Asia Optical Co., one of Taiwan's leading manufacturers of optical lens for digital still cameras, has announced its partnership with Flextronics International Inc., a major electronics manufacturer.
 
Asia Optical said it would cooperate with Flextronics to develop DSCs and accessories by setting up a new company, aimed at expanding contract 
manufacturing for clients.

 

Rumors are that Asia Optical would acquire the DSC unit of Flextronics. After considering investment risks, Asia Optical will set up a joint-venture to concentrate on DSC business by cooperating with Flextronics, a move not yet finalized according to Asia Optical spokeswoman S.P. Wu.

 

A domestic securities investment trust firm believed Asia Optical would be able to reduce investment risks by working with Flextronics, enabling it to land Kodak and Casio contract orders from Flextronics, as well as retain its existing client such as General Electronic Company.

 

After acquiring the R&D center of Kodak to tap the DSC sector a few years ago, Flextronics hasn't seen substantial growth in sales of DSCs; so it has no choice but to is . Faced with the deteriorated financial environment globally, Flextronics has no choice but sell its DSC unit or partner with someone amid the downturn.

 

Asia Optical predicted it would see conspicuous growth in profits if the prospective joint-venture adopts self-developed lenses.