The highly competitive consumer electronic 
                                    industry is also very fast moving, as IT and 
                                    telecom products continue to add more features 
                                    and turn more towards wireless. Computer and 
                                    printer makers, faced with the tough challenge 
                                    of selling more hardware in a saturated market, 
                                    are expanding competencies. The global mobile 
                                    device market has achieved its third consecutive 
                                    quarter of yoy growth exceeding 100%, rising 
                                    134.6% yoy to 8.4 million units in 2005. Mobile 
                                    phones have seen a quantum jump in the features 
                                    offered as they double up as MP3 players, 
                                    digital cameras, personal organizers, etc. 
                                    
                                    
                                    A shift to converged technology with basic 
                                    personal information management (PIM) functionality 
                                    is exerting pressures on companies to develop 
                                    a niche competency that will rehabilitate 
                                    growth in the handheld device market. These 
                                    emerging applications exert fresh demands 
                                    on materials and engineering, as the combination 
                                    of increasing functions demand more memory 
                                    space. Solid-state memory devices are shrinking 
                                    in size and will soon be small enough to fit 
                                    into the compact form factor of a mobile phone. 
                                    Demand from traditional hard-drive outlets 
                                    such as desktop and laptop computers will 
                                    get dwarfed by this demand and provide a significant 
                                    opportunity for plastic component suppliers. 
                                    Analysts estimate that by early 2006, 25 million 
                                    hard drives will be used in cell phones, which 
                                    will see a quantum jump to 500 million by 
                                    2010.
                                    
                                    The first example of a mobile phone incorporating 
                                    a hard drive is the SGH-I300 from Samsung 
                                    Electronics (Seoul), which comes with 3 GB 
                                    of storage on a disk similar to that used 
                                    in Apple's iPod mini. 
                                    Mitsui Chemicals' Grade PL8001 is a new grade 
                                    of thermoplastic polyamide resin (Aurum) that 
                                    targets hard-drive applications. The grade 
                                    contains carbon nanotube filler and boasts 
                                    excellent antistatic properties, as well as 
                                    superior processability. 
                                    Mitsui's Chemicals' cyclic olefin copolymer 
                                    is finding increasing application as the lens 
                                    material in mobile phones that are fitted 
                                    with cameras, prompting a capacity increase 
                                    of 600 tpa to 3400 tpa by the end of 2005. 
                                    
                                    Besides memory and optics, ETP suppliers are 
                                    developing compounds to boost the performance 
                                    of voice communication in mobile phones. High-dielectric-constant 
                                    compounds used so far suffered from high specific 
                                    gravity, difficulty achieving dimensional 
                                    precision due to large shrinkage ratios and 
                                    problems with thin-wall molding. Polyplastics 
                                    has developed a series of high-dielectric-constant 
                                    compounds based on PPS and LCP that employs 
                                    a ceramic filler, specifically targeting compact 
                                    mobile phone antennae. The compounds can also 
                                    withstand lead-free solder temperatures. 
                                    A polyamide copolymer (PA9T) of terephthalic 
                                    acid and nonane diamine from Kuraray with 
                                    heat resistance up to 300°C can also withstand 
                                    lead free solder temperatures, with low water 
                                    absorption-less than 1% compared with 2.6% 
                                    and higher for competing materials. Kuraray 
                                    plans a capacity increase from 3000 tpa to 
                                    4000 tpa by the end of 2005 in response to 
                                    increased demand for electrical and electronic 
                                    applications, including mobile phone connectors. 
                                    
                                    
                                    The other key drivers of this market are globalisation 
                                    of the market, recyclability and legal issues.
                                    In addition to global demand, regional legislation 
                                    has also plays a large part in determining 
                                    the grades specified by OEMs. Legal issues 
                                    continue to drive parts design and materials 
                                    choice as issues such as forced recycling 
                                    and strict limits on lead and brominated flame 
                                    retardants are similar across regions. 
                                    The WEEE (Waste Electronic and Electrical 
                                    Equipment) legislation that takes effect in 
                                    the European Union in July 2006, requires 
                                    OEMs to collect and recycle their products 
                                    at increasingly high levels. Enforcement of 
                                    the WEEE along with European laws strictly 
                                    limiting the use of lead and some flame retardants 
                                    has led many OEMs to shift entire product 
                                    lines to grades that are compliant with European 
                                    law, rather than managing multiple inventories 
                                    for different geographic markets. 
                                    The E.U.'s RoHS (Restriction on Hazardous 
                                    Substances) laws place strict limits on lead 
                                    and several other materials often used in 
                                    electronics manufacturing, forcing a reconsideration 
                                    on lead soldering. The legislation is complicated 
                                    as it does not stipulate that no lead can 
                                    be used; it does dictate that only very low 
                                    levels of lead are permitted in each part 
                                    or component. Some equipment, including servers, 
                                    compliant pin connectors, and light bulbs 
                                    likely will be given exemption from RoHS.