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Asustek to acquire 3 percent stake in chip designer Alcor

Asustek Computer Inc (華碩電腦), the world's biggest maker of computer motherboards, said yesterday it would acquire a 3-percent stake in chip designer Alcor Micro Corp (安國國際) for NT$120 million (US$3.67 million) via a private placement.

The move marked Asustek's second such deal this year, as it aims to cement its component suppliers. Asustek is also one of the world's leading laptop makers.

Last month, Asustek bought a 4 percent share in local keyboard chip designer Ene Technology Inc (迅杰科技) to further strengthen its partnership.

"Asustek will carry on this strategy in the future," an Asustek official, who declined to be named, said by phone.

In two filings to the Taiwan Stock Exchange earlier yesterday, Asustek said it and its fully-owned venture Asustek Investment Ltd (華旭投資) would purchase a combined 2 million common shares in Alcor at NT$60 each.

Alcor, which was founded in Santa Clara, California, in 1996, designs controller chips used in a wide range of electronics. It is now trading its shares on the over-the-counter GRETAI Securities Market.

Alcor intends to issue 7 million common shares to raise NT$420 million, which the chip design firm will spend on research and development and new equipment. Today is the deadline for investors to subscribe for the shares.

South Korean electronics giant Samsung Electronics Co could subscribe for the new shares, a local Chinese-language newspaper reported earlier this month.

Two other companies also announced yesterday they would purchase Alcor shares. Local memory module maker Transcend Information Inc (創見) said in a filing that it would spend NT$120 million on the purchase of 2 million Alcor shares, thereby increasing its stake in the chip designer to 7.55 percent.

Chicony Electronics Co (群光電子), a Taipei-based firm that focuses on computer software, input devices and peripheral equipment, said in a separate filing it would buy 1 million Alcor shares for NT$60 million, representing a 1.5 percent-stake in the chip design firm.
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