Media, Entertainment and Gaming
ò Sony announced the launching of its own virtual universe and another 3-D game built almost entirely by players. Called Home, the virtual universe is a real-time, networked world for the PlayStation 3 in which players create human-looking characters called avatars. They can buy clothing, furniture and videos to play on a virtual flat-screen television in their virtual apartments. Industry observers see the concept as similar to Linden LabÆs Second Life, a Web-based phenomenon with nearly 4.5 million residents.
ò Nintendo announced its second quarter lineup for the North American market, with the focus on Pokemon Battle Revolution, the first Wii game that will take advantage of the console's online capabilities. Aside from being the first online title, Pokemon Battle Revolution when released will mark the first game to feature Wii and DS connectivity. Through this feature, users not only have the option of importing saved characters from the upcoming Pokemon Diamond and Pokemon Pearl, but they can also use the DS as a makeshift controller. Pokemon Battle Revolution has already been available in the Japanese market since last December, but will be released for North American audiences on June 25th. Other upcoming Nintendo titles for the Wii include Super Paper Mario in April, Mario Party in May, and Big Brain Academy in June.
Hardware
ò Hitachi announced that it will sell business personal computers made by Hewlett-Packard under the Hitachi brand in Japan. The latest deal is seen as enhancing the longtime cooperative ties with the American PC and software company, which includes Hewlett-Packard providing Hitachi Ltd. with servers. Hitachi, which sells about 350,000 business personal computers a year, said the HP-made computers will replace those currently sold by Hitachi, called Flora, as well as the consumer line called Prius will continue with products manufactured by Hitachi.
ò Sony, Matsushita Electric Industrial and Lenovo Group are among seven computer and electronics makers being sued by 3M on claims they infringed patents used for rechargeable lithium-ion batteries. 3M, which makes products from Post-it Notes to road signs, filed the patent-infringement lawsuit in the U.S. The suit also asked the U.S. International Trade Commission to block US imports of the batteries or products such as notebook computers containing them. 3M is also seeking unspecified damages in the dispute over battery cathode materials, a market the firm estimates at $700 million. The suit, which claimed the patented inventions made the batteries last longer and less likely to overheat, came after Sony said it would spend $440 million to replace 9.6 million lithium-ion cells that were fire hazards, the biggest recall in consumer-electronics history. 3M and Batteries Com are also included in the suit, while Hitachi is part of the suit for batteries used in a cordless screwdriver. Matsushita and its Panasonic Corp unit were named for the "Revolithium" batteries in cordless power tools.
Korea
Internet
ò According to the survey conducted by BBC/Reuters Media Center, about one third of South Koreans or 34 percent consider the Internet as their primary source of news. The figure is considerably higher than the 9 percent world average. Among countries polled were the United Kingdom, the United States, Egypt, Germany, India, Indonesia, Nigeria and South Korea. About 56 percent of those surveyed said TV news is the most important sources of news. Newspapers came second with 21 percent, followed by the Internet and radio with 9 percent, respectively. Among online sources, blogs got the smallest percentage of trust, with South Korea coming in as the exception with about 17 percent saying they trusted blogs as their main news source compared to the 3 percent of all respondents who consider blogs are their main news source. When asked which media is the most important news source, 41 percent of South Korean respondents chose television, followed by the Internet with 34 percent, the highest proportion of the 10 countries. Newspapers followed with 19 percent, then radio with 4 percent in South Korea.
ò According to NHN, the amount of knowledge search database at Naver surpassed the 60 million milestone just three months after it reached the 50 million mark last October. NHN says it looks to the database posting bigger growth. Currently, NHN is by far the largest Internet company in the nation with its market capitalization amounting to W6 trillion ($6.3 billion), compared to Daum Communication, Naver's closest competitor, with its W800 billion ($843.2 million).
Media, Entertainment and Gaming
ò The chairman of Time Warner Inc. announced the plans of the company plans to launch Korean language broadcasting of CNN and a mobile digital video broadcast service. The company said the move is part of its plan to expand its business in South Korea.
Software
ò DIOTEK, a leading developer of mobile software, announced its release of SmartCJK - Korean support for Smartphone WM5, the first Korean language enabling software for Smartphone running Windows Mobile 5.0. With the device, the users can read Korean text in e-mails, web pages and document files on a Smartphone with English OS such as Samsung Blackjack and Motorola Moto Q. DIOTEK is a mobile software developing company based in Korea mainly developing handwriting recognition, mobile dictionary, note-taking software and language supporting software solutions.
ò Axium Technologies, Inc. announced the completion of a licensing agreement with Samsung Techwin for its Maximum Software and the Software-Based Network Video Recorder Products. Under the terms of agreement, Axium will create versions of the Maximum Software and the Network Video Products that specifically operate with the Samsung Techwin suite of Digital Video Recorders. The initial delivery of products is scheduled for 4th quarter of 2007. When the integration work is completed Axium will retain industrial and intellectual property rights for the products. Axium Technologies, Inc is a provider in surveillance security systems software and hardware. The company maintains its corporate presence in Pasadena, CA and its Research and Development Facility in South Korea.
Hardware
ò Samsung Electronics Co. announced that it has secured a deal to build an LCD module production plant in the Slovak Republic, with an initial investment of W147.4 billion ($155.4 million). The company, however, did not specify the total amount of the investment and other details, including the plant's production capacity. Samsung said it looks to the LCD module plant as giving it a foothold in European markets for its flat panel business. Samsung Electronics Co. also said it has signed a deal to supply a 3G mobile communications system to an Indonesian telecom operator in a bid to bolster its presence in the Southeast Asian market. The deal is valued at some $373 million with PT. Mobile-8 Telecom called for Samsung Electronics to provide the CDMA 2000 system including base stations required to install the 3G telecommunications platform in Indonesia over the next five years until 2011.
ò Government sources said that South Korea's digital electronics exports posted an 8 percent growth in February from a year earlier. The report pointed the strong overseas demand for semiconductors and displays as one of the main reasons for the surge. The countryÆs Ministry of Commerce, Industry and Energy said in a monthly report that overseas shipments of digital electronics goods reached $9.1 billion last month, compared with US$8.4 billion posted a year ago.
Semiconductors
ò Samsung Electronics, a leader in advanced semiconductor technology, announced that it has initiated the mass production of its new, broad 256-channel display driver IC (DDI) for plasma display panels (PDP). The company said the new DDI offers a lower power consumption rate over conventional PDP driver ICs, and creates greater cost efficiencies by reducing the number of DDIs per panel. According to the market forecast firm Display Search, the demand for 40 inch and larger PDP screens is expected to grow at 20 percent, from 12.2 million units in 2007 to 18.8 million units in 2010.
Information Technology
ò The countryÆs Ministry of Information and Communication released a report indicating a 6 percent growth in South Korean exports of information technology products in February from a year earlier. The report ascribed the growth to brisk sales of semiconductors and flat panels in overseas markets. The report said South Korean companies sold US$8.9 billion worth of IT goods last month, with their imports posting a 0.4 percent rise to US$4.5 billion.
Ventures/Investments
ò Advanced Micro-Fabrication Equipment Inc. (AMEC), an emerging Asia-based developer of proprietary innovative semiconductor processing technology and equipment, announced that it has raised US$8 million from Samsung Venture Investment Corp. (SVIC) and other investors. The new funding represents the second and final closing of AMEC's Series B effort, which secured a total of US$43 million. Under the terms of its investment, SVIC will hold board observer rights. The first closing of AMEC's Series B round was announced in October 2006, with the amount secured at that time posted at $35 million. The investors include: Walden International, Lightspeed Venture Partners, Goldman Sachs, Redpoint Ventures, Interwest Partners, Bay Partners, Global Catalyst Partners and KT Venture Group. Samsung Venture Investment Corporation manages investment and investment- related activities for the Samsung Group. The investment mandate for Samsung Venture Investment Corporation tracks closely to the strategic priorities of Samsung Electronics' and other Group companies' core operating divisions and encompasses investments in semiconductors, displays, telecommunications, and consumer electronics. Advanced Micro-Fabrication Equipment Inc. (AMEC) is an emerging Asia-based semiconductor equipment company with a portfolio of proprietary wafer fabrication solutions designed to advance technology, increase productivity and reduce manufacturing costs for leading global semiconductor manufacturers.
China
Internet
ò UUSee, a mainland Internet TV and interactive video operator, announced that it had raised US$23.5 million in new financing. Draper Fisher Jurvetson Growth Fund and Highland Capital Partners led the financing round. Beijing-based UUSeeÆs services allow users to watch interactive videos and television online, and counts among its partners, broadcasters and television programmers CCTV, and Shanghai Media Group. The mainland is the world's second-largest Internet market after the United States, with about 137 million web users, and has seen a boom in local video web sites. Mainland YouTube clones, including Tudou, 56.com and Yoqoo, have become popular online destinations for the country's Internet surfers. Major companies such as Sina Corp, Sohu.com and Baidu.com are considering expanding their online video services. UUSee's existing investors include SIG and Sequoia Capital. According to consultancy firm Zero2IPO, local and international venture capital funds invested a total of $1.7 billion in China from January to November last year, an almost 60 percent increase over all of 2005.
ò Market sources say 11 record companies are suing Yahoo China, including international major companies like EMI, Sony BMG Music Entertainment, Warner Music and Universal Music. Led by the International Federation of the Phonographic Industry (IFPI), the group seeks 5.5 million yuan (US$710,000) in damages. The group claimed Yahoo China's website allowed illegal downloads of songs by providing links to the unlicensed music. IFPI said it has been talking to Yahoo China since April of 2006 about illegal music downloads on its web site. The case, filed on January 3, was accepted by Beijing's Intermediate Court, the same court that acquitted Baidu, the mainland's largest search engine, from similar charges in November last year. It must be noted in the case of Baidu that one of the original petitioners, EMI, withdrew its case after it made a separate agreement in January under which its music was made legally available on Baidu while sharing advertising revenue with the search engine. Yahoo China said it might seek a similar arrangement.
ò Shares of Beijing-based online travel company eLong Inc. posted a decline following the company announcement that it missed its fourth-quarter forecast. The company reported a fourth-quarter loss of $234,000, much narrower than last year's loss of $1.1 million, but below third-quarter profit of $337,000. It did not help the company when a statement from a analyst from Susquehanna Financial commented that eLong is losing market share to Ctrip. The company said its total sales went up to $8.9 million from $7.2 million a year ago, but the results also fell short of forecasts. eLong's fourth-quarter hotel commissions went up 23 percent to $7.2 million, but a 3 percent drop from third-quarter results. Air ticketing commissions posted a 31 percent growth to $1.2 million, from the previous year, but down 12 percent from the third-quarter.
ò Tom Online released the confirmation that it will be privatised, a move that will be followed by its return to the control of its parent company Tom Group. Both Tom Online and Tom Group have stopped their respective transactions on the Hong Kong Stock Exchange and NASDAQ. Tom Group currently holds 65.7 percent of the stock of Tom Online. Based on the stock price of Tom Online in Hong Kong, Tom Group needs to pay $206.6 million to purchase the circulating stock of Tom Online at $516.5 million to $645.6 million to take Tom Online private.
Semiconductors
ò National Semiconductor Corp. announced a 45 percent decline in its third-quarter profit to $71.5 million from $130.1 million. The company ascribed the drop to slow sales and increased expenses. The company said revenue for the quarter went down 21 percent to $431 million from $547.7 million.
Hardware
ò Palm announced that it would launch its Treo 680 handheld in China. With the launch of the product, the company said it aims to boost its presence in the Chinese market by opening a research and development (R&D) center there. The company said the smartphone will be sold in cooperation with CEC Telecom Science and Technology Co., and distributed by Beijing Riverwill Communication Technology Co. Industry observers note that PDAs have not yet made their mark in China, although they are growing in popularity, mostly thanks to aggressive pushes by manufacturers such as Lenovo Group, Dopod International, and Motorola, all of which have tailored their devices to the local market. One key design factor is recognition of handwritten Chinese characters.
Ventures/Investments
ò Legend Holdings, the parent firm of mainland computer maker Lenovo Group, disclosed its plans to engage more companies under its investment portfolio to list in the A-share market. The decision follows after one of its units recently raised $570 million, a record for a domestic buyout fund. Hony Capital, one of Legend's three investment units, closed its third buyout fund after raising $570 million, more than five times the US$108 million raised by the first two combined. A company official said another unit, technology-focused Legend Capital raised $170 million. Analysts note that the mainland's venture capital industry has been growing at a rapid pace over the past few years. Government sources said the central government is also encouraging direct investments by private equity and buyout firms as a means for local companies to raise funds, so as to reduce the reliance on bank loans. An official said Legend would look to more cooperation with foreign funds.
Taiwan
Semiconductors
ò Royal Philips Electronics disclosed its plan to sell its 16.2 percent stake in Taiwan Semiconductor Manufacturing Co, valued at about $8.5 billion at current market prices. The company explained the plan as selling $1.7 billion worth of shares on the Taiwan Stock Exchange, a further $2.5 billion worth of depository shares on the New York Stock Exchange, and for TSMC to repurchase an additional $1.5 billion worth of shares from Philips, all this year. In their statement, TSMC said it would repurchase PhilipsÆ remaining shares by 2010. The divestment follows another major deal where Philips divested its interests and holdings in semiconductors. Philips sold an 80.1 percent stake in NXP Semiconductors, its own former semiconductor division, to a group of private equity investors led by Kohlberg Kravis Roberts for Ç4.3 billion ($5.6 billion) in August.
ò Taiwan Semiconductor Manufacturing Company (TSMC), the worldÆs largest chip foundry, posted a 2.1 percent decline in sales to NT$20.9 billion ($637 million) in February from January. In its guidance given in late January, TSMC said it expected sales in the first quarter to March to drop between NT$62 billion ($1.8 billion) to NT$64 billion ($1.9 billion) from NT$74.9 billion ($2.2 billion) in the fourth quarter of 2006.
Hong Kong
Telecommunications
ò Hutchison Telecommunications International announced that its shareholders have approved plans to sell its 52 percent stake in Indian mobile phone operator Hutchison Essar to Britain's Vodafone Group PLC. An official of the company described the support from its shareholders as ôoverwhelming.ö Analysts said the market expected the result because Hutchison Telecom's controlling shareholder, conglomerate Hutchison Whampoa Ltd., could also vote. Some of Hutchison Telecom's minority shareholders said they voted in favor of the plan because of the special dividend of HK$6.7 ($0.8) a share to be paid on the deal's completion. The Hong Kong-listed company said it would use HK$40 billion ($5.1 billion) from the proceeds of the sale to invest in new and existing businesses and for general working capital, with HK$13.9 billion ($1.7 billion) going into pay down debts.
Hardware
ò EMC Corp announced the opening of its Asia-Pacific logistics center in Hong Kong, with the new operation, backed by integrated logistics services provider DHL Exel Supply Chain, expected to speed up shipments for EMC's mainland original equipment manufacturing partners and its other customers in the region. EMCÆs computer storage devices are used as part of the telecommunications systems from Huawei Technologies and ZTE. The EMC Asia-Pacific and Japan Supply Chain and Logistics Center is under the management of DHL Exel Supply Chain, a unit of global express and logistics firm DHL. Financial terms were not given. Earlier, DHL Exel Supply Chain and EMC also collaborated to develop a software program called Global Visibility Tool to provide EMC's partners and sales teams with instant tracking of orders. According to research firm International Data Corp, the mainland continues to be the major contributor to the Asia-Pacific, excluding Japan, in terms of storage hardware demand. External disk storage revenue on the mainland in the third quarter of last year reached $168.6 million, which accounted for 33.2 percent of the total market valued at $507.7 million in the region, excluding Japan. Financial details of the deal were not disclosed.
Singapore/Malaysia/Philippines/Indonesia
ò Qatar Telecom announced its acquisition of some 25 percent equity stake in Singapore Technologies Telemedia (ST Telemedia) even as ST Telemedia remains the controlling shareholder with a 75 percent equity stake in the company. Earlier, the two companies announced their strategic alliance, with the investment transaction being completed in March.
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