Despite the delayed issuing of 3G licenses by China, Taiwan-based handset makers, including Inventec Appliances, Foxlink and BenQ, are preparing for production of GSM/TD-SCDMA dual-mode handsets in China.

Inventec Appliances, which is developing its GSM/TD-SCDMA dual-mode devices using 3G solutions from China-based Datang Mobile, is currently testing its TD-SCDMA handset in cooperation with the solution vendor.

While Foxlink is building a TD-SCDMA handset production line in China, the R&D unit of BenQ in China is also developing GSM/TD-SCDMA handsets, the sources added.

Evan Yu, CEO of China-based COMMIT, a TD-SCDMA chipset solution provider, contends that Taiwanese handset makers have the manufacturing capability to grab a major share of China's TD-SCDMA market, which has a potential market size of over several hundred billion New Taiwan dollars, through own-brand or OEM models.