Taiwan's second-largest telecoms carrier, Far Eastone Communications Co Ltd, said on Tuesday it plans to launch its own-branded GPS device by the end of this year and hopes to sell three million units next year.

There are 6 million cars in Taiwan, so why not sell to half of them? Far Eastone's President Jan Nilsson told reporters at a media event.

The wireless global postioning system (GPS) device converges automotive navigation, mobile television, internet, mobile phone and MP3 functions, and Nilsson said the company had invested a substantial amount of money for the project.

He declined to give specific figures or the cost of the device.

Far Eastone joins other domestic technology companies, such as Asustek Computer Inc and GPS device maker Mitac International Corp in the fast-growing high-margin business.

The device would be made by Taiwan mobile phone and GPS design house Dmedia Systems Co, which produces for major telecom operators in Europe and the United States.

Among major suppliers, Mediatek Inc designs chips for GPS devices and United Microelectronics Corp (UMC) is one of the chip contract makers.

The device uses over 870 different components, and it's one of the most advanced products out on the market, said Dmedia Chief Executive Officer Daniel Shih.

Shih said the product used navigation processor services by Redwood City, California-based Centrality Communications, which in June was acquired by San Jose-based SiRF Technology Holdings Inc, a maker of chipsets for GPSs.

Far Eastone competes with larger local rival Chunghwa Telecom, and smaller player Taiwan Mobile.

Far Eastone shares ended 1.11 percent higher on Tuesday, lagging the benchmark TAIEX index's 1.42 percent gain.