Winbond Establishes A New Company Dedicated to Multimedia IC Development

(Taipei News)Winbond Electronics Corporation today announced that, following an agreement made by Board of Directors, the Company will establish a new multimedia IC product design company.This new company will undertake the product research, development, design, marketing and sale of multimedia IC designs.

After careful consideration of current market dynamics, and in an effort to increase the competitiveness of its multimedia IC products, Winbond will locate the new company in the Science-Based Industrial Park in Hsinchu, Taiwan. The new Company has been tentatively named Cheertek Incorporation. Registered capital is currently in the amount of NT $400 Million and Winbond estimates that it will invest NT $200 Million towards the establishment of the company. Initially, Winbond will hold 99 percent of the Company's stock. To encourage employee involvement, employees will be given shareholder opportunities in the future when the Company adds additional capital.

Winbond currently estimates that the Company will be formally established in January of next year. The Company will concentrate on developing products for use in multimedia computer and home electronics like DVD player and CD-ROM. Initially, Winbond will grant its new Company authorization to sell Winbond's line of multimedia products and will also transfer approximately NT $1.2 Billion in annual sales. In addition, nearly a hundred of employees, located both in and outside of Taiwan, will be transferred to the new Company. Winbond will assign Dr. Archie Yeh, Winbond's Chief Officer of Strategic Development, to the position of President of Cheertek Incorporation.

As part of the Company's mid to long-term strategic research and development efforts, Winbond believes that this new company will increase overall Corporate competitiveness by combining product lines and lessening any internal competition for the Company's limited resources. Winbond also feels that existing market conditions, combined with the Company's current product development efforts, will enable Cheertek to make a beneficial contribution to Winbond. Overall, the new business is expected to enhance Winbond's competitiveness. 

    Wilson Wen
    Vice President of Administrative Center
News Liaison
    Mike Liu
    Deputy Director

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