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Market Intelligence In the News USITO Resources USITO Events

May 13 , 2005

China IT Weekly Briefing
USITO: the voice of the U.S. information technologies industry in China


Market Intelligence

Features

Shanghai TV Gets IPTV License

SARFT announced May 10 that Shanghai TV under the Shanghai Wenguang Media Group (SMG) has been granted an IPTV operating license to broadcast audio and video programs via Internet Protocol (IP) to TV sets and handsets. A Shanghai Wenguang spokesman said that Wenguang has received two licenses, one for TV set terminals and one for handsets. The third type of license is for computer reception of TV.

According to the “Management Methods on Audio and Video Broadcasting over Information Networks Including the Internet,” or SARFT Document [2004] No. 39, operators must receive a network audio and video broadcasting license before they may send programming over the Internet. Three different licenses are available depending on the type of terminal used.

Wenguang Group is reportedly in discussions with China Mobile about providing TV to mobile phones.

Another expected IPTV operator, China Central TV (CCTV), is working with China Netcom and China Telecom to launch IPTV trial services on 80 channels in eight provinces. CCTV expects to obtain the second IPTV operating license in the next few months.


Government—but not Market—Loves “Homegrown” Processor

Beijing Longxin (BLX) IC Design Company, the major manufacturer of Central Processing Units (CPU) for computers, with the Chinese Academy of Sciences (CAS) has released the “Godson II” microprocessor, which CAS claims is as good as Intel’s Pentium III and surpasses VIA C3. At the same time, CAS and Jiangsu Menglan Group signed an agreement for strategic cooperation to establish the CAS-Menglan Godson Industrialization Base to commercialize Godson microprocessor-based products.

BLX IC Design, the creator of Godson, was formed in 2002 by four investors, including Jiangsu Zongyi Holdings at 49%, CAS at 30%, and Beijing Huibo Qingzhou and Beijing Zhihaolian Technology, with total registered capital of RMB 100 million.

The precursor of the chip was the Godson I, issued in 2002 to wilting market performance. Chinese server manufacturer the Dawning Information Industry Group announced it had adopted the Godson I in a server, but the server series saw limited production and has been discontinued, according to a server engineer in Dawning Group. According to a Dawning sales agent, there is limited market demand for the server with Godson I. In 2003, the Godson I did not make the final cut for Beijing government procurement, since the clock speed of 266MHz did not meet the minimum requirement of 400MHz.

                                                 China CPU Market  2001--2004

Market Shares

2001

2002

2003

2004

Intel

90%

84%

83%

74%

AMD

5%

8%

9.5%

18%

Via Tech

2%

3%

3.5%

4%

Chinese processors

0

0%

1%

1%

Others

3%

5%

3%

3%

                        Sources: Chinese media, CCID

Efforts to develop a “completely Chinese” microprocessor have been heavily promoted and subsidized by the Ministry of Science and Technology, Ministry of Information Industry, and localities as well as universities and government-affiliated research institutes. The CAS-Menglan Godson Industrial Base has been granted RMB 30 million Jiangsu, Suzhou, and Changshu governments. The Jiangsu government has proposed providing RMB 300 million to the Godson project, according to a report from Menglan Group’s official website.

Companies started in 2002 to adopt the low-price Godson I, Fangzhou, and Haixin. In 2002, CAS, Haier, Great Wall, Chinasoft, Dawning Group, and Redflag established the Godson Industry Alliance to commercialize Godson. More companies involved in the domestic CPU industry chain achieve more applications of domestic CPU products. Recently, Haier Group launched its tax control machine with Godson II CPU, and Langchao Group also launched server with Godson II.

                                                    Domestic Microprocessors

General-Purpose Microprocessor

Developer

Applications

Launch

Godson

BLX IC Design

PC and Sever

Sep., 2002

Embedded Microprocessor

Developer

Applications

Launch

Vimicro series (Xingguang)

Vimicro Corporation

Digital Photo Processor

Mar. 2001

Arca (Fangzhou)

Arca Technology

Network Computer Processor

Jul. 2002

Hisys (Hanxin)

Shanghai Jiaotong University School of Microelectronics

Digital Signal Processor

Feb. 2003

FM series (Shenwei)

Shanghai Fudan Microelectronics

Auto control, communication, Financial electronics products

Nov. 2002

LHWT series (Wantong)

LHWT Microelectronics Inc.

PC and Server

Sep. 2003

JadeBird microprocessor

Beida JadeBird

PC and Communications

N/A

Unity 863 SOC

Peking University Unity Microsystems Technology Ltd.

Server and electronics products in government and universities.

Dec.200

Sources: SINA and ENET.com

The Godson II is positioned as a low-end CPU alternative for set top boxes, as well as application processors for handsets. Li Guojie, chairman of BLX IC Design and director of the Computing Institute of CAS disclosed in Godson II rollout press conference that High-performance computers and servers, which international IC giants Intel and AMD specialize in, are not targets. “Godson I is six years away from those leading CPUs, while Godson II is four years away, but they can work very well in low-end applications,said Li Guojie.

Li Guojie claimed that the Godson II makes it possible to decrease the price of a personal computer to RMB 1,000 (US$121). “We’ll enable 800 million Chinese peasants to afford PCs,” he said.

USITO Briefs

CCSA Working on 3G Frequency Research

The Wireless Communication Technical Committee under the China Communications Standards Association (CCSA) announced the establishment of the “Frequency Working Group” (WG8) to study ways to minimize frequency interference in third-generation mobile telecommunications. Li Jinchun, chief engineer of State Radio Supervision Center, is the group leader.

 WG8 has identified 15 projects in GSM, CDMA, PHS, SCDMA, RFID, WiMAX, and UWB. 
 


In the News


Please note: the following links have been collected from both English and Chinese-language third-party news sources, and the news summarized in English by USITO for your convenience. All clickable links are active at the time of this mailing.

Government & Regulations

Anti-monopoly law: A Commerce Ministry official disclosed that the draft anti-monopoly law has been submitted to the State Council for review, expecting that the law may be promulgated in late 2006. 5/12/2005 sina.com

Hardware & Software

Samsung to cease producing laptops in Korea: Samsung  is planning to manufacture laptop products in
China instead of in Korea. In April 2005, Samsung shut down its laptop manufacturing facilities in  Suwon, Korea, according to a Samsung spokesman.
5/12/2005 sina.com

Dell selling low-price PCs: Dell has launched a personal computer retailing for RMB 2,999 (US$364) in China. Dell competitor Lenovo released “rural computers” priced at RMB 2,999 in the middle of 2004. 5/12/2005 sina.com

Telecom & IT

UTStarcom cutting 1,400 jobs: Telecom gear maker UTStarcom announced a plan to cut 1,400 employees, or 17% of its global work force, owing to shrinking markets for personal handyphone systems (PHS). 5/12/2005 sina.com

Unicom to buy 7 million handsets: Mobile operator China Unicom is planning to purchase 7 million low-priced CDMA handsets. Unicom updated its CDMA networks last year to provide third generation services. 5/12/2005 sina.com

Satcom sells sub’s equity: Sino-Con Telecom Group will buy 39% equity in Satcom’s subsidiary China Satellite Navigation and Communication Co. Ltd. for RMB 100 million to explore the satellite navigation market in China. 5/12/2005 c114.net 

Internet & Gaming

EA to release 15 handset games: Electronic Arts (EA) is planning to launch 15 games for mobile phone users. EA has suggested its strategic shift toward mobile games is a hedge against China’s rampant piracy. 5/12/2005 sina.com

A joint venture for MSN: Microsoft announced it formed a 50/50 joint venture, “Shanghai MSN Network Communication Technology”, with Shanghai Lianhe Investment. 5/12/2005 sina.com
 

 

USITO Event
Monday, May 16: SIA China Chapter reception. SIA China chapter members contact: juliaz@usito.org

Thursday, May 19: USITO Forum with MoFCOM Department of WTO affairs on IP in technical standards. USITO members contact: juliaz@usito.org

Friday, May 20: USITO Shanghai Lunch meeting on IPTV development. USITO members contact: juliaz@usito.org

Friday, May 20: USITO Policy Committee Meeting. USITO members contact: juliaz@usito.org