02.08.2001
Revenue generated by DDR chipset will depend of timing of popularity

• The performance of Acer Laboratories Inc. (5393 'Yang Zhi')'s DDR single chipset has had favorable reviews from local motherboard companies.

• Expectations in the marketplace are that Acer Lab. may be able to attain monthly revenue of NT$1b as DDR becomes a more popular of memory type. Acer Lab will require this contribution to achieve its 2001 revenue target of NT$8b, and hopes that DDR attains market acceptance during 3Q01.

• We doubt that revenue generated by DDR chipsets will meet the company's target in 2001. Pricing policies of memory manufacturers will be a key factor in the timing of DDR popularity, with this timing to significantly affect returns. We are cautious whether popularity will take hold in 3Q01 or 4Q01.

AngelLo@Primasia.com +886-[0]2-2547-8865