CMC Magnetics Corp (CMC, 中環), the world's second-biggest manufacturer of recordable compact discs (CD-Rs), yesterday said its board had approved a proposal to spend a maximum of NT$400 million (US$12.1 million) to set up an optoelectronics affiliate as part of its latest diversification efforts.
CMC said the new affiliate would produce a wide range of optoelectronics products. No further details were released yesterday.
CMC shares rose nearly 1 percent to NT$15.2 yesterday, compared with local rival Ritek Corp's (錸德科技) 0.1 percent dip to NT$9.49 and the benchmark TAIEX's 0.11 percent gain, primarily owing to CMC's rising contributions from its affiliates.
CMC set up a solar cell manufacturing unit, Sunwell Technology Corp (
CMC's touch-panel manufacturing venture with Japan's Fujitsu Co Ltd, Transtouch Technology Inc (
CMC posted a net income of NT$211 million in the first quarter of the year, up 22 percent from a year ago. It has not yet reported second-quarter results.
Ritek yesterday reported a net income of NT$51.81 million for the first six months of this year on slowing demand.
Separately, CMC's board yesterday also approved a plan to inject an additional US$8.64 million into a unit in Jiangsu Province, China. The investment aims to expand production to meet demand for CD-Rs in China, the company said in a statement submitted to the Taiwan Stock Exchange.