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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: foundation who wrote (17914)	1/9/2002 8:28:36 AM
From: John Carragher	Read Replies (1) \| Respond to of 196654

Qualcomm May Shift Some Chipmaking to China From U.S., Taiwan By Michael Forsythe Beijing, Jan. 9 (Bloomberg) -- Qualcomm Inc., whose patented technology is used in about 100 million mobile phones, will start making chips for handsets in China, the world's largest cellular phone market by subscribers. San Diego-based Qualcomm employs outside manufacturers in the U.S. and Taiwan to make chips with its technology which helps carry more calls over available frequencies than the rival European technology more common in China. The company may shift some production to plants in China owned by companies such as Motorola Inc., Irwin Jacobs, Qualcomm's chief executive, said. ``We are talking with possible companies who will set up manufacturing capability here in China,'' Jacobs told reporters in Beijing. ``When that's available, we will certainly make use of it.'' Expanding sales in China, with 140 million mobile-phone users, may help boost Qualcomm's earnings. In fiscal 2001, the company's profit, excluding acquisition costs and other items, fell 1.8 percent to $788.9 million. Qualcomm's China operations will be profitable in the next fiscal year, Jacobs said. Shares in the company have fallen 34 percent in the past year, while the Nasdaq Composite Index has declined 16 percent. Unicom China United Telecommunications Corp., the country's second- largest wireless operator, yesterday began operating a nationwide phone network using Qualcomm's patented code division multiple access technology, or CDMA. Qualcomm earns royalties from handset makers and network equipment manufacturers as well as revenue from sales of its chipsets. The Unicom network has a capacity for 15.2 million users, which is set to expand to 50 million by 2003. China's government plans to establish the country as a major semiconductor manufacturer. Shougang Group Corp., a steelmaker, said it will sign a $800 million agreement with a foreign chipmaker to produce semiconductors in China, according to the state-run China Daily newspaper.