Profile: China Techfaith Wireless Communication Technology Limited (CNTF.O)

China Techfaith Wireless Communication Technology Limited (TechFaith), incorporated on June 25, 2004, is a holding company. The Company is a original developed product provider focused on the design and development of handsets and sales of finished products to its local and international customers. The Company operates in three segments: sales of products, handset design services and wireless software and application. During the year ended December 31, 2008, product sales contributed over 90% of its revenues, while wireless software and application was in the start-up stage and did not generate revenues.

Sales of products

The Company’s EMS providers engage in assembly and manufacturing operations and also offer testing services for the assembled printed circuit boards (PCBs), systems and subsystems. The Company’s products include feature phones, smart phones, wireless modules and data cards, and other components. Its wireless product lines include wireless modules and data cards for wireless connections. Wireless modules are devices that enable data communication through a cellular network to be used in various applications, such as global positioning systems, logistics management, wireless point-of-sale systems, traffic navigation systems and wireless security systems. The Company also also sells printed circuit board assemblies and other electronic components.

Mobile Handset Design Services

TechFaith provides production support to facilitate its customers' manufacturing and supply chain management processes. The Company provides three types of mobile handset design services to its customers: mobile handset design services based on existing platforms, successor model design services and mobile handset design services based on new platforms. All three types of design services cover all aspects of the design process, including industrial design, mechanical design, software design, hardware design, sourcing of hardware components and software, testing, quality assurance, assisting the Company's customers in obtaining requisite certifications, setting up pilot production lines and production support.

Wireless Software and Applications

In the course of providing handset design services, TechFaith has acquired the ability to design software solutions across a range of wireless communication platforms. Its software solutions include man-machine interface (MMI) and user interface (UI) software packages supporting a range of wireless communication platforms, and wireless application software, such as wireless application protocol (WAP), Java, multimedia messaging system (MMS), Web browser, synchronized markup language (SyncML) and DRM.

The Company competes with Arima Communications, BenQ and Compal Communications.