Japanese Tech Stock Weekly Summary

The following is excerpted from IRG's weekly stock report:

Internet

• Japan is setting up a project to counter what it perceives to be the global dominance of Google (GOOG) and other foreign Internet services. According to the director of the information service industry of the countryfs ministry of trade, Japanfs competitiveness can still be found in its core technology even as it needs to create a new value-added service. The Japanese project is comprised of 10 partnerships, each tasked with a specific next-generation search function. Under the alliance, the government has partnered NTT Data with Toyota (TM) InfoTechnology Center and Toyota Mapmaster to create an interactive, personalized car navigation system. The other alliances have put together NEC (NIPNY.PK), Hitachi (HIT) and Sony (SNE) Computer Science Laboratories. For the project, the ministry of trade said it has allocated 14 billion-15 billion yen (US$123 million-US$132 million).

Mobile/Wireless

• Fujitsu (FJTSY.PK) announced the release of its smartphone exclusively made for the Japan market. The move marks the entry of the company into the smartphone market. The device called the F1100 is a traditional Windows Mobile slider phone with a 2.6 touch sensitive screen which is also used for fingerprint identification to unlock the keypad. The F1100 will be available on the NTT DoCoMo 3G FOMA network. Fujitsu said the device does not have GSM connectivity, which means that it cannot be used outside Japan. Industry sources said the company will be addressing that limitation in the future.

• Softbank Corp (SFTBF.PK), the Japanese mobile phone carrier, announced that it has added 188,900 net subscribers in August. The Japanese mobile phone carrier described the figure as more than what its rivals have registered for the fourth straight month in August. KDDI Corp, occupying the No. 2 slot, reported adding 158,500 users. Market sources indicated that NTT DoCoMo lost some 22,900 users.

Hardware

• Bandai Co. and Buffalo Inc. announced that they are releasing into the market a device that will make the computer safe for kids. The device jointly developed by the two companies is a "key" to be inserted into a personal computer's USB port that will not allow young children access to pornographic or other objectionable web sites. The key also functions to restrict what software the young user can use and at the same time impose time limitation on the use of the computer. The key comes in two models, one featuring Mickey Mouse and the other Winnie the Pooh. The device is made for children aged 6 to 9 and is scheduled to be on sale soon through major home electronics stores and other dealers for about 3,480 yen (US$30.6).

Information Technology

• NTT DoCoMo (DCM) announced that it has revived its plans to offer its data center services to Japanese companies based in Thailand through its wholly owned subsidiary NTT Communications Thailand. NTT DoCoMo previously offered data center services through a joint venture with Shin Corp before the company’s dissolution in 2001. During that time, the move was seen as part of NTT’s global data center strategies. According to NTT Thailand’s official, there are about 300 Japanese companies in Thailand without data center facilities, about 20 percent of which are expected to transfer to NTT’s service once the system is in place.

Semiconductors

• Advanced Semiconductor Engineering of Taiwan and Mitsui High-tec announced their entering into an agreement for cross-licensing and technical collaboration for Mitsui Hightec's hybrid manufacturing technologies [HMT] for packaging. Under the minimum five-year agreement, both parties will share intellectual property [IP] rights and technical expertise for the design and manufacture of HMT semiconductor packaging. According to an official of Mitsui, HMT is projected to be mainstream technology in the near future.

Telecommunications

• Flag Telecom, an international provider of bandwidth owned by Reliance Communications Ltd. in India, announced that it has awarded a US$1.5 billion contract to Fujitsu Ltd. for the construction of Flag's next generation network [NGN] submarine cable. Under the agreement, four new cable systems will be constructed across the Mediterranean, East Africa, Asia and the Pacific region. The project is set to be completed by March 2010. Reliance said the new IP (Internet Protocol) network over submarine cable will nearly double the length of the Flag global network from the current 65,000 kilometers to 115,000 kms.

Disclaimer: IRG is not responsible for the accuracy of the news compiled within this article, which is based on publicly available information.