D&O ... Feb10

A semiconductor and light-emitting diode (LED) component manufacturer has set aside RM50 million for phase one of its two expansion projects planned this year.
The investment would be utilised for enhancing the equipment and facilities at the company's factory in Melaka as well as to complete its new factory in Laos. The second factory, expected to be completed by June 2010, would enable D&O Ventures to raise production capacity and expand export network.

They are eyeing to double up its production capacity through this phase one exercise and looking forward for more space in the LED global market, especially in terms of government projects in Malaysia.

D&O Ventures expected its new subsidiary in Japan, AE Opto, a television backlight module provider, to be a major contributor to the group's revenue this year. D&O Ventures owns 51 per cent shares of the company. It still export LED components for the company while AE Opto will produce the television backlight.

The company was very sure of AE Opto's contribution as global television manufacturers were eager on producing LED technology televisions rather than using mercury bulb.

Currently, the LED television production worldwide is five per cent annually. However, it is expected to increase to about 15-20 per cent of total production this year.

On D&O Ventures' foreign markets, presently, the company exported its products to six countries including Korea, China and India.

D&O Ventures owns two wholly-owned subsidiaries in Malaysia, namely Dominant Semiconductors Sdn Bhd and Omega Semiconductor Sdn Bhd. Currently, Dominant Semiconductors, the LED manufacturer, contributes more than 80 per cent to the group's annual revenue.