FIC to develop cell phone, Smartphone business this year

Taipei, April 16, 2003 (CENS)--First International Computer (FIC) Group, a leading information technology (IT) conglomerate in Taiwan, recently claimed that it would more actively develop its cell phone manufacturing business this year.

FIC recently recruited several senior officials from top electronic conglomerates in Taiwan to lead the development of its cell phone business. The new recruits include an official from the FIC-affiliated Fi-Win Inc., who will head the cell phone R&D center at FIC, and an executive from Hon Hai Group, who will serve as chief technology officer (CTO).

Industry sources said that FIC would produce Smartphones, CDMA (code division multiple access) and third-generation (3G) handsets, and Personal Handyphone System (PHS) handsets.

The group has won technical authorization from Qualcomm of the U.S. and is expected to soon sign a cooperation agreement with Microsoft and Intel to jointly develop cell phones and Smartphones.

The sources said that FIC has begun aggressively contacting possible customers worldwide and is scheduled to begin mass production and delivery in time for the busy Christmas season this year. The group reportedly expects to win the first cell phone order soon and will first introduce Smartphone models.

In addition its cooperation tie with Intel and Microsoft, FIC's subsidiary Telepaq Technology Inc. has been authorized to use the Symbian platform for its future's handset production. Telepaq plans to market the Symbian-based models in mainland China. The company claimed that it has a cost advantage due to the relatively low authorization fee charged by Symbian.

The Institute for Information Industry (III) said that more and more IT giants in Taiwan are accelerating efforts to tap the Smartphone market with support from Microsoft and Intel. They include High Tech Computer Corp. (HTC), Mitac International Corp., Inventec Appliances Corp., and Wistron Corp. (formerly Acer Inc.'s design, manufacturing, and services operation).

The institute estimates that about 10 million Smartphones will be sold this year worldwide and the volume will soar to about 24.29 million units next year, outpacing sales of personal digital assistants (PDAs), about 19 million of which are expected to be sold next year.

The III said that there are three Taiwan-based original design manufacturing (ODM)-based makers of Smartphones in the WinTel alliance, including HTC, Mitac and Compal Electronics Inc. HTC has become the world's largest contract supplier of such products.