LGE and Langchao will hold the venture's managerial rights.
LGE plans for the joint venture to begin operation as a R&D center, and would start investing in facilities for production and marketing from the second half of this year after obtaining approval to produce CDMA handsets from the Chinese government.
Through the joint venture, the Korean company is stepping-up its efforts to tap into the burgeoning Chinese CDMA market by establishing a corporate image as a high-quality manufacturer. LGE plans to produce folder-style models equipped with large LCD (liquefied crystal display) and containing UIM (User Identity Module) cards, as well as applying WAP (wireless application protocol) functions and offering other handsets catering to the needs of local Chinese people.
The company will also carry out R&D activities to diversify middle- and low-priced models and make preparations for the upcoming IS-95C and third-generation telecom markets.
Langchao, the largest partner in the joint venture, is a state-invested company located in Sandong Province and has 16 subsidiaries, and 22 other companies in which it has made equity investments. With 3,000 employees, the company is one of China's 20 largest electronics makers and the second largest pager manufacturer.
In addition, LGE announced that it has signed a contract to set up a joint venture named Beijing Capital-LG Mobile Telecommunications with Capitel Group, a subsidiary of the leading Chinese telecom company, PTIC (China National Posts & Tele communications Industry Corporation).
The joint venture, to be located in Beijing and capitalized at $13 million, will be in involved with R&D, production, sales and A/S of all CDMA systems including IS-95A/1, 95C(1X), IMT-2000 and PCS.
When the establishment of its production facilities is completed within the first half of this year, the company will be able to produce 2.5 million lines of CDMA systems, officials said.
They expected that through the partnership, LGE will consolidate its position in the Chinese CDMA market as a major equipment maker and stand a better chance of winning a system supplier license at a Chinese CDMA bidding scheduled to be held in the first half of this month.
(hsshine@koreaherald.co.kr)
2001.03.08 |
