Founded in 1997, the Company evolved from being an internet traffic management ("ITM") solution provider to a semiconductor-focused company. The Company has created a conglomeration of technology products to include NAND flash memory packaging, TFT LCD assembly, semiconductor packaging and testing specialists, as well as a total solution provider for memory applications for home appliances, semiconductor and TFT-LCD application products.
The Company first entered the semiconductor industry in 2006 with the acquisition of Phoenix Semiconductor Telecommunication (Suzhou), Ltd. ("PSTS"), a semiconductor manufacturer with established relationships with Samsung Electronics. PSTS was a spin-off company of Samsung Electronics and now is a dedicated provider of contracted products for Samsung Electronics and other vendors.
The Company also went into new markets in May 2007 with the acquisition of Bluecomm Co., Ltd. ("Bluecomm"). With customers like Pizza Hut Korea, The Company stepped into the Customer Relationship Management sector. Bluecomm is a Korean company engaged in the business of CRM solution and consulting, call center operation, and database marketing. It also provides total solutions for call center outsourcing and Home Service Center hosting. Bluecomm commenced its CRM related business in October 2005 and in June 2006 entered into an agreement with PizzaHut Korea to provide HSC and DBM operation services.
On August 2007, the Company acquired a semiconductor / display manufacturing equipment producer in Korea according to its strategic acquisition plan. Phoenix Digital Tech Co., Ltd, ("PDT"), ever since its foundation in 1992, has been developing Hi-tech related manufacturing facilities and has special expertise in four areas: Flat Panel Display (FPD) division, Semiconductor division, Surface Mount Technology (SMT) & Automated Optical Inspection (AOI) division, and Factory Automation (FA) division. It has been maintaining its business relationship with worldwide corporations like Samsung Electronics, especially in connection with Samsung Electronics' LCD production and Samsung SDI's PDP production.
The Company has selected the semiconductor as primary target markets and plans to expand its interest in the semiconductor and its related business over the years to help boost sales and secure growth within the Company. The Company's acquisition of several semiconductor manufacturing and packaging plants continues to bring the Company into the mainstream of the industry and will fuel the increased sales in the coming years. The Company will continue to strive towards a marked place in the semiconductor and flash memory packaging fields with multiple acquisitions of firms related to that business sector. These purchases have been coordinated with our key investors and market partners to help expand the Company's marketable service offerings and product lines.
BUSINESS TRENDS
Semiconductor - According to Gartner, world's leading information technology researcher, the semiconductor market is poised to record another year of modest growth. In the short term, although inventory levels are improving, the outlook for growth in end-market semiconductor demand is weakening, especially in the key PC and cellular phone markets. Semiconductor supply-side market conditions remain controlled, with vendors lacking the business confidence to invest aggressively, confirmed by the slowdown in capital spending expected in 2007. The exception is in the commodity memory space, where volatility remains a feature of the dynamic random-access memory (DRAM) and NAND flash memory markets. According to iSuppli, an expert research company in the electronics industry, with improved demand expected for the second-half of the year coupled to a tight supply situation, NAND flash revenue growth is forecasted to the 10 to 15 percent range, up from the previous prediction of flat growth. One of CinTel's subsidiaries, PSTS, has strong contracts with industry leaders that will ensure to meet the expected market demand. One of the PSTS's current focal products is NAND flash memory.
CRM / DBM - The changes in markets and consumer lifestyle are having a powerful impact on customer behavior. The overarching result is that consumer are putting greater demands on firms in terms of high value products and services provided at the right place at the right time. As the changes drive the marketplace to become relationship-based, the only way to maintain market share is to realign the companies' business strategy and become customer centric. Thus, customer relationship management has become strategically important in positioning a company in today's market. CRM solution, Data Base Management, and telemarketing are all fast-growing businesses in the Korea market. Bluecomm has special expertise in DBM, HSC hosting, and telemarketing business.
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Display - According to the Quarterly TFT LCD Supply/Demand and Capital Spending Report, TFT LCD equipment spending will drop 38% to $7.6 billion in 2007, but the market is forecast to recover in 2008 to $8.8 billion and continue to grow another 12.1% in 2009. With panel inventories at record low levels in notebook PCs and LCD monitors, supply has tightened, so prices have stabilized and even increased in a number of cases. With supply expected to remain tight through 2008, panel suppliers are expected to place purchase orders for new equipment in the second half of 2007 creating an improved outlook for equipment suppliers. PDT is mainly producing PDP, LCD, and semiconductor manufacturing equipments that can meet high-technology need for fine movement control.
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