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Tuesday, October 29, 2002
VIA subsidiary predicts rising chip shipments, landing Pioneer order


With the completion of primary product lines and an increasing number of clients, VIA Optical Solution (VOS), the optical drive chip designing subsidiary of VIA Technologies, predicted that its overall chip shipments would reach 1.7 million units per month by year-end. It expects to enjoy monthly revenues of NT$100 million in the fourth quarter.

Of the 1.7 million chip output, around 1.5 million units will still be CD-ROM chips, VOS said, while the remainder will consist of DVD-ROM and CD-RW chips, which only entered mass production in the third and fourth quarters, respectively.

Despite their later launch schedules, the DVD-ROM and CD-RW chips are expected to contribute significantly to VOS’s total revenues due to their higher product prices.

Meanwhile, VOS’s operation is also taking a more concrete shape with a growing base of customers, especially as it has landed international clients such as Pioneer, which has decided to adopt the company’s DVD-ROM chips. Small-scale shipments for the order will start next month.

Although Pioneer is currently VOS’s only customer for the DVD-ROM chip line, sources at optical drive companies indicated that the Pioneer order represents an important quality voucher as well as a great business opportunity for VOS, as Pioneer’s customers include major PC vendors like Hewlett-Packard (HP), Dell Computer and IBM. The adoption may help VOS to land more orders in the future.


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