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Qualcomm in Taiwan pacts
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July 11, 2000: 7:56 p.m. ET
Wireless communications technology outfit lands two new customers
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NEW YORK (CNNfn) - Qualcomm Inc. on Tuesday inked licensing agreements for its wireless communications technology with two separate firms in Taiwan.
Without disclosing specific terms, Qualcomm said it has granted Taipei-based Cherish Telecom, a leading manufacturer of telecommunications devices in Taiwan, a license to develop and manufacture products based on its patented code-division multiple access, or CDMA, technology.
Separately, the San Diego-based company earlier in the day said it has entered into a CDMA license agreement with First International Computer, also of Taiwan, granting the company a license to develop and sell modem card products for CDMA and High Data Rate, or HDR, wireless applications.
Qualcomm owns the rights to CDMA technology, which competes primarily with another wireless communications standard called Global System for Mobile Communications, or GSM
Qualcomm (QCOM: Research, Estimates) shares ended 1-7/8 lower at 53 in Nasdaq trade ahead of the news. But they quickly recouped those losses in after-hours activity, where they were trading up 2-19/32 at 55-19/32.
 Tuesday's announcement follows a sharp sell-off of Qualcomm shares over the past two months, during which it lost half its value due to concerns over slowing sales in South Korea and setbacks in the lucrative Chinese market.
Cherish, which currently is the largest manufacturer of cordless telephone units in Taiwan, said it is focusing more on wireless communications. The company said it will use CDMA as well as GSM in its future products.
"We expect Cherish Telecom to make significant contributions to the rapidly expanding CDMA marketplace," said Marvin Blecker, Qualcomm's senior vice president of technology transfer.
The company said it is currently negotiating manufacturing agreements with companies in Korea, Japan and Europe, which it expects to be completed by September. 
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Qualcomm
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