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Round-up Report
December 2004
Nanotech to start 8 inch fab in Changzhou (Dec 27, 2004)
Nanotech Corporation (Changzhou,Jiangsu) recently announced that the company will invest US$400 million to set up Nake Microelectronics in Changzhou Hi-Tech Industrial Development Zone to provide 8 inch wafer fabrication in Changzhou, Jiangsu province.
The newly established company purchased second-hand equipments from Intel Corporation. Meanwhile, Intel will transfer its 0.35 micro and o.25 micro CMOS process technology and provide training for Nake’s staff. Under the agreement between Intel and Nanotech, Intel will provide equipments to ensure production capacity to15 thousand wafer pieces per month.
Products from Nake will include IC card, telecom IC, driver IC, computer and peripherals IC, PLD and PLD-FPGA. Manufacturing is expected to start in 2006.
Haier to achieve 100 bn RMB sales revenue in 2004 (Dec 27, 2004)
Haier Group (Qingdao, Shandong) expects to manage US$12bn sales revenue in 2004 which is about 100 bn RMB, disclosed by Mianmian Yang, president of the company, during the company conference on its 20 years old birthday.
As China’s top electronics company, Haier focused itself on promoting its own brandy worldwide.
The company’s export business may hit US$1 bn this year as well as its overseas manufacturing and sales.
Skyworth changes top management (Dec 27, 2004)
Skyworth Digital Holdings (Shenzhen, Guangdong) has reorganized its top management after its chairman Hongsheng Huang was charged by Hong Kong's anti-graft body for misappropriating funds.
The company said that Dianpu Wang would replace Huang as chief executive officer. Wang was former chairman of Shenzhen Electronics Group and is still director of China Electronics Association. Zizheng Liang will be the new director of finance to replace Jianzhong Zheng.
Skyworth is the third largest TV maker in China after Changhong (Mianyang, Sichuan) and TCL (Huizhou, Guangdong).
China’s top 100 electronics firms(Dec 20, 2004)
China’s top 100 electronics firms have managed US$74.8bn sales revenue in the first 10 months of 2004, up 25% YOY, according to the report of the Ministry of Information Industry.
Haier (Qingdao, Shangdong) topped No.1 with US$10.5bn revenue; TCL (Huizhou, Guangdong) was listed as No. 2 generating US$4.2bn sales revenue and the third place was Lenovo (Beijing) with US$3.9 bn sales revenue. SVA (Shanghai) and Huawei (Shenzhen, Guangdong) Technology were listed as the fourth and fifth places with revenues of US$3.4bn and US$2.8bn respectively.
Among the top 100 firms, there are 14 companies with over 50% YOY growth including Founder (Beijng), Meide (Shunde, Guangdong), ZTE Corp (Shenzhen, Guangdong), Huaqiang (Shenzhen, Guangdong) and others.
The MII expects that the total revenue of the top 100 will grow 25% YOY to US$90.5bn in 2004 while the total profit can reach US$3.2bn, up 15% YOY.
China's foreign trade surpasses 1 trillion US dollars (Dec 20, 2004)
During the first 11 months of 2004, China's total foreign trade volume bypassed 1 trillion US dollars, announced by the General Administration of Customs.
From January to November, China's total value of imports and exports reached US$1.038 trillion, up 36.5% YOY. Imports and exports both surpassed US$500 bn, with a trade surplus of US$20.84 bn.
The development of China’s foreign trade has accelerated the development of China’s economy, brought China with more than US54.15tn foreign exchange reserves and many job opportunities.
Huawei doubles its overseas sales in 2004(Dec 20, 2004)
Huawei Technology (Shenzhen, Guangdong) recently announced that the company will double its overseas sales in 2004 to US$2 bn, accounting for 40% of its total revenue, based on Xinhua report.
Huawei’s overseas sales revenue has doubled yearly from US$50million in 1999 to US$1.05bn in 2003. The company expects to manage a total of US$4.8bn sales revenue in 2004.
At present, Huawei has done business in 77 countries including 14 developed countries such as Germany, France, the United Kingdom, Portugal, the United States and Canada.
Lenovo acquires IBM’s PC division(Dec 13, 2004)
China’s leading PC maker Lenovo recently acquired IBM’s personal computer division, making itself the third largest PC business in the world.
Stephen M. Ward, Jr., currently IBM senior vice president and general manager of IBM's Personal Systems Group, will serve as the chief executive officer of Lenovo following completion of the transaction. Yuanqing Yang, currently vice chairman, president and chief executive officer of Lenovo, will serve as the chairman of Lenovo post-transactio.
For this acquisition, Lenovo spent a total of US$1.25bn including cash and stock, as a result, IBM holds 18.9% of Lenovo Group. Additionally, Lenovo will assume approximately US$500 million of net balance sheet liabilities from IBM.
Huawei gets 200 million euro 3G contract(Dec 13, 2004)
Huawei Technoloies(Shenzhen, Guangdong) has been selected by Dutch mobile operator Telfort to deliver and install a nationwide UMTS network in the Netherlands including R4 based core network and UTRAN solution. The Telfort UMTS project in Netherlands is the first UMTS 3G contract Huawei has ever won from Europe with value of 200 million euro.
"We are glad to have Huawei as a strategic partner for our developments in mobile data and UMTS," said Ton van de Stegge, CEO of Telfort, during the signing ceremony. "Telfort's strategy is to challenge the established norms of the mobile industry and this contract, which is the first of its kind in Europe, is exactly in line with that. We are confident that Huawei will help us to develop innovative and cost effective data solutions for our customers and look forward to a prosperous relationship with them."
This is the fifth commercial UMTS network constructed by Huawei in the world. The previous 4 networks are respectively Etisalat in United Arab Emirates, SUNDAY in Hong Kong, Emtel in Mauritius and TM in Malaysia. Whereas the 5 operators in cooperation with Huawei didn't apply any part of Huawei equipments in their own 2G network, this is quite a proof that 3G network is not necessarily dependent on of previous 2G network. Thus operators have more choices of better equipment suppliers.
China Unicom partners with Motorola (Dec 13, 2004)
China Unicom has selected Motorola Inc. for a major Phase 3.2 CDMA2000 1X wireless network expansion. The contract value is US$344 million. Equipment for the new CDMA2000 1X network has been deployed and is expected to be fully operational by the end of 2004.
These contracts cover expansion of the operator's CDMA2000 1X networks in 11 provinces including Beijing, Fujian, Gansu, Guangdong, Guangxi, Hebei, Jiangsu, Jiangxi, Jilin, Shanxi and Xinjiang.
Motorola has been the largest mobile wireless system supplier to China Unicom since 1994 when it began supplying GSM solutions, and has played an integral role in China Unicom's migration to advanced CDMA technology. China Unicom today has over 110 million subscribers on its CDMA and GSM networks nationwide.
IC conference and CSIA annual meeting in Wuxi (Dec 6, 2004)
Sponsored by China Semiconductor Industry Association (CSIA) and Jiangsu Semiconductor Industry Association, the 2nd China IC industry development conference & the 7th Annual Meeting of IC Branch of CSIA, 2004 were held in Wuxi, Jiangsu Province, gathering over 600 participants.
“China has a fast growth in packaging sector in 2004,” said Xiekang Yu, director of CSIA, “Up to now, China has over 180 semiconductor packaging and testing facilities. 80% of them were located in the Yangzi River Delta.”
Speakers from CSIA, Hynix, Huahong NEC, Applied Materials, Universal Instruments (HK), BOC Edwards, ASML, JAZZ Semiconductor, IBM, TSMC, Hejiang Technology, FSI International, ASYST, Credence, CSMC Technology (Wuxi, Jiangsu), Jiangyin Changdian (Jiangyin, Jiangsu) introduced the latest technology development, market trends, challenge and solutions on IC manufacturing sectors.
China’s telecommunication business hits US$57.9bn (Dec 6, 2004)
China’s overall telecommunication business reached sales revenue of US$57.9bn in the first 10 months, according to the Ministry of Information Industry (MII). The data showed 12.2% YOY growth, which is close to 13%, the YOY growth of the first 6 months this year.
The MII announced that China has 636 million phone users as a whole, including 311 million fixed-line subscribers and 325 million mobile phone users. From Jan to Oct, China has increased 103.03 million phone users with 47.95million fixed-line users and 55.08 million .
China's hi-tech foreign trade to US$259.3 in Jan-Oct(Dec 6, 2004)
The Ministry of Commerce (MOC) of China recently announced that the foreign trade volume of China’s hi-tech products totalled US$259.3 bn in the first ten months, up 43.9% YOY. The MOC also expect the volume will reach US$300 bn at the end of 2004.
Based on MOC, the export grew 51.9% to US$128.34bn and the import grew 37% to US$130.96bn.Exported products are computer and telecom products while imports focused on electronics, computer and computer integration products.
The Yangzi River Delta and the Pearl River Delta accounted for 80% of the total exports.
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