June 29, 2000

Taipei - - Taiwan DVD ( digital versatile disc ) maker Infodisc Technology Co. Ltd. opened its second DVD factory in Taipei this week and announced plans to build another plant in Korea.

Infodisc received a big order from US DVD giant Warner Advanced Media Operations ( WAMO) which supplies pver one third of entertainment DVDs on the world market, an Infodisc official said.

Infodisc also plans to construct an fourth plan in Taoyan, a northern Taiwan city near Chiang Kai Shek international airport, he said.

Infodisc expects to raise around 6,5 billion Taiwan Dollars from the capital market, he added. The company's shares went up on t he Taipei Stock Exchange on the news of the WAMO order, in contrast to the generally sluggish Taiwan stock market.

Apart from DVD-ROMs, Infodisc also manufactures CD-ROMs and VCDs and presently concentrates on developing CD-RWs and DVD-RAMs.

KG Telecom and Yulon Motors Target Submarine Cable Market

Taipei - - Yulon Motors, oldest automobile manufacturer in Taiwand and KG Telecom Co. Ltd. plan to cooperate with U.S. based global Crossing and Level3 Communications to bid for licenses to lease submarine cable services.

Taiwans Ministery of Transportation and Communication announced that it will open the domestic market for submarine cable leasing in August. In order to qualify for licenses, bidders must proe that they are able to market circuit-lease services in their home countries. In the expectation of this business, many companies in Taiwan have already teamed up with international carriers, qualified for bidding. Rumors in Taipei have it that big name players such as AT&T, MCI Worldcom and Global one, all companies already operationg submarine cable businesses, are interested in the Taiwan market.

Taiwan to Prevent Counterfeiting of ROMs

Taipei - - Following a request from the US government, Taiwans Intellectual Property Office told Taiwan chipmakers to enforce a mask ROM chip marking system. All mask ROM chips must be stamped with identification numbers, enabling government agencies and intellectual property owners to trace fake products.

Around 60 Taiwan chip factories are affected by the new ruling. The US had previously requested that the ruling should also cover microprocessors, but Taiwan government officials refused because this would bother too many companies.

Asusteks Notebook Sales Below Expectations

Taipei - - Claiming shrinking market demands as majore resellers were not able to clear inventory of existingmodels, Taiwans Asustek Computer Inc. scaled down sales to 40.000 units in June, 10.000 below forecast, a company spokesman said. This represented a revenueof 5,5 billion Taiwan Dollars, he added.

The company also manufactures mothersboard, expecting sales of one million units in June, dow from a slightly higher forecast.

For the first half of 2000, the company will reach half of itsoo forecasted 2000 revenue of 32,2 billion Taiwan Dollars, the spokesman said. Asusteks notebook production is fully booked until August, prompting the company to expect exceeding the 50.000 unit markt in that month.