Media, Entertainment and Gaming
ò Sony Computer Entertainment Inc. (SCE) announced that domestic shipments of its PlayStation 3 stationary game console reached 1 million units as of January 16, 2007. The company achieved this in about two months from the product's release on November 11, 2006. Worldwide shipments extended to 2 million units, which SCE claimed as is the fastest growth among all the game consoles it has ever released. Total shipments of compatible software in Japan and the U.S. surpassed 5 million titles as of the end of December 2006. SCE said total registration for PlayStation Network online service for PS3 users also exceeded 0.5 million accounts combining those in Japan and the US. This service allows the user to download the latest sample software and other files. The number of total downloads of Gran Turismo HD Concept, whose free distribution started in December 2006, has already surpassed 300,000 combining those in Japan and the U.S.
Semiconductors
ò Renesas Technology, a Japanese semiconductor maker, and Taiwan's Powerchip Semiconductor, revealed their plans to set up a joint venture to design memory chips that will have higher performance at a lower cost. Under the arrangement, Renesas Technology will hold a 35 percent stake in the joint venture, with the remaining 65 percent owned by Powerchip Semiconductor. To be set up in Japan, the joint venture will specialize in designing advanced memory chips targeted to possess more high performance and low cost. Renesas is a company set up jointly by Japanese electronics makers Hitachi and Mitsubishi Electric in 2003 amd is one of the largest semiconductor companies in the world and a leading microcontroller supplier globally. At present, Hitachi held a 55 percent stake in Renesas and Mitsubishi Electric the remaining 45 percent stake. Powerchip Semiconductor is Taiwan's largest memory chipmaker by revenue.
Software
ò NEC Electronics Corp. announced the release of AP131 LSI chip for music playback, the chip reportedly enables mobile phones to replay music files like those encoded using iTunes and Windows Media Player. In addition, the company said this chip also lowers power consumption and allows 60 hours of continuous playback. The AP131 supports audio formats including MP4 and ASF. Mobile phones will be able to share and play the same music files (excluding files compatible with DRM copyright protection) designed for portable digital music players and PCs without changing the encoding formats. Like the company's previous model, the latest chip can also support playback of SD-Audio files encoded using MOOCS Player music player software. . NEC Electronics plans to achieve a monthly output of about 1 million units by the end of FY2007. The company intends to present this chip at the 3GSM World Congress 2007 event to be held in Barcelona, Spain in February 2007.
Hardware
ò Hitachi Global Storage Technologies announced the industry's first terabyte (TB) hard drive, dubbed the Deskstar 7K1000. Along with the product, the company also announced a CinemaStar version 1TB hard drive, which provides optimized capabilities specifically designed for digital video recording (DVR) applications. Consumers have come to rely on their digital video recorders (DVR) to record and store their favorite programs, and with the increasing availability of high-definition (HD) TV programming, 1TB of storage will become a necessity. High-definition video requires four to five times more storage capacity than standard-definition video and a terabyte drive allows viewers to easily store and retrieve almost 250 hours of HD programming. Also, an enterprise version of the TB drive designed for lower duty-cycle, high-capacity enterprise environments is currently under evaluation at major OEM customers and is expected to be available in the second quarter. The Deskstar 7K1000 SATA version will be available in Q1 2007 at 750GB and 1TB capacities. The 1TB capacity point will have a suggested retail price of US$399. The CinemaStar 1TB hard drive will be available in the second quarter.
ò Canon announced that it would take full control of a joint venture for flat panel TVs using a new technology called SED, with the company aiming to transform SED into a wholly owned subsidiary. SED is an equally owned venture with Toshiba. The move is to own it wholly and is said to be a response to litigation against Canon over SED technology. Nano-Propietary, a U.S. technology company that has licensed key SED technology to Canon, claims SED is not covered under the agreement because the company is not a Canon subsidiary. SED, which stands for surface-conduction electron-emitter display. Industry sources place the acquisition price at about 10 billion yen (US$82.4 million).
Korea
Mobile/Wireless
ò LG Electronics Co. announced that it will start selling next month a new mobile phone that incorporates a buttonless touch-screen resembling the iPhone from Apple Inc. LG calls it the Prada Phone as it is being produced in partnership with the Italian fashion brand, and is targeted to be sold in late February for 600 euros (US$780) at mobile phone dealers and Prada stores in Britain, France, Germany and Italy. In Asia, it is slated to be introduced in March even as no plans yet for the U.S. launching has been set. The LG phone has a wide-screen display and can play most popular digital music and video formats, and has a 2-megapixel camera like the iPhone. Its memory can be expanded with cards.
ò Pantech Group announced the signing of a deal to supply handsets to LG Telecom Ltd., the countryÆs smallest mobile operator. The supply deal comes more than a month after Pantech Group asked for a debt workout program from its creditors in the face of mounting debt and tough market competition. The creditor banks led by the state-run Korea Development Bank agreed to stop debt repayments from the two mobile phone makers for as long as three months, allowing the ailing firms to avoid bankruptcy. As of the end of September, Pantech and the affiliate had a total of US$2.1 billion in combined liabilities. Earlier in the first week of January, Pantech Group signed a similar deal with KTF Co. to provide nine handset models to the nation's second-largest mobile service carrier within this year. The company, the third largest mobile phone maker in terms of combined sales of its two units, said that it sold 3.1 million to 3.2 million units of handsets in the local market last year, lower than its annual guidance of 3.5 million. The figures stand for some 20 percent of the local market where 16 million handsets were in 2006.
Media, Entertainment and Gaming
ò Industry observers see the Japanese video game maker Nintendo aggressively making its entry into the South Korean market. Following its establishment of an office in Seoul last year, Nintendo, one of the worldÆs top three game makers, has just released its latest portable game machine in the country. The Nintendo DS Lite, a top seller in Japan with some 8 million units sold. Observers note that Nintendo Korea has even hired a popular movie star to promote its products to local gamers, with the company saying that that they aim to attract people who do not usually play video games or those who show little interest in video games. Later in the year, the company will introduce its highly anticipated Wii game console.
ò Industry sources announced that land-based digital multimedia broadcasting will be available across South Korea starting in the first half of this year. Also known as terrestrial or T-DMB, the service was launched by South Korean broadcasters in late 2005, mainly in the Seoul metropolitan area. Through it, TV shows can be viewed for free on cell phones and other hand-held devices. The countryÆs Information and Communication Ministry said that it will select next month more regional broadcasters to offer T-DMB services, with the expanded service to be offered in major cities starting in March and branch out nationwide by the end of June. Market sources revealed that some 3 million T-DMB handsets were sold in the country in 2006.
ò NDS, the leading provider of technology solutions for digital Pay-TV, has announced that KT and the C-Cube consortium have selected NDS' market-leading content protection solutions and has successfully completed one of the first IPTV trials in South Korea. The IPTV trial was concluded in December of 2006, and final technical evaluation will be submitted to the Ministry of Information and Communications and the Korean Broadcasting Commission for consideration. The Ministry of Information and Communication and the Korean Broadcasting Commission are conducting rigorous technical verification and stability testing of the C-Cube consortium's IPTV service. The information will be utilized for the review of legislation that will authorize the launch of commercial IPTV services for the first time in Korea. The C-Cube consortium is comprised of 54 companies, including KT, SK Telecom, Hanaro Telecom, LG Dacom, Onse Telecom, KBS, MBC, Samsung Electronics and other partners. The IPTV service included a broad range of state-of-the-art applications, such as broadcast TV, video on demand, streaming and multimedia messaging, digital photos, and interactive TV services delivering stock market, weather and sports information. NDS Group plc, a majority owned subsidiary of News Corporation, supplies open end-to-end digital technology and services to digital pay-television platform operators and content providers.
Software
ò The South Korean government announced a major project called the SW Flagship Project, which is aimed at boosting growth momentum in software development. The project will involve state funding of 10 billion won (US$10.6 million) every year until 2011. The plan, which is focused on developing key computer systems for airplanes and Internet servers, is also targeting the development of its own technology for its KF-16 fighter jets. The report said the countryÆs Communication and Information Ministry will select research institutes for the project.
Hardware
ò LG Electronics Co. announced that it has signed a deal with Sinolink Worldwide Holdings Ltd to provide its home network systems for newly built apartments in China. Home network system is designed to build network-connected electronics appliances in high-end houses, helping people to enjoy a more convenient lifestyle. It is LG Electronics' second such deal with the Chinese builder since 2003 when it supplied 15 billion won (US$16 million) worth of its home network system to large-scale apartments in the southeastern Chinese city of Shenzen. The terms and value of the deal were not disclosed.
ò Samsung Electronics Co. announced the signing of an agreement with U.S. cable giant Time Warner Cable to cooperate in selling its TVs and set-top box products in one of the world's largest markets. Under the deal, Samsung said that it will supply its open cable application platform-based (OCAP) TVs and set-top boxes, designed to enable people to use its interactive broadcasting service, which kicks off in the U.S. nationwide this year. In a separate development, Samsung Electro-Mechanics Co., a South Korean electronics parts maker, said Thursday that it posted a profit during the fourth quarter for the year on brisk sales of its core products. The firm said its net profit reached 32.7 billion won (US$34.9 million) during the October-December period, a turnaround from the previous year's loss of 9.9 billion won (US$10.5 million) during the same period.
ò LG.Philips LCD Co., the world's second-largest maker of liquid crystal displays, announced that it posted a net loss in the fourth quarter, with the company ascribing the results to decline in price and a strong local currency. The company posted a net loss of 174 billion won (US$185.9 million) in the October-December period, a sharp turnaround from a 328 billion won (US$349.5 million) profit a year earlier, the company said in a regulatory filing.
Semiconductors
ò According to the Korea Customs Service, the 10 leading export items û semiconductors, cars, telecommunications, ships, petroleum products, computers, flat display panels, synthetic resins, steel products and auto parts û made up 58.8 percent of total exports last year, up from 58.5 percent a year earlier and 56.9 percent two years earlier. In 2003, the items accounted for 55 percent of the export volume. The report noted that the best-selling item for South Korea last year was semiconductors, with the country shipping chips valued at some US$33.2 billion. China retained its position as the best buyer of Korean products last year. Exports to China made up 21.3 percent of the total export volume, while that to the United States accounted for 13.3 percent. Exports to Japan made up 8.2 percent of the total.
Information Technology
ò The countryÆs Fair Trade Commission has given Shinhan Financial Group the permission to take over the country's largest credit card company, LG Card. Earlier the commission had reviewed if the acquisition would lead to a monopoly by Shinhan, which is Korea's second-largest financial service company. The commission's approval has been reported to the country's financial watchdog. In December, Shinhan agreed to buy a majority stake in LG Card for 5.2 trillion (US$5.5 billion).
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