Media, Entertainment and Gaming
ò The Bank of Tokyo-Mitsubishi UFJ announced that it has entered into an alliance with Walt Disney (Japan) to provide a new service for personal computers and mobile phones. Industry observers note that this marks the first time that Walt Disney has joined forces with a major Japanese bank to work in the online banking business. Under the agreement, an account is all that is needed to participate in the new Disney Osaifu (purse) Service. Points awarded for using financial services can be used to buy Disney goods and play games featuring Disney characters.
Internet
ò According to the Internet research firm Infoplant, the phenomenon of downloading manga to a computer or cell phone is gaining traction in the Japanese market. The survey was conducted via cell phone and covered some 5,400 respondents. The research firm said out of the people surveyed, 91.8 percent knew of the existence of manga downloads, and 40.2 percent had actually downloaded a manga title before. The study said that out of the people who downloaded manga and specified their gender on the survey, women outnumbered men 43.6 percent to 34.4 percent. The overwhelming majority of these women were age 19 or younger (61.7 percent). The survey also indicated that manga downloads are especially popular with commuters and younger users. The survey found out that the trend has interested others, with over 60 percent of those surveyed indicating that they plan to try downloading manga in the future.
Mobile/Wireless
ò According to the research by ROA Group, the number of mobile users in Japan will grow to 107.3 million by the end of 2010 with a compound annual growth rate (CAGR) of 3.9 percent during 2003-2010. The ROA Group report stated that the introduction of Mobile Number Portability (MNP) was the most important issue in the Japanese mobile market in the second half of 2006, even as the report said that it had a limited influence on the overall mobile market because mobile operators maintained a relatively low subscriber churn rate by offering attractive handsets, services and tariff plans. The report took note of another significant change in the Japanese mobile market with the emergence of SoftBank Mobile, created by the merger between SoftBank and Vodafone Japan. The ROA Group contended that 3.5G (HSDPA) networks are spreading and data services are expected to increase with an accelerating speed, providing another driving engine for market growth in Japan.
Hardware
ò 3M disclosed that it has settled a patent dispute involving lithium ion battery cathode materials with Japan's Matsushita Electric Industrial. In a statement, 3M said that under the agreement, Matsushita and its subsidiary Panasonic Corp. of North America were now licensed sources of batteries. The US-based 3M did not disclose the terms of the settlement. The settlement is also expected to remove Matsushita and its Panasonic unit from the lawsuit as well as from a complaint filed with the US International Trade Commission. According to a 3M spokesperson, both the lawsuit and the complaint are proceeding against such companies as Sony, Lenovo Group, a US unit of Hitachi, CDW Corp., and Sanyo Electric Lithium ion batteries are a source of power for laptop computers, mobile phones and portable electronic devices.
ò Industry sources said Pentax Corp. has agreed to a takeover estimated to have reached about 105 billion yen ($860.2 million) by rival Hoya Corp. Under the agreement, Hoya is offering 770 yen ($6.3) a share for the Pentax shares, and plans to start the tender offer to shareholders in early June, and turn Pentax into a wholly owned unit. The two companies said details of the deal will be announced later.
ò NPC, a developer of equipment to manufacture solar batteries, has received approval to list on the Tokyo Stock Exchange's Mothers Market. The company will offer 300,000 shares to the public in its initial public offering. Of those, 250,000 are newly issued shares and 50,000 are shares currently held in private. Okasan Securities is the lead underwriter of the offer. The company will offer all the shares through the book-building method. For the current fiscal year through February 2008, the company forecasts a group net profit of 443 million yen ($3.6 million), a pretax profit of 765 million yen ($6.2 million), and sales of 6.4 billion yen ($52.4 million).
Korea
Internet
ò Internet portals in the country said they will voluntarily submit internet advertisements for review before they are released and limit the number of pop-up ads to three per page. This was a response from the Ministry of Information and Communication announced that it would impose responsible behavior rules on portals and with them the law aimed at the industry. According to the ministry, the Korea Internet Advertising Deliberation Organization, which is made up of 60 web businesses including Naver, Daum Communication, Yahoo Korea and SK Communications, will begin reviewing Internet ads soon. The rules limit pop-up ads to three per webpage, and ads that put shortcuts to websites on users' desktops without their approval will be forbidden. Banner ads that users cannot close or that open other ads when users click the close button are also banned. Internet companies are also forbidden from collecting individuals' information without their approval via ads or web pages linked by ads.
ò Daum, the countryÆs second-largest web portal, announced its move to work with Google on key areas of services. According to its top officials, the two companies agreed to strengthen the synergy in their businesses through closer cooperation. Daum said, in particular, that it looks to the latest deal between the two companies to boost its blog and web-community function, as well as improve the quality of its user-created content or UCC services.
ò The South Korean government said it will invest some 1 trillion won ($1.1 billion) in a bid to help the country adopt a next-generation internet protocol by 2013. The new network layer system, called Internet Protocol version 6, abbreviated IPv6, provides a virtually infinite number of addresses, compared to the current IPv4. Under the new system, a senior official of the countryÆs Ministry of Science and Technology said all state and public Internet protocols will be converted to the IPv6 mode by 2010, with the private sector to be encouraged to switch to the new mode by 2013. The official said the government will prod local Internet system developers to boost their know-how regarding IPv6 equipment and hardware. Foreign companies such as Juniper Networks Inc. and Cisco Systems Inc currently dominate this field.
Mobile/Wireless
ò A top official of Nokia, the world's largest mobile phone manufacturer, called for South Korea to introduce a single and globally recognised mobile phone software platform. According to the official, the country has long maintained "its own software platform, different from the global standard," but this unique software standard of South Korea keeps it from entering other Asian markets despite its efforts to gain entry into those markets.
Software
ò According to the countryÆs Information and Communication Ministry, software exports posted a growth of more than 10% in 2006, compared to the year before. The ministry said software exports in 2006 added up to $1.3 billion, a 13 percent growth from 2005. Exports of digital content and IT service products formed the bulk, with China as the lead buyer of South Korean products. Noting a significant rise in exports to the Middle East and South America, the ministry said two-thirds of all exports went to Asian countries.
Hardware
ò LG announced filing a patent in the US for a washing machine with an MP3 player even as the product is still in the idea stage. The news of the device and the patent generated different responses with observers questioning its practicality as washing machine are known to make a lot of noise when they are working. Media sources also questioned the usefulness of the MP3 feature, pointing out that most people do not want to listen to music in front of a droning washing machine. LG, however, said the invention is aimed at responding to consumer demand in the changing electronics market.
Semiconductors
ò Samsung Electronics announced that it would invest 933.8 billion won ($1 billion) in a bid to build up its production facilities for memory semiconductors. Out of that total investment, the company said 646.5 billion won ($696.3 million) will be used for building new facilities while 163.4 billion won ($176 million) will be spent on improving existing facilities. The remaining 128.9 billion won ($138.8 million) are earmarked for related facilities. Samsung said it plans to start installing new production lines at its plants this month.
Ventures/Investments
ò LG announced setting up a one-stop manufacturing cluster for LCD components and televisions, with key components for the cluster to come from South Korea. LG said it plans to assemble and produce LCD components and finished TV sets at the cluster for distribution in Europe, the world's largest LCD TV market. Four LG Group affiliate facilities are operating in the cluster: LG Electronics' finished TV set assembly line, LG.Phillips' LCD module assembly plant, LG Chem's polarizer plant and LG Innotek's inverter and power module manufacturing plant. The 1.5 million-sq/m cluster is considered to be the companyÆs third-largest manufacturing base after the Paju Display Cluster measuring 4.4 million sq.m and the Nanjing Display Cluster measuring 2 million sq/m. The Poland cluster is estimated to be worth 500 billion won ($538.6 million). LG said plans to produce 2.4 million LCD units annually at the Poland site. With demand for LCD TVs expected to increase rapidly in the European region, the Poland cluster is expected to play a key role in LG's entry into Europe. Market sources said for 2007, Europeans are expected to buy 27 million LCD TVs, or 37 percent of the global LCD TV market.
China
Mobile/Wireless
ò Industry sources reported that Beijing DRC Mobile Phone Animated Cartoon Design and Creation Industry Alliance is to be formally set up soon in July 2007. The alliance is jointly initiated by the Beijing Industrial Design Center and Beijing Zhonghe Tiandi Information Technology and will have an initial fund of 10 million yuan (US$1.3 million). According to the CEO of Beijing Zhonghe Tiandi, the funds will mainly be used for animated cartoon talent training, property rights protection and industry chain integration. The alliance is aiming to improve the mobile phone animated cartoon industry.
ò New Oriental Education and Technology Group announced signing an agreement with Nokia to launch a mobile learning program. The initiative is aimed at giving students access to select New Oriental course content via their mobile phones. According to a Nokia official, by working together with New Oriental, the leading education service provider in China, Nokia strives to enrich consumers' learning experiences anytime, anywhere in a most convenient way with their mobile phones. Under the one-year agreement, New Oriental will provide specially designed English language and test preparation course content for download on both the Mobiledu.cn website and New Oriental's online learning site Koolearn.com. Mobile learning content will then be available in selected new Nokia mobile phones fitted with educational programs.
Semiconductors
ò According to its chairman, Taiwan-based TPO Displays has sold its 2.5G TFT LCD plant at Kobe, Japan to China-based Shenzhen Laibao High-technology (SLC). Media sources said the value of the deal was more than NT$1.2 billion ($36.2 million). The official said the reason for the sale was the high costs of production making it more appropriate to transfer facilities to China. The plants in Japan will now just concentrate on R&D activities in the future. SLC specializes in the production of high-end ITO (indium tin oxide), a key component for TFT LCD and color filter production and transparent conductive glass. In June 2006, TPO merged with Royal Philips Electronics' Mobile Display Systems (MDS), which gave TPO displays the 2.5-generation TFT LCD plant in Japan.
Hardware
ò Gome, a domestic electrical appliance retailer, announced that it has signed a deal with Sichuan based color TV manufacturer Changhong for the second half of this year. The deal is estimated to be worth some Rmb1 billion ($130.7 million). According to Changhong, the reason for their entering the deal is that they aim to boost their sales volume and at the same time promote the development of both companies.
Taiwan
Semiconductors
ò According to a filing with TaiwanÆs Ministry of Economic Affairs Investment Commission (MOEAIC), United Microelectronics Corporation (UMC) has secured approval from the authority to invest $270 million in its Singapore branch. UMC maintains one 12-inch fab in Singapore.
Hardware
ò According to media sources, a number of Taiwan-based PC makers are looking into a possible venture into the production of Linux-based PCs following DellÆs launch of three Linux-based consumer PCs in the U.S. this month. The reports cited Asustek Computer and other PC makers that are cooperating with software solution provider Novell to work on Linux-based notebooks. Industry observers note though that given the popularity of Windows-based operating systems, the Linux-based PCs are unlikely to become mainstream and could be produced mainly for designated emerging markets.
ò Media sources indicate that Yageo, a leading global passive components supplier, has plans to issue euro-convertible bonds up to $230 million. Industry observers said the company is looking to an investor from Japan, with a plan to acquire some 20 percent stake in the company. According to sources, the investor is not a passive components maker.
Hong Kong
Mobile/Wireless
ò NEC Corporation disclosed that it has received orders for its Mobile Internet Platform from Hutchison Telecommunications (Hong Kong) Limited, which initiated i-mode services in Hong Kong in May. NEC's NEMIP enables the provision of i-mode service, one of the world's leading mobile Internet services. This platform is an integrated solution composed of integrated subsystems such as gateways, mail server systems and portal systems, which incorporate multi-operator functions. The multi-operator function, an enhanced feature of NEMIP, is seen as allowing mobile operators to share a common i-mode platform and service with their affiliated companies and is expected to enable Hutchison Telephone (Macau) Company Limited, a subsidiary of HTHK, to introduce i-mode service in Macau in the near future.
ò Motorola announced the availability of the new 3G MOTORAZR maxx V3 i-mode in Hong Kong. MOTORAZR maxx V3 i-mode is the first 3G handset that supports the brand new i-mode services launched by 3 Hong Kong. Featuring the perfect blend of broadband-like speed, dynamic multimedia capabilities and cutting-edge design, MOTORAZR maxx V3 i-mode offers users the fastest access to the i-mode mobile entertainment world at the speed of up to 3.6Mbps. With just one click on the dedicated i-mode button, customers can enjoy the world of mobile entertainment brought by i-mode services from 3 Hong Kong.
Singapore/Malaysia/Philippines/Indonesia
Mobile/Wireless
ò Maxis of Malaysia announced its tie-up with Globe of the Philippines to introduce what it called the world's first mobile international money transfer service called M-money. Under the arrangement, Filipino workers in Malaysia can now remit money to their families back home under a new mobile phone money transfer service unveiled by Malaysia's top mobile phone operator Maxis. Under the system, Maxis customers can wire up to 500 ringgit ($143) per transaction to Globe subscribers in the Philippines, who can retrieve the money at Globe's 6,000 outlets.
Telecommunications
ò According to Standard & PoorÆs, SingTel and News Corp. will return to Australia's benchmark sharemarket index, with News Corp making a comeback later this month after an absence of more than two years. S&P said it was changing its rules to allow foreign domiciled companies with a secondary listing in Australia to be included in the benchmark S&P/ASX 200. Singapore-based SingTel, the owner of Australia's second-largest telecommunications carrier Optus, will be reinstated to the index under the changes, which is to take effect on June 15.
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