Japan
Hardware
- Toshiba Corp. and disc manufacturer Memory-Tech Corp. have decided to freely publicize the technical specifications for manufacture of HD DVD optical discs. HD DVD is one of the two competing next-generation optical disc formats, the other being the Blu-ray format promoted by Sony Corp. and Matsushita Electric Industrial Co. Memory-Tech operates a production line at its Tsukuba factory that writes software to HD DVD discs. The equipment can make double-layer discs that hold 30 GB at a rate of one disc every 3.5 seconds with a yield of better than 90%. The same equipment can be converted in less than 5 minutes for manufacture of regular DVDs. The detailed technical specifications for this equipment will be made freely available starting from late August on the websites of both Toshiba and Memory-Tech.
- Barcode system maker Tohken Co. has developed a relatively small and inexpensive wireless device for transmitting and receiving high-resolution images. Designed in collaboration with a French maker of semiconductors, the device uses signals transmitted in the 60 GHz milliwave band to send and receive data at the rate of around 1.5 Gbps over distances of up to around 100 meters. Data-transfer rates that high enable real time monitoring of images with a resolution comparable to high-definition television. Tohken will begin shipping systems in September, charging ¥1.6 million ($14,300) for a set that includes a transmitter and a receiver. It hopes to sell 200 sets in the first year and nurture this into a business with annual revenues of ¥1.6 billion ($14.4 million) after three years.
- Electric equipment maker Nippo Electronics Co. has developed a device for transmission of information such as video that uses radio signals to jump spaces that obstruct the passage of the cable, such as concrete walls and elevator doors. The device converts the cable's signals into 2.4 GHz high-frequency radio signals which can be picked up and reconverted by a similar device located behind an obstruction as thick as 20cm. No antenna is required for this transmission; the signals jump the space using a phenomenon known as coupling. By attaching a device to cables on either side of a wall, the data can be sent without signal loss and without the need to punch a hole for the cable. Nippo Electronics will sell the device in sets of two, priced at ¥600,000 ($5,386) a pair. It expects the product to be used for monitoring of video cameras set inside elevators and to send live video feeds out from surgery rooms.
Mobile / Wireless
- NTT DoCoMo reported its net profit in the three months to June fell 13.4% from a year earlier to $1.5 billion as price competition ate into its revenue. Pre-tax profits fell 17.8% to ¥276.9 billion ($2.5 billion) and revenue slipped 2.5% to ¥1.2 trillion ($10.8 billion). Another factor that pressured profits was a 9.6 percent expansion in costs to promote a customer shift to its cutting-edge third-generation (3G) mobile services, called FOMA.
Telecommunications
- Japan's second-ranked telecommunications operator KDDI reported its net profit rose 17.6% to $463 million in the June quarter due to higher income from its mobile business and cost cutting. KDDI raised its net profit forecast for the year to March 2005 to ¥213 billion ($1.9 billion) from the ¥190 billion ($1.7 billion).
Korea
Internet
- Daum Communications Corp. reported a first-half operating profit of W23.1 billion ($19.8 million) on sales of W91 billion ($77.8 million). The figures are up 29.4% and 47.2% from last year respectively. Daum is the operator of Korea's No. 1 Internet portal Daum.net and popular free e-mail service Hanmail.net and advertising accounted for 52% of first-half revenue. Online shopping sales were W24.3 billion ($20.7 million), up 74% from last year and representing 27% of revenue. Paid services including online games, movies and other entertainment content, generated W19.1 billion ($16.3 million), up 23.6% from the first half last year.
Media, Entertainment and Gaming
- Apple Computer Inc. announced the release of its portable music player, the iPod mini, in Seoul, hoping its latest product will overcome the disappointing market performances of earlier models. iPod mini is integrated with a 4-gigabyte hard disk that is capable of holding more than 1,000 songs copied at 128 kbps and a rechargeable battery featuring up to eight hours of playing time. It will sell for W341,000 ($292), about $50 more than in the United States, but similar to the conventional 512Mb flash-memory digital music players that hold about 200 songs selling here for around W300,000 ($256.4).
Semiconductors
- Hynix Semiconductor, the world's third-largest memory chip maker, swung to a record quarterly profit thanks to stronger sales and prices and would raise output of flash memory. Analysts expect memory makers such as Hynix and market leader Samsung Electronics to benefit from firm prices for their chips in the second half thanks to a healthier PC market, in contrast to makers of processors and other chips facing growing inventories. Prices for dynamic random access memory (DRam) chips used mainly for computer memory rose in the second quarter as glitches at companies moving to next-generation production technology crimped supplies. Hynix earned W625.2 billion ($71.5 million) in net profits for the quarter to June 30, compared with a revised W526.3 billion ($449.8 million) loss a year ago. This is up 78% from a W351.1 billion ($300 million) profit in the first quarter. Telecommunications
- South Korea's top mobile carrier SK Telecom reported that net profit for the second quarter to June fell 46% from a year ago to W299 billion ($256 million) as a result of higher marketing costs and lower interconnection charges. Operating profit fell 43% to W463 billion ($395.7 million) while sales for the period totaled W2.4 trillion ($2 billion), barely changed from a year ago.
China
Internet
- China planned a multi-pronged approach in its fight against internet porn, employing both high technology and sex education to stop young people from visiting lewd websites. The government kicked off a massive campaign to weed out pornography from the country's rapidly growing internet, but experts warned technology had to be used to ensure a lasting effect. High technology would play a vital role in ensuring a clean cyberspace, as it could be used not only to crack down on domestic internet porn, but also to block overseas sites. Officials and experts, however, are also aware that half the country's internet population of 87 million are people under the age of 24, and that many simply visit porn sites to learn about sex. This is because there are few other sources of information, given the low priority of the subject in schools combined with parental reluctance to talk about the still-taboo issue.
- Tom Online will partner with ESPN to offer sports content to mobile phone users, as part of the company's plan to add new revenue streams. The multi-year deal, to be announced over the weekend, would allow Beijing-based Tom Online to provide English Premier League (EPL) content. ESPN, which has exclusive broadcast rights for EPL in China, will promote the Tom Online brand through its television programs. Meanwhile, parent Tom Group said outdoor advertising sales would rise by as much as 70% this year to more than HK$400 million ($51.3 million).
- Sina Corporation announced its financial results for the second quarter ended June 30, 2004. Net revenues for the quarter grew by 89.3% year-over-year to a record $49.2 million. Advertising revenues for the quarter grew by 63.4% year-over-year to $15.5 million and accounted for 32% of total revenues.
- Sohu.com Inc reported double-digit growth in both revenues and profits in its second quarter thanks mainly to its online advertising business, but the firm's short messaging service (SMS) continued to decline. The Nasdaq-listed Chinese firm reported that its revenues rose by 41% year-on-year in the quarter to $27.3 million, beating its prediction of $26.1 to $27.1 million. Its quarterly profits also rose to $9.9 million, or 25 US cents per share.
- Tom Online has achieved a 20.3% rise in second-quarter profit after diversifying its mobile short messaging service (SMS) business to interactive voice operations. The Hong Kong and Nasdaq-listed firm reported a net income of $10.1 million, up from $8.4 million a year earlier. Revenue increased 19% to $30.9 million. SMS sales reached $15.1 million, up slightly from $14.7 million.
Mobile / Wireless
- China Unicom, the mainland's sole CDMA mobile network operator, is gearing up its global expansion efforts in the hope of becoming a global class leader within five years. The strategy will focus on taking small stakes in emerging markets carriers and collaborative efforts aimed at increasing CDMA operators' bargaining power with equipment vendors. Unicom also aims to force technology standardization and facilitate bulk handset purchases among operators in these markets, a move that if successful could squeeze the margins of handset makers. Unicom is in talks to take a stake in Romania's POSTelecom, a new operator established last year by the country's postal service as part of a deregulation program. If successful, it would be China Unicom's first investment in a foreign carrier and other investments could be made if opportunities arose.
- China Unicom will launch this week the world's first-ever GSM-CDMA dual-mode mobile phone service - its latest effort to lure subscribers to its underused CDMA network. Motorola, Samsung Electronics and LG Electronics are developing three new handsets for Unicom that will allow users to use both GSM and CDMA networks on the same phone. China Unicom said the new dual-mode service, branded Worldwind, would also allow GSM users in China to enjoy high-speed data services offered by Unicom's CDMA network. The carrier hopes the new phones will help it win China Mobile's users - who do not want to drop their existing GSM account with the country's dominant carrier - to sign up for Unicom's CDMA service as well.
Semiconductors
- Semiconductor Manufacturing International Corp (SMIC) reported robust second-quarter earnings and forecast strong demand up to the third quarter of next year - shaking off concerns of a slowdown in the cyclical chip industry. The chipmaker is aggressively expanding capacity, and last week began pilot production at a new, advanced 12-inch wafer line in Beijing. Wafers shipments are expected to increase 23% to 27% this quarter. SMIC reported second-quarter earnings of $34.2 million, up 24.4% from the first quarter, compared with a loss of $30.5 million last year. Revenue was $221 million, up 18.2% sequentially and 193.9% from a year earlier.
- CSMC Technologies planned to re-launch its delayed initial public offering after agreeing with its underwriter to cut its minimum offer price target by 20%. The Wuxi-based low-cost chipmaker planned to raise up to $683 million last month, but the offering was delayed as it failed to agree with bookrunner Citigroup on the final offer price. The decision came after the order book closed and five days before shares were to list on the Hong Kong main board on June 25.
Telecommunications
- China Network Communications (Netcom) has made a huge write-down on its assets before a planned Hong Kong listing in an effort to offer the shares at a low price. The mainland's No. 4 basic telecom services provider wrote down Rmb23 billion ($2.8 billion) of its assets value for last year and expects to report a net loss of Rmb11 billion($1.3 billion) for the year. Banking sources said Netcom had "planned ahead" to bring down its book value in an attempt to lower its offering price to draw investor interest. The huge write-off was made to avoid the problem that China Telecom faced in its first attempt to sell shares. In 2002, China Telecom was forced to first halt then reduced its share offering by 50% because it was unable to price its shares at a deep discount to its book value, as demanded by investors. Chinese regulations prevent the sale of state assets for less than their book value. The carrier cut the number of shares offered to keep the issue at a marginal premium to its book value. Instead of the originally planned $3.7 billion share offering, China Telecom eventually raised $1.4 billion when it re-launched the offer within a week.
Taiwan
Semiconductors
- United Microelectronics Corp (UMC), the world's second-largest made-to-order microchip maker, reported its earnings jumped more than six-fold in the six months to June on the back of increased shipments and higher margins. Net profit for the half reached NT$19.6 billion ($573 million) from NT$3.1 billion ($91.2 million) in the year ago term.
- Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading made-to-order microchip maker, first half earnings more than doubled from a year ago on the back of higher margins and rising wafer shipments. Net profit for the six months to June surged to NT$42.2 billion ($1.2 billion) from NT$16.1 billion ($473.5 million) a year ago.
Hong Kong
Telecommunications
- Hong Kong Broadband Network, a unit of City Telecom, unveiled a broadband telephone service that posed a new challenge to dominant fixed-line carrier PCCW. The offering piggy-backs on the existing broadband networks of other players - such as PCCW, HGC and Wharf T&T - to bring users voice services for as little as HK$88 ($11.3) monthly. Fixed-line services at PCCW start at about HK$120 ($15.4) per month. Customers are provided with an adapter box that is attached to a broadband modem and computer. A normal phone is then connected to the adapter box. Hong Kong Broadband assigns a telephone number to customers, or an existing number can be transferred. Market watchers said the move could further erode PCCW's dwindling share of the voice services market.
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