Taiwan's top mobile-phone maker, Benq Corp, said recently that because it has stopped financing its overseas mobile-phone operations, they should decide their own fate.

Spokesman Eric Yu made the statement in response to news that Benq - after it stopped funding its German handset unit - had stopped operations in Argentina, Paraguay and Uruguay and its operations in Chile and Brazil were in danger.

'After we declared on September 28 that we would stop refinancing Benq Mobile Holding BV in the Netherlands, the handset manufacturing and sales units under it could decide their own fate,' Yu said, referring to the Dutch holding company of the German unit.

'They should review their own financial position and consult lawyers to decide if they will carry on,' he said.

Taipei-based Benq founded Benq Mobile Holding after acquiring the loss-making unit from Siemens in October 2005 so Benq could finance its overseas mobile-phone manufacturing and sales units.

Since then, Benq Mobile had designed and launched two dozen lines of Siemens-BenQ mobile phones, but three weeks ago, Benq announced it would stop financing Benq Mobile Holding because it had lost 760 million US dollars on it.

Benq Mobile in Germany was the first to file for bankruptcy, leaving its 3,000 staff out of work. Its Dutch holding company, with fewer than 10 staff, and the Benq manufacturing plant in Brazil were still operating.

'As for the branches or subsidiaries of Benq Mobile Holding in Latin America, it is up to their board to decide the next step,' Yu said.

Benq said it would not abandon its mobile-phone business and its September 28 decision does not affect its production in China because the China plant is Benq's directly invested operation.

Because of losses, however, Benq has shut down its mobile-phone production lines in Taiwan early this year, and it now has only one handset production base - in China.

'We are restructuring and rebuilding our computer and logistics systems,' Yu said. 'BenQ will continue our handsets business, and we have not abandoned the European and Latin American markets.'