(By Elizabeth Tchii; STAFF REPORTER)

VIA Telecom, a subsidiary of VIA Technology Inc, is reported to have secured a deal to supply handset chips to Nokia Corp, the world’s leading cellphone maker, local media reported yesterday.

The Chinese-language Commercial Times reported yesterday that Nokia has finished its final phase of CDMA 2000 1xRTT chip testing and has designated original design manufacturer (ODM) partner BYD Electronics to design and manufacture a new model of low-cost handset using VIA Telecom’s semiconductor chips, planned for release in the first quarter of next year.

But the company yesterday refused to confirm the deal.

“We usually have no comment on such confidential matters,” a company public relations official Cynthia Wang said over the phone yesterday.

If the report is accurate, VIA Telecom would have beaten MediaTek Incto be the nation’s first chipmaker to enter the Nokia supply chain.

With cellphone saturation high in developed countries, all eyes are on business opportunities in emerging markets. Given the lower average income in those countries, low-cost cellphones have become increasing popular.

Recently, VIA Telecom had the good fortune of partnering with Cal-Comp Electronics and Communication Company earlier this year to manufacture low-priced handsets for release in India through the country’s telecom operator Reliance.

Also, following the announcement of a strategic alliance with China’s handset manufacturer Qiao Xing Mobile Communication Co, Ltd, VIA Telecom has confirmed that it will be supplying Qiao Xing with semiconductor chips for use in two types of CDMA cellphones which will be released later this year through China Telecom.

VIA Technology shares yesterday went up 4.90 percent or NT$1.05 to NT$22.50, a new high since June 27, despite the TAIEX’s sharp same-day decline of 195.76, or 2.70 percent to 7,000.74.

VIA Telecom is the chip supplier to cellphone companies such as LG, Motorola and some Chinese manufacturers.