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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

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To: Ramsey Su who started this subject	5/28/2001 8:46:59 PM
From: mightylakers	Read Replies (3) of 196720

Handset Makers Claim Defect in Qualcomm Chip The core chip supplied by Qualcomm of the United States for mobile handsets was found to have defects, delaying the release of the nation's third generation (3G) handsets, according to claims being made by several local firms. Domestic manufacturers of 3G handsets are expected to lose several billion won because of the delay. SK Telecom and LG Telecom announced Monday that the two notified the nation's mobile handset manufacturers that the they would not purchase handsets with Qualcomm's chip, coded as MSM-5105, again. The two companies explained that the 5105 chip does not support convolution cover code which is essential to high speed data communications. As a result, the nations' handset manufacturers that have designed new products based on the 5105 chip will be scrapping their current production plans. The domestic manufacturers reportedly spent W1.5 billion to W3 billion for the designing of the handsets and have spent US$200,000 to US$300,000 for the licensing fee for the 5105 chip. An owner of an equipment manufacturing company said a majority of Korean handset makers have been moving ahead with their production plans, building around the 5105 chip. The owner also said that since the discovery of the defect, the design of handsets must redone and his company had to postpone for three months the debut of its new line of handsets. Korean manufacturers of the handsets have taken action to replace the chip with the MSN-5100 chip, but Qualcomm doesn't plan to roll out the chip until October, so domestic manufacturers will only be able to begin production of 3G handsets well into next year. Qualcom said the 5105 is for low-priced handsets and its specifications are not detailed enough. Because of the lack of details, the company says it has found some problems the chip has in high-speed data communication, but that the chip itself is not defective. Qualcomm also said the company does not understand why the manufacturers have belatedly raising the issue as they have been aware of the sort of problem previously. Qualcomm however did not offer a detailed explanation of how it is going to deal with the licensing, or how the company will deal with the handsets that have already been sold. (Baek Kang-young, young100@chosun.com) chosun.com

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