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Article

Title: Korean Mobile Makers Race for Solution to 3G Chip Ban

Author: Palmer, Maija; Nuttall, Chris Article Type: Company
Source: Financial Times, p8(1) Publication Date: Jun 9, 2007
URL of Publication: http://www.ft.com

Some of Qualcomm's largest clients have started to review their options after the imposition of a United States ban on the imports of the organization's chips. LG and Samsung, handset manufacturers based in Korea, want to ensure that there will be no disruption in sales as a result of a decision reached by the United States International Trade Commission. The commission has banned the import of all new phones that contain chips made by Qualcomm because of a patent dispute. LG and Samsung are major customers of Qualcomm, and they are the hardest hit by the new ban. LG has the heaviest exposure to the CDMA market in the United States, and it hopes that it will succeed in getting the ban suspended until an appeal in the case can be heard. LG is partnering with Qualcomm, AT&T, and Sprint in petitioning the court to grant the suspension. Because the appeals process could take up to two years, the industry would have time to develop alternative supply arrangements. Samsung is working with its suppliers and customers to ensure that there are no disruptions in the supply of its mobile phone models in the future. The company is confident that it can do this. Samsung will either ask Qualcomm to modify its chips to remove the technology in dispute, or it will change chip suppliers. According to Geoff Blaber, analyst at CCS Insight, it would be very costly for LG and Samsung if they had to change their chip supplier.

Companies:
LG Electronics Inc QUALCOMM Inc
Samsung Electronics Co Ltd

Products:
Korea

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