Qiao Xing Universal: Redeployment of Low Cost Base Band Chip and Low Cost GSM Mobile Phone Handset Business
Qiao Xing Universal Telephone, Inc announced that after carefully considering the current stage of technological development in the Hui Zhou Cosun-Celbon Communication Technology Co.,Ltd (JV Company), the partners involved in the JV, have decided to temporarily suspend their low cost base band chips for GSM mobile phone handsets project in the JV company.
Huizhou Qiao Xing Communication Industry, Limited (HZQXCI), another subsidiary of the Company, picked up some of the orders originally intended for the JV. Rapid growth of 'COSUN' brand lower end mobile phone handset business in HZQXCI.
The JV Company was formed in August 2004 principally by XING's subsidiaries Qiao Xing Mobile Communications Company Limited, HZQXCI, and Celbon of Korea (Celbon). The business plan of the JV at that time was to develop low cost chips for mobile phone handsets and to produce low cost GSM mobile phone handsets. Soon after its establishment, a large number of orders came in from mobile phone handset distributors in China and abroad. However, because further time is needed to reinforce the stability of its GSM base band chips' technical performance, it was decided not to produce on a large scale at this time. The Joint Venture partners therefore decided that the project would be postponed. It would be resumed at a later date if or when technological conditions have improved to a point where this project is viable.
Source: press release
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