03.09.2001
Acer restructuring making headway

• Acer Inc. (2306 'Hong Dian') has signed a letter of intent with Amkor (US) to transfer its 28% ownership of Taiwan Semiconductor Technology Corp. (TSTC, unlisted) for an expected NT$750m. TSTC is an IC testing and packaging firm in which Amkor has a 25% stake.

• The deal reflects Acer's commitment to simplifying its business and disposing of non-core interests as part of its restructuring plan.

• Acer sold 6.98m TSMC (2330 'Tai Ji Dian') shares yesterday for an investment gain of NT$341m. The company booked a NT$450m gain from the sale of 8m TSMC shares last month. Acer still holds 141m TSMC shares.

• February revenue rose to NT$6.65b from NT$5.05b in January (a short working month this year). Total sales in the first two months fell 28.5% YoY.

• Acer introduced its new logo yesterday and announced it will separate own brand name operations from OEM operations to establish two independent firms within two years. Acer forecasts sales of own brand products to reach NT$4.4b in 2001, up from NT$3.3b last year. It predicts the own brand segment will bring in NT$10m this year, from losses of NT$66m in 2000.

MarthaChen@Primasia.com +886-[0]2-2547-8873