TAIPEI -- BenQ Corp.'s German handset unit is considering filing for insolvency after its board decided to halt funding to the division. BenQ's cellphone units in Brazil and elsewhere are also reviewing their financial positions, according to reports.

BenQ is Taiwan's large cellphone maker. Cellphones made up 36% of BenQ's second-quarter sales, up from 9% a year ago, when it acquired Siemens' handset unit, now called Benq Mobile GmbH & Co.

BenQ said the business won't turn profitable until the third quarter of next year at the earliest.

The company will continue to supply its own-brand of handsets in "selected markets," the company said.