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BenQ shuts down Beijing handset R&D center

Posted: 20 Dec 2006 ?? ?Print Version ?Bookmark and Share

Keywords:handset? cellphone? BenQ? R&D center? Siemens?

Taiwan's BenQ Corp. will close its cellphone R&D center in Beijing as part of a reorganization of its cellphone business. About 400 engineers will be laid off.

The cuts come after BenQ recently decided to reduce its R&D force in Shanghai by 40 percent. The moves are part of a wider reorganization of its bankrupt mobile phone unit, BenQ-Siemens.

The company said it lost $600 million in the first nine months of the year, and intends to sell off some of its non-core assets in order to recover from the costly and futile effort to turnaround the cellphone business it acquired from Siemens last year.

In October, BenQ said that it would sell off some operations to improve its books, and would assess the impact of the unit's failure on other operations. That same month, it also laid off roughly two-thirds of the 3,000 workers in Germany associated with BenQ-Siemens handset development and production.

It has also decided to close cellphone factories in Brazil and Mexico, and consolidate its Taiwan and Suzhou cellphone production in its Shanghai facility by the Q3 of next year.

- Cai Yan
EE Times




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