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Matsushita, NEC Plan China Venture
Posted: 04-Jun-2002 [Source: AP via Yahoo]

[Japan's two leading handset manufacturers have teamed up with China's Huawei Technologies Co. to form Cosmobic Technology Co. to promote 3G technology in China's growing mobile market.]

Tokyo -- Japan's Matsushita Communication Industrial Co. and NEC Corp. are setting up an $8 million cell phone joint venture in China. The Shanghai-based joint venture announced Monday also involves China's Huawei Technologies Co., which makes telecommunications equipment. The main goal is to promote next-generation handsets and technologies for China and the rest of the world, the companies said.

The joint venture, Cosmobic Technology Co., will license mobile phone technologies from Matsushita and NEC for other handset makers, they said. It will also develop mobile phone software.

Matsushita and NEC have long been rivals but they reached a partnership last year to work on next-generation cell phone technology together.

NEC and Matsushita will each take a 47 percent stake in the joint venture, while Huawei, based in Shenzhen, China, gets a 6 percent stake.

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