Digital-content firms get support

The government plans to strengthen the nation's digital-content industry by injecting capital from its Development Fund (開發基金) into two leading digital-content production houses -- Digimax Inc (太極影音) and Wang Film Productions Co (宏廣動畫).

"The proposed investments highlight the government's efforts to beef up the sector's international competitiveness," said Minister without Portfolio Tsay Ching-yen (蔡清彥), who co-convenes the science and technology advisory group in the Executive Yuan.

Tsay said that both deals are still pending since share price negotiations between the government and the companies have yet to take place. But he expressed optimism, saying that performance of both companies is well recognized in the sector since Digimax and Wang Film have 13 years and 25 years of experience in the industry, respectively.

According to the development fund's committee, Digimax wants to increase its capital by releasing new shares at NT$50 each, while the total sum of the investment is yet undecided.

Digimax's spokesperson was not available to elaborate on its proposal yesterday.

Wang Film's proposal entails setting up a new marketing company, tentatively named New Media Co (宏觀), with NT$2 billion in assets to promote animation-related projects, said Roger Tang (湯國屏), chief operating officer at Wang Film. That proposal is expected next week.

According to development-fund rules, a maximum 30 percent share in a proposed investment project can be purchased. The fund's committee yesterday expressed hope that both companies can source the remaining 70 percent of the investment before sealing the deal with the government.

Tang said that First International Computer Inc (大眾電腦), Mitac-Synnex Group (神通聯強集團) and some other venture capitalists have expressed strong interest in taking part in the establishment of New Media, of which Wang Film plans to retain a stake of between 25 percent to 30 percent while the government's development fund will grab a maximum 30 percent share at a cost of NT$600 million.

Shares of yet-to-be-established New Media are earmarked to be NT$17 each.

Tang said that the company was upbeat about the government's involvement in fostering the development of the industry.

"The sector has to upgrade from low-end manufacturing to creating its own brand," Tang said, adding that the government's financial support will help boost development.

Tsay said that the sector will be able to increase its production value from 10 percent to 50 percent if it enhances its value-added capabilities in creative design and marketing management in addition to pre-production.

Wang Film is one of the world's largest 2D production studios, having overseas branches in China, Thailand and Indonesia. The company specializes in the production of cartoons and feature films and has formed a strategic alliance with Taipei-based CGCG Interactive Inc (CG公司), one of the world's pioneer 3D animation production houses since 1998, hoping to expand into the world market.

Digimax, established in 1990, provides integrated services in the areas of 3D animation, motion capture, visual effects and new exploration into interactive media.