Asia Briefs
Samsung to Invest $28.34 Billion in Its Key Units
South Korea's Samsung Group said Monday that it plans to invest a total
of 32 trillion won ($28.34 billion) by 2005 in the conglomerate's key seven
businesses, including memory chips and flat screen and thin film transistor
liquid crystal display, or TFT-LCD, computer monitors. Of the total,
Samsung Group plans to invest 20 trillion won in semiconductors and five
trillion won in TFT-LCDs to strengthen the conglomerate's competitiveness
it these operations and to increase production, the conglomerate said.
Samsung Group will also invest in such business areas as monitors, code
division multiple access, or CDMA, handsets, digital TVs, equipment
related to the International Mobile Telecommunications for 2000, or
IMT-2000, and printers, it said. "Through such investment plans, Samsung
Group hopes to maintain its leading position in the world market in these
business areas," the conglomerate said in a press release.
Hyundai Electronics Signs Deal with Audiovox
South Korea's Hyundai Electronics Industries Co. said it has signed an
agreement to export six million code division multiple access, or CDMA,
handsets to cellular-phone maker Audiovox Corp. of the U.S. for the next
two years. The total value of the export will reach $1.2 billion, one of the
largest single exports of handsets by a South Korean company, Hyundai
Electronics said. Hyundai Electronics said it expects the deal with
Hauppauge, N.Y-based Audiovox to expand its market share of handsets
in the U.S. to about 16% this year from last year's 7%. Hyundai
Electronics is a unit of South Korea's Hyundai Group.
PhilWeb.Com in Investment Talks with Yahoo!
PhilWeb.Com Inc., a Philippine Internet service provider, said it is in talks
with Yahoo! Inc. for a possible investment agreement. "There are
discussions between Yahoo and PhilWeb.Com, but no agreements have
been reached as of today (Monday)," said PhilWeb.Com in a disclosure to
the stock exchange. PhilWeb.Com shares rose sharply last week on talk
that it is negotiating with American International Group Inc. and Yahoo! for
a possible joint venture. Last month, stockholders of PhilWeb.Com,
formerly loss-making mining firm South Seas Natural Resources Inc.,
approved the transformation of the company into an Internet concern.
Chip Makers to Increase Investment by 58%
South Korea's six major semiconductor makers are expected to increase
capital investment and investment in research and development, or R&D,
by 58% over last year to $4.15 billion this year, the Ministry of
Commerce, Industry and Energy said Monday. This year, the companies,
including Samsung Electronics Co. and Hyundai Electronics Industries Co.,
are expected to spend more than half of their investment in improving
existing production facilities, the ministry said. Investment in existing
facilities is expected to reach $2.86 billion this year, up 102% from last
year, the ministry said. R&D investment is expected to rise 25% this year
to $530 million, the ministry added. However, investment in new projects
is expected to fall 4% from last year to $760 million this year.
Ericsson to Expand Mobile Phone Production
Ericsson Mobile Communications Sdn. Bhd., the Malaysian unit of
Swedish telecommunications company Ericsson Telecomunicacoes SA,
said it plans to invest 100 million ringgit ($26.3 million) this year to expand
its mobile phone production plant. "With the further expansion, it will
enable Ericsson to boost its production capability," Ericsson Mobile
Managing Director Mats Lindskog said in a statement. The expansion will
allow the plant to produce 5 million to 7 million mobile phones a year, Mr.
Linskog said, adding that 95% of production is aimed for the export
market. The plant has produced more than 4 million units of mobile phones
since it began production in 1997. So far, Ericsson has invested 250 million
ringgit to set up the production plant.
General Motors Japan Denies Rumors of Deal
General Motors Japan, a unit of General Motors Corp. of the U.S., said
Monday it is studying various collaborative projects with its three Japanese
auto partners -- including the possibility of sharing car designs and
development systems -- but denied that a final agreement has been
reached. "As the discussions are ongoing, it would be premature and
speculative to discuss the specifics of any collaborative projects," said
Masaaki Gotsubo, a spokesman for GM Japan. GM has capital tie-ups
with Isuzu Motors Ltd., a truck maker, as well as minicar makers Fuji
Heavy Industries Ltd. and Suzuki Motor Corp. A leading Japanese daily
newspaper said Sunday that GM and its partners have reached a final
agreement to share car designs and development systems and that
collaboration among the four auto makers could lead to joint development
of a world car in the future. |
