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Technology Stocks : ASX - Chip Packaging and Testing

ASX 17.64

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Jan 9 9:30 AM EST

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To: tech101 who wrote (50)	3/12/2004 4:07:37 PM
From: tech101	Read Replies (1) of 58

Phone makers angry over Qualcomm shortages, says report Silicon Strategies 03/12/2004, 2:00 PM ET LONDON -- Mobile phone handset makers in South Korea complained on Wednesday (March 10, 2004) about a lack of code division multiple access (CDMA) baseband chips, according to a report in the Korea Times. The companies said Qualcomm Inc. was only offering to fulfil 70 to 80 percent of orders because of a lack of supply, the report claimed. Qualcomm is the world's largest fabless chip vendor, but because it does not control its own manufacturing it is dependent on foundries which in many cases are now running at maximum capacity. For smaller Korean cell phone makers Qualcomm is only providing half the requested numbers of chips and advising of lead times extending to over 15 weeks, the report said. Because South Korea adopted a Qualcomm pioneered CDMA standard many years ago many mobile phone makers feel locked into Qualcomm and unable to complain for fear of some form of commercial retribution, the report said. It added that Korea's parliament data showed last year Korean firms have paid over 1.5 trillion won (about US$1.27 billion) in royalties to Qualcomm since 1995. The article could be found here when this story was first posted. siliconstrategies.com

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