08.22.2001
ACM still mum on X-Box connection

• Development: ACM (2352) is still declining to comment on whether it has received DVD-ROM drive orders for Microsoft’s X-Box, but claims that 4Q01 DVD-ROM drive shipments will increase by 200k units per month compared to 3Q01.

• Analysis: According to Bloomberg, ACM says that while the company does not have a direct business relationship with Microsoft, some ACM drives are ending up in the X-box via other companies. We assume ACM is supplying drives to Flextronic, a major outsourcer for the X-Box device.

• Primasia View: Although contribution from any possible order would be insignificant in 2001 (we estimate NT$800m), the potential is huge as X-Box shipments could reach 10m units in 2002.