11.07.2001
Elan's subsidiary to form strategic alliance with Divio

• Expecting growth potential in optical storage and communication segment, Elan's wholly owned subsidiary, Yi Tong Dian (unlisted), is signing a strategic alliance with Divio (unlisted), a pioneer in integrated digital video chip designs. Alliance should benefit Elan by shortening the learning curve in digital video chip design. However, we are concerned with intense competition in PC camera and DSC IC market, where Sunplus (2401 TT) holds a leading position. Nevertheless, we remain bullish on firm's telecom ICs, with the expectation that China will open its door for Type II caller IDs in 2002.