Foxconn to develop TD-SCDMA phones

Cell phone maker Foxconn International Holdings (2038.HK) a division of top Taiwan electronics parts maker Hon Hai <2317.HK, said on Friday it will develop handsets based on the TD-SCDMA standard and expects its first orders when the technology is in use next year.

The parent of China Mobile -- the world's largest mobile operator in terms of users, catering to a market of almost half a billion -- is spending around $3.1 billion to build a TD-SCDMA network, which some expect to go into widespread commercial use in late 2007.

TD-SCDMA -- Time Division Synchronous Code Division Multiple Access -- is China's homegrown third generation mobile telecoms standard, offering faster Internet access than second-generation digital technology used by most cell phones. European and American firms are focused on the better established W-CDMA and CDMA2000 standards. But several local and foreign vendors are researching and rolling out equipment based on the Chinese technology.

"Right now our research and development of TD-SCMA devices is in its initial stages. But we already have a few clients who have expressed interest in TD cell phones," Foxconn spokesman Vincent Tong said by phone from the southern Chinese city of Shenzhen.

He declined to disclose the size of Foxconn's investment.

Foxconn makes phones under the brand names of global giants Nokia, Motorola, and Samsung.

Besides Foxconn, Taiwan's BenQ Corp. -- the world's sixth largest cell phone vendor -- has expressed interest in developing TD products.

Shares in Foxconn gained 4.52 percent on Friday to close at HK$23.10, easily outperforming a 1.27 percent climb on the benchmark Hang Seng Index. The stock has gained 5.5 percent over the past month.