Ulrich Schumacher, chairman of German chipmaker Infeon Technologies, said that his company plans to invest US$1.2bn in China by 2007. Schumacher was in Shanghai to open his company's new China headquarters. Infeon would not give details of the plans, beyond saying that the total included projects already announced.
One of these projects is a joint effort with Chinese electronics manufacturer Huawei Technologies to offer low-cost core components and software for third-generation. mobile telephone handsets. The project is intended to bring down the cost of a basic handset designed around W-CDMAtechnology to the same level as phones using the current second-generation GSM standard.