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Wednesday, November 19, 2003
Infodisc to spin off DVD production


Infodisc Technology, one of the top two manufacturers of pre-recorded optical discs, will spin off its business division producing blank DVDs to form a 100% owned subsidiary called Infomedia.

Infodisc’s provisional shareholder meeting on November 17 passed and set December 19 this year as a tentative day for the spin-off. The move is prompted by the parent company’s optimism about the global DVD market and concern about potential conflicts of interest with existing clients.

Infodisc’s board called the first meeting to discuss the new organization on the same day as the shareholder meeting and elected Frank Tien, president of Infodisc, to be the chairman and temporary president of the new subsidiary.

According to Infodisc, Infomedia will invest NT$30 billion in a factory in Hwa Ya Technology Park located in Taoyuan County, northern Taiwan, in three phases. In the first phase, 72 production lines with a total monthly capacity of 30 million DVD+R/-R and DVD+RW/-RW discs will be completed in 2004.


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