Semiconductors

• Elpida Memory Inc.’s (ELPDF.PK) venture with Taiwan's Powerchip Semiconductor Corp turned profitable in July-September on rising prices of DRAM. Taiwan firm Rexchip Electronics Corp, 52 percent owned by Elpida, has operating and net profits in five quarters as dynamic random-access memory prices declined 80 percent in 2008 in a battered chip sector. If the current recovery in chip prices continues, its profit will become more substantial. Elpida’s Tera Probe turned profitable in the quarter just ended, due to increase in demand for testing of mobile DRAM used in smartphones. Other investors in Tera Probe include Taiwan's Powertech Technology Inc, U.S. module maker Kingston Technology Co and Japanese tester maker Advantest Corp.

Hardware

• Oki Data Corp. is initiating full-scale sales of printers in the Chinese market as part of an effort to make up for slumping sales elsewhere overseas. The Oki Electric Industry Co. subsidiary had two overseas sales organizations for printers, one for Europe and the U.S., and one for other foreign countries. It will create a third sales team at its headquarters to oversee sales in China. The new team, which is also slated to cover sales activities in Taiwan, will formulate sales plans and conduct market research. An executive responsible for sales in Japan will be appointed chairman of Oki Trading (Beijing) Co., Oki Data's local unit in Beijing, and management-level personnel will also be sent from Japan to branches in Shanghai and Guangzhou. Oki Trading has begun using endorsements from table tennis player Ai Fukuhara, who is popular there.

By Ucilia Wang

Oerlikon Solar (OERLF.PK) is pulling ahead of Applied Materials (AMAT) in a race to dominate the amorphous silicon thin-film solar market, wrote Weston Twigg, a senior research analyst with Pacific Crest Securities, in a research note Monday.

By Ucilia Wang

Oerlikon Solar (OERLF.PK) has lined up a key sales partner for its Asian market: Tokyo Electron (TOELF.PK).

• • •

Hardware

• • •

Mobile/ Wireless

• The mobile-phone market is polarizing as the global economic fall prompts some consumers to trade down to cheaper devices and operators feed demand for high-end handsets by promoting them with financial supports. Nokia (NOK) Oyj is selling entry-level devices costing less than US$50 and advanced phones with satellite navigation, music and e-mail as fewer consumers consider mid-tier handsets. The global handset industry will shrink for the first time in eight years. Sony Ericsson Mobile Communications Ltd. (SNE), Motorola Inc. (MOT) and LG Electronics Inc. (LGERF.PK) have struggled to come up with hit phones or hesitated in their attempts to broaden their product offerings. Nokia, which ships 15 units per second, may boost its global market share to more than 40 percent in 2009. Samsung Electronics Co. (SSNKF.PK) will increase its market share and remain the second-biggest phone maker. Fourth-quarter profit at the unit that makes mobile-phones fell 42 percent from a year earlier, while revenue increased 43 percent, as competition drove up marketing expenses. Sony Ericsson, which has posted two consecutive quarterly losses and cut jobs, will refocus on pricier models.

• • •

Hardware

• Sumco Corp. (SUMCF.PK) slashed its annual outlook sharply, becoming one of the latest chip-related companies to be affected by a slowing economy. Cooling consumer sentiment ahead of the holiday shopping season has prompted makers of PCs, flat TVs and mobile phones to keep their inventories light, trimming demand for microchips. Sumco said its business environment was rapidly deteriorating as the financial market turmoil hits the real economy. Silicon wafers are used to make microchips. Sumco now expects its operating profit to total 65 billion yen (US$637 million) in the year ending January 31, 2009. Sumco also lowered its net profit forecast by 45 percent to 32 billion yen (US$340 million) for the current business year.

• • •

Hardware

• Sharp Corp. issued a profit warning for this fiscal year ending March, blaming a slump in sales of mobile phone handsets in Japan and weakness in liquid crystal display panel prices. The company cut its group net profit outlook to 60 billion yen (US$596 million) for this fiscal year from 105 billion yen (US$1 million) in its prior outlook in late April. The company also revised downward its operating profit outlook to 130 billion yen (US$1.3 billion) from 195 billion yen (US$2 billion). Sales are pegged at 3.4 trillion yen (US$34 trillion), compared with the previous forecast of 3.6 trillion yen (US$36 billion). That is nearly double the 45 billion yen (US$447 million) in operating profit estimated for the fiscal first half that ended September. The company said it would be too early for other businesses, such as solar batteries and home appliances, to be strong enough to more than offset the company's sluggish cellphone operations.