Taipei, Jan. 3, 2008 (CENS)--Princeton Technology Corporation, a designing company of consumer integrated circuit (IC) in Taiwan, will acquire a 25% stake, totaling at NT$80 million, in Microlink Communication Inc., a subsidiary of Cheng Uei Precision Industry Co. under Hon Hai Group, according to company sources.]

The acquisition will make Princeton become the second-largest shareholder in Microlink, and effectively ally with Hon Hai Group. Princeton plans to shift some of its engineers to Microlink to collectively develop portable multimedia players.

Richard Chiang, chairman of Priceton, noted that his company bought 8 million shares in Microlink and will acquire options for another 4 million shares in Microlink in next five years. The cooperation between the two companies can help Princeton to reinforce its capability of developing software and ICs and to take Cheng Uei`s current clients for multimedia application solutions.

Chiang said that Princeton and Microlink will develop wireless projectors to tap the commercial market at initial, focusing its development on portable multimedia players, and will gradually launch new products in the future.

Princeton will pay NT$80 million for a 25% controlling stake in Microlink in January, 2008, and will further increase the stake to 33% after buying out another 4 million shares in the company.

Microlink, a vendor of system solutions, once decreased its capital to NT$240 million, and now plans to raise the fund by NT$80 million in cash to NT$320 million. The company will further work with a Japanese company to set up a new joint venture in the second quarter of 2008, in an effort to sharpen its capability of developing related software.

(by Steve Chuang)