Aug. 29, 2003

The Formosa Plastics Corporation, the parent company of Formosa Teletek is expect good in mobile telecommunication market so he invests heavily to set up Formosa Teletek Corporation. Formosa Teletek Corporation is formed in 2001, which products mobile phone communications components. However, our first product is a Bluetooth related product. In addition to Formosa Teletek invests in the production line to product Bluetooth Module for low-temperature cofired ceramics (LTCC) using the most advanced technology, we also design some Bluetooth related application products. Even though Formosa Teletek is just in entry level, the revenue is accelerated growth stability monthly.

We will release new product, which is Bluetooth Car Kit. The driver can use this device to dialing and receiving a call; moreover, this product is included speed dialing and voice dialing functions. Our Bluetooth Car Kit has LCD monitor, so the driver can see caller ID and phone status functions from monitor. Currently Bluetooth Car Kit's function is most and complete in the market from Formosa Teletek. The Bluetooth Car Kit electric side is tested ready at present. After the Bluetooth Car Kit pattern will be done on end of August, we will have Bluetooth Car Kit sample ready to give our customers. The customers can buy this product from any Formosa Automobile distributor. According to SIG report on July this year, Bluetooth Car Kit is being considered a killer level of application product. Therefore, Formosa Teletek is trying to be first one before other competitors releasing our multi-functions Bluetooth Car Kit.

We also arrange in pairs with Formosa Automobiles to develop Bluetooth Car Kit system. In the future, our R&D engineers is researching and designing the Bluetooth surrounding hi-fi systems that collocate with Formosa Plasma Display Corporation. We plan to use Bluetooth 5.1 channel audio transmitter embedded into Plasma Display, which reduces consumers' persecution in setup speakerphone when consumers buy a Plasma Display. Formosa Teletek will use Bluetooth technology to combine all of enterprise resource.

The first production plant of Formosa Teletek is located in Hwa-Ya Technology Park, Gueishan Shiang, Taoyuan County. The plant started to product Bluetooth module for using LTCC technology in May this year. Our production line for low-temperature cofired ceramics (LTCC) is an effective instrument to make profit. Formosa Teletek invests heavily in the production line for low-temperature cofired ceramics (LTCC) using the most advanced technology to make Bluetooth module. Our ceramics products feature high frequency, small font factor, low cost, high-temperature resistance and multi-layer structure. The LTCC technology will be indispensable in the communications component market. The Bluetooth related products feature also need small font factor, so we use LTCC technology to make Bluetooth module.

After we started production in May, Bluetooth module is already get certification from foreign customers. The first product is using National Semiconductor ship set to highly integrate on a ceramic substrate. The way can either save package cost, or reduce RF loss. It is attractive to market that we use LTCC technology to embedded passive component in ceramic substrate, so full Bluetooth function module size is only 10 mm x 14 mm. Moreover, Formosa Teletek will releasing another model of Bluetooth module on September, which also use LTCC technology and size is 10mm x 14mm. The small font factor of two models of Bluetooth modules is suitable to small size and lightweight requirement of application product, such as headset.

According to managers of Formosa Plastic Corporation indicated that Formosa Teletek Corporation has their own RF component design ability and the production line of LTCC. That is other companies cannot compete. Moreover, Formosa Teletek has developed in embedded software and every developed product has own source code. Formosa Teletek indicated that Bluetooth related product belong to consumer product. The relationship between product and end users is closely. Therefore, Housing and MMI interface design are key issues to any application products, such as Bluetooth Car Kit. The Formosa Car Kit has been spending a lot of times in modify software. The method of operation will also decide the product sales volume. Bluetooth technology could develop various application products. The creative product is important than price competition in the future.

The mobile phone market is still expected growth well for long term; moreover, Nokia and Sony Ericsson companies are pioneers for releasing Bluetooth technology. According to SIG statistical report, the mobile phone's sales volume is about 400 million in 2002 and Bluetooth mobile phone sales volume is about 20 million. The situation of number of Bluetooth IC's sales volume is about 40 million sets in 2002; however, Bluetooth IC will be large growth to 600 million in 2006. Bluetooth will be standard equipment in high-end mobile phone after the colorful monitor and digit camera. Therefore, we predict that the peripheral of Bluetooth mobile phone market would be wide range growth at that time.