Cogo Expands in Chinese Market – Analyst Blog

Cogo Group Inc. (COGO) announced its latest series of embedded solution design wins in the automotive sector. The new design wins will broaden Cogo’s presence in China’s rapidly growing automotive sector beyond its current partnership with BYD, a leading domestic auto manufacturer. 

The customized, embedded solutions and software design wins are targeted towards a leading Chinese auto-maker, Geely, and include a number of key applications including GPS navigation, in-car PCs, and an automotive “Blackbox” similar to those found in airplanes. Revenue from these new initiatives is expected in the fourth quarter of 2010.

China ranks number one in the world’s production of automobiles with sales of passenger vehicles reaching 1.11 million in April 2010, up 34% from the prior year period. Cogo expects these strong trends to continue not only in tier-one but also in tier-two and tier-three Chinese cities.

Cogo Group, Inc. is a leading embedded solutions and software provider for the technology and industrial sectors in China. The Company believes it acts as a proxy to China’s technology industry as it works with virtually all the major ODMs and OEMs in China. Cogo focuses on the telecommunications equipment, digital media and industrial applications end-markets for their customized design modules while also offering business and engineering services to their large telecommunications equipment vendor customers.