A week in Japan tech
Hardware
- NEC Corp. has developed a commercially viable small fuel cell that can be used in notebook computers. The fuel cell will enable 40 consecutive hours of operation, about 10 times longer than using lithium-ion batteries, the current mainstream batteries for notebook computers. Japanese, US and South Korean companies have been competing fiercely with each other to develop small cells for use in personal computers and mobile phones in recent years. The latest move means NEC is having a lead over its rivals in terms of commercializing such cells. The fact that current lithium-ion batteries for portable devices do not last long has been a major barrier in linking these devices to data networks. If the devices are used to process data-heavy moving images, they tend to run out of power quickly. The NEC fuel cell should resolve this problem.
- Niigata Seimitsu Co., the University of Tsukuba and Toyota Industries Corp. have jointly developed a chip that can double the resolution of video displays. Its data-processing logic is modeled on the workings of neural networks. The partners believe that the chip will find applications in small LCD (liquid crystal display) televisions and in displays for mobile phones.
- Fujitsu Ltd.'s said it received "a significant order" from US telecommunications operator Verizon Communications Inc. for a next-generation fiber-optic system. The order from Verizon, for which Fujitsu declined to provide a value, is for equipment compatible with ultrahigh-speed SONET (synchronous optical network) systems, which can send large amounts of data, including sound and video.
- Hitachi Ltd. believes its purchase of IBM’s hard-disk drive business will help it turn out new consumer electronics goods faster than rivals, with the first products coming as early as this year, an official said. Hitachi closed the $2.05 billion deal with IBM on Dec. 31. Producing the new line of products, applying cutting-edge hard-drive technologies, has become one of Hitachi's most important projects. Yoshihiro Moribe, a senior manager at Hitachi Global Storage Technologies Inc.'s domestic unit, would not delve into details about new product plans, but he said speed would be an important advantage.
Information Technology
- NTT Data said it had successfully linked thousands of computers on the internet to finish a task in 132 days that would take a single computer 611 years. It marked Japan's first test of "grid computing" - where linked computers share small parts of mammoth calculations. In the test that ended in April, the company linked 12,206 random computer users found through the Internet who were willing to download a program onto their systems that would share the computing burden of two scientific projects. One sought to identify repeated patterns in the human genome for use in a study of diseases' relationship to genes, while the other analyzed the light-transmitting ability of different materials for a future light-based computer. NTT Data, a subsidiary of telecommunications giant NTT, said its grid computing service would be priced at about ¥2 to ¥3 million ($16,950 to $25,400) for every 100 computers needed. The company would install its system by linking clients' computers on a higher-speed Intranet.
Life Sciences
- Hitachi Software Engineering Co. will soon begin marketing DNA chips, which the company claims can determine the functions of mouse genes. The new chip, which was developed jointly with DNA Chip Research Inc., a start-up firm based in Yokohama, deals with some 30,000 mouse genes. Hitachi Software contributed its know-how on computerized gene sequencing, while DNA Chip Research offered its proprietary technology to paste genes on the substrates of the chips. The company's DNA chip-related sales are projected to jump 10-fold within three years to ¥2 billion ($16.7 million). The domestic market for DNA chips is estimated to be worth ¥4 billion ($33.4 million) this year and rise to ¥20 billion ($167.1 million) in three years.
Mobile / Wireless
- The Japanese Mobile Computing Promotion Consortium, an industrial group, hopes to create universal standards for wireless LAN connectivity by the end of 2004. The organization will address such issues as roaming rules that allow connections between LAN operators, equipment specifications that enable any operator to provide a stable connection, the need for a highly secure encryption system, and a function that automatically turns on a terminal when it enters a wireless LAN service area. A promotion committee within the consortium was established by 28 firms including Fujitsu Ltd., NEC Corp., Toshiba Corp., Hitachi Ltd., NTT DoCoMo Inc. and KDDI Corp. Testing and data collection will begin within the year at connection points nationwide. The use of wireless LAN system has not spread due in part to the fact that cell phones are highly advanced in Japan, the consortium hopes that with its efforts things will change.
Software
- Oracle Corp. Japan said it raised its parent net-profit outlook for the year ended in May to ¥14.0 billion ($118.6 million) from its previous outlook for ¥10.9 billion ($91 million) on stronger-than-expected sales. The subsidiary of US company Oracle Corp. also boosted its parent sales outlook to ¥86.3 billion ($720.8 million) from ¥81.5 billion ($680.8 million) as revenue from its software-products and consulting-service businesses exceeded initial expectations.
Telecommunications
- KDDI Corp. had completely severed its capital ties with Singapore Telecommunications Ltd. The Japanese telecommunications firm sold its entire 1.2% stake in Singapore Telecom, with market insiders estimating that the some 220 million shares sold for around ¥22.5 billion ($187.9 million). KDDI had formed a capital tie-up with the Singapore firm in 1999 to bolster its international data communications operations. The plan was for KDDI and Singapore Telecom to set up a joint venture in the international data communications services business but this never materialized as the market soured, leaving only the capital arrangement.
- NTT Corp. has developed a device capable of recognizing practically every Japanese name that it "hears." NTT aims to use the technology to launch a computerized telephone directory service in two years. It also hopes to sell it through NTT Data Corp. to companies that want to provide automated response services at unmanned call centers. NTT has found that the equipment can recognize all of the 180,000 family names and 140,000 given names registered in its telephone number database. Its previous voice recognition technology was able to recognize only 3,000 to 5,000 varieties of both family and given names, making it hard to use the technology for interactive voice response services. The newly developed technology can correctly distinguish even rare names and those close to other names in sound, by taking cues from information on how to read the first Chinese character that comprises the name in question.
A week in Korea tech
e-Commerce
- One-price shops, which sell a variety of goods at a uniform price, are expanding their presence in cyberspace. Online shopping service Lotte.com said that it launched an all W9,000 ($7.5) shopping section on its web page. The online retailer is offering diverse household items - such as upscale cooking utensils, hair dryers, electric toothbrushes, coffee makers and radio cassettes - at heavily discounted prices of W9,000 ($7.5) each. Another internet-based shopping service Nate.com opened a similarly themed "1,000 Won House," selling a range of products at a mere W1,000 ($0.84).
Media, Entertainment and Gaming
- NCsoft Corp. said that it would launch promotions of its forthcoming title "Lineage II" together with Samsung Electronics, NVIDIA, Intel and Microsoft. The company said the joint promotion is aimed at spurring the domestic PC and parts markets, which have long been suffering a slump. Lineage, which has enjoyed five years of unmatched success, is NCsoft's flagship product with more than 100,000 concurrent users in Korea alone. The company is pinning its hopes for Lineage II on the revolutionary 3D graphics used in the game. It is the first in a new generation of online games with the look and feel of a motion picture. Lineage II's 3D graphics are expected to require more computing power than most users have now, something that NCsoft and computer makers here expect will help revive the demand for hardware upgrades. Under the joint promotion program Samsung, NVIDIA, Intel and Microsoft will come together to release a "Lineage II PC" with hardware specifications that are customized for the new online game.
- Next-generation games based on Hollywood blockbuster films are expected to heat up the Korean gaming market. For example, Korean game distributor Waycos Inc. launched the sale of a computer game version spin-off from the movie "The Hulk." The big-screen release of the movie based on Marvel Comic's "The Incredible Hulk" has been used as the basis for the new game developed by Vivendi Universal Games. A version for Microsoft X-Box is slated for release in Korea early next month while the version for Sony PlayStation will enter the market within the second half of this year. Similar movie-game promotional campaigns are expected for upcoming movie releases.
Mobile / Wireless
- IntroMobile Co., a mobile solutions developer, said the majority of Korean mobile phone users are carrying high-powered handsets that can support the transmission of multimedia content over the CDMA-based 3G mobile network but the problem lies with the mobile platforms. SMS has long been available in Korea, but Korean users are yet to fully enjoy the benefits of MMS because of SK Telecom, KTF and LG Telecom whom despite offering the transmission of pictures and video clips, nevertheless do not follow the widely accepted international standards for MMS.
Software
- Nextway, a Korean MP3 player maker, has developed its own "encoding technology," which enables users to transform analog sound tracks into MP3 files, in close cooperation with Telechips, its business partner. This move is needed to solidify its position in the fiercely competitive audio device market
Telecommunications
- Hanaro Telecom Inc. faces a serous obstacle in its bid to position itself in the fiercely competitive broadband market in Korea, as its board delayed its decision on the ambitious plan to attract foreign funds of $450 million. Hanaro's board failed to approve the foreign fund plan, something that has been touted as a key factor for the company's bid to remain independent and secure its market position. Hanaro is competing with KT Corp., the country's largest broadband carrier in a market that is now struggling to keep up positive growth as a slew of saturation signs are surfacing after the number of broadband users recently surpassed the 11 million mark.
- AIG’s chairman said that the group of investors led by the insurance giant will not increase its offer in the beleaguered broadband operator Hanaro Telecom. The AIG-lead deal would include the purchase of US$450 million in newly issued shares of the high speed Internet service provider and syndicated loans.
A week in China tech
e-Commerce
- Online auction giant eBay's takeover of Chinese Internet trading operator EachNet signalled a new era of growth for the mainland's e-commerce portals, said a Beijing-based information technology consultancy. The deal also marks how much the leading Chinese portals have shed the stigma of the dotcom fallout and developed sustainable business strategies, according to BDA China managing director Duncan Clark. The state-run China Internet Network Information Centre estimates more than 59 million mainland consumers are online, making China the world's second-largest Internet population behind the United States. Research firm International Data Corp. predicts that e-commerce in China will become a $16 billion market by 2005.
Mobile / Wireless
- State-owned mobile phone operator China United Telecommunications, the parent of China Unicom, is facing its first large senior management reshuffle with the departure of its chairman. The firm's top management was told by the State Council that Yang Xian Zu, 63, would retire and be replaced by his deputy, Wang Jianzhou, 54. It is not known when the change will take place. Under mainland regulations, government officials are supposed to retire between 60 and 65. A company source said Mr Yang would take up a new post with the Standing Committee of the Chinese People's Political Consultative Conference, where he is a member of the economic committee.
- A boom in China's mobile data market has sent wireless-content providers rushing to deliver new products that would ring in more business from mainland cellular subscribers. With more than 200 million mobile phone users in China, demand has grown rapidly for wireless data applications - from text greetings, jokes, alerts, games, logos and ring tones to chat forums, picture messages, screensavers and video clips. Estimates from Pyramid Research found SMS revenues in China last year amounted to $750 million and are expected to reach $16 billion by 2007. Such potential led Chinadotcom to acquire Newpalm Information Technology, an SMS software-platform developer and applications provider in April. That move followed earlier efforts by mainland e-commerce portal operators such as Sohu and Sina to branch out into the SMS business.
Software
- Digital China Holdings'president and chief executive, Guo Wei, warned investors and analysts that the bad days associated with SARS would continue for two more quarters. Digital China blamed SARS for hurting its business across the board: its system integration business was severely affected, and some customers had suspended operations opting to wait out the virus while others delayed payments to the group due to SARS-related setbacks. This had resulted in higher provisions for accounts receivable and doubtful debts. Although Digital China was expected to take some kind of SARS hit, it announced two pieces of news that took analysts by surprise. First, its earnings for the year ended March 31st were below expectations, rising by just 5.7% to $181.2 million - lower than the $196.1 million analysts had expected. It also said profit would continue to decline for the six months between April and September due to anticipated higher provisions for bad customer debt and inventory write-downs.
- The Beijing city government hopes to increase its use of the license-free Linux operating system, an official said, as it prepares to open bidding for several major information-technology contracts. The comments underscore the challenge that Linux, which offers more opportunities for domestic companies than Microsoft Corp.'s dominant Windows software, is posing to the US software maker in China. Beijing is gearing up for another round of bidding for computer and software systems in the second half of this year, said Zhu Yan, director-general of the Beijing Municipal Office of Information, which promotes the use of information technology. No one company owns Linux, but many of Microsoft's competitors are promoting Linux, an operating system that is developed and maintained by a group of volunteer programmers who make it available free of charge, as an alternative to Windows. Mr. Zhu said the government didn't have specific targets for increasing its use of Linux.
A week in Taiwan tech
Mobile / Wireless
- Chunghwa Telecom planned to launch third-generation (3G) services early next year, company chairman Ho Chen-Tan said. The company aimed to offer high value-added services and attract more subscribers through the new 3G technology, Mr Ho said in a ceremony unveiling a pilot 3G system. Chunghwa Telecom ranks as the largest mobile phone operator in Taiwan commanding a 31% market share with a customer base of 7.8 million.
A week in Singapore / Malaysia / Philippines / Indonesia tech
Information Technology
- Computer upgrades and other office equipment bought in 2000 should help boost Philippines merchandise exports this year, Trade Secretary Manuel Roxas said. Philippine exports fell 1.8% in April due mainly to a drop in global demand for data processing products and telecommunication devices whose components make up the bulk of the country's shipments. Electronics account for 69% of Philippine export revenues, with semiconductors making up 71% of the sector's shipments. Philippine exports rose 9% from last year to $35.1 billion.
Media, Entertainment and Gaming
- StarHub Cable Vision denied allegations by rival Singapore Telecommunications it had breached a cable agreement and vowed to defend itself against the claim. SingTel, in a lawsuit filed against SCV, claimed Singapore's sole pay-TV operator violated a 1995 agreement under which it was bound to supply cable services only to residential clients using lines leased from SingTel. SCV allegedly used the lines to provide pay-TV services to commercial customers, such as foreign embassies, shopping malls and hotels.
Telecommunications
- PT Telkom Indonesia said it has appointed PricewaterhouseCoopers to audit its 2002 financial statement in a bid to prevent the possible delisting of its stock in the US. The audit will take about two to three months, Telkom said in a statement. The U.S. Securities and Exchange Commission has told Telkom it must resubmit its 2002 earnings by July 15 or face delisting of its stock. According to Telkom, its local auditor, Eddy Pianto, wasn't acceptable to the SEC.
- Deutsche Telekom AG has offered to sell key partners its shareholding in Philippine cellular company Globe Telecom Inc., a stake worth at least $430 million. Singapore Telecommunications Ltd. and Philippine conglomerate Ayala Corp., the other major shareholders in Globe, both said they were reviewing the offer, but many in the market see the deal as good as done. The German telecommunications company didn't disclose the offering price for its 37.7 million common shares in Globe, equal to a 24.8% economic interest, but only a 12.1% voting right. Nor would its partners disclose the terms.
A week in Hong Kong tech
Hardware
- VTech Holdings has reported a strong growth in net profit for last year, largely because of a one-off gain from a lawsuit settlement. It recorded a net profit of $40.8 million, compared with $11.2 million previously, 12% lower than the expectations of 10 analysts polled by Thomson First Call, who forecast the company would earn about $46 million. The profit was boosted by a one-time $34 million gain in the first half from the settlement of a lawsuit against Lucent Technologies, from which it bought a division in 2000. The company also made a $11 million provision for a dispute with the Hong Kong tax authorities.
Internet
- chinadotcom corporation, the leading integrated enterprise solutions company in Asia, nominated Mr. K.O. Chia as an Independent Director of hongkong.com Corporation, subject to regulatory approval. Mr. Chia has an extensive background in telecom and technology with operational experience with both start-up technology companies and Fortune 500 companies in the Asia Pacific region. Prior to becoming a venture capitalist, he created and built the Asia-Pacific operations of Premisys Communications, Inc. from start-up to IPO. He spent 12 years with Hewlett-Packard (now Agilent Technologies) in Scotland, Europe and subsequently transferred back to Asia-Pacific. Mr. Chia subsequently joined Apple Computer Asia to take the lead regional product-marketing role. K.O. Chia is currently the MD of Walden International, a global VC firm headquartered in San Francisco, in which he takes the lead in managing the country funds of China, Hong Kong and Japan as well as focusing on investments in the telecom and technology sectors across Asia-Pacific.
Media, Entertainment and Gaming
- Tom.com is closing in on a majority stake in AOL Time Warner's Chinese Entertainment Television Broadcast (CETV), having secured a consensus on terms from the broadcaster's three shareholders-- CETV is 80% controlled by debt-ridden AOL. Lark International Holdings has 16 per cent and veteran producer Robert Chua the remaining 4 per cent. CETV has a market value of $70 million and is running an operating loss of $15 to $20 million a year. CETV is one of only four foreign channels that can legally broadcast to homes in the Pearl River Delta.
Mobile / Wireless
- SmarTone Telecommunications has initiated a price war for the third time this year. First it expanded the number of free voice minutes, then it lowered entry with a $50 tariff plan and now it is offering free SMS messaging across its network. Every move has been matched by at least some of SmarTone's rivals. But senior executives from three operators grumbled privately about the impact of the company's aggressive moves and wondered what SmarTone chief executive Douglas Li is planning next. With a cash reserve of $3.8 billion (HK$29.6 billion), SmarTone seemed to be well placed for an acquisition spree. But no one was selling, so SmarTone did the next best thing: it shook things up in the hopes of forcing a merger. One executive admitted that the price war might cause his company's monthly revenues to fall by as much as $10 million (HK$78 million). SmarTone has been attracting about 6,000 new users a month from its rivals, with New World and Hutchison also making gains. CSL, which has resisted joining the price wars, is believed to have suffered the most losses, with Sunday also a net loser.
- Hutchison Whampoa Ltd., 65%-owner of 3G UK, reiterated that it has not decided whether to buy the 15% stake in 3G UK held by KPN NV. According to court documents seen by Dow Jones Newswires in London this week, Hong Kong-based Hutchison has proposed triggering a clause in the confidential shareholders' agreement under which KPN may be forced to sell its stake in 3G UK to Hutchison. Hutchison started court proceedings in London against KPN early this month, claiming damages from the Dutch company because it didn't participate in a funding call by the U.K. venture.
Semiconductors
- The government-funded Hong Kong Science and Technology Parks Corp (HKSTP) has set up a chip-design center aimed at galvanizing semiconductor innovation in Hong Kong. The Integrated Circuit (IC) Design Center is to be opened at the Hong Kong Science Park in Sha Tin, with aims of luring local and overseas firms to do chip research and development. HKSTP chief executive Tam Chung-ding said the initiative could create up to 2,000 new chip-design jobs in Hong Kong over the next three years. Mr Tam said all those involved in the center were upbeat about the center’s prospects, noting that multimedia IC specialist RedRock Semiconductor of Silicon Valley and local firm Dragonchip were the first to start work at the site.
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