BenQ is officially ridding itself of its digital camera business. The Taiwan-based computer component company is selling its digital camera-related research and development and manufacturing facilities to Ability Enterprise Co.

Ability has agreed to acquire BenQ’s digital camera-related assets at the book value determined on June 30, 2007. Approximately 70 employees, mostly comprised of R&D personnel within the digital camera business unit, will be joining Ability starting on June 1, 2007.

The deal is expected to be valued at under NT$100 million (US$3 million), a BenQ representative said in an IDG story. The transactions are expected to close on June 30, 2007.

“Digital camera is one of our most important and profitable product lines,” said Sheaffer Lee, President of BenQ Corporation. “Ability will remain as one of our most important strategic suppliers for future BenQ branded digital cameras”

“We are pleased to strengthen our partnership with BenQ.” said Roger Tseng, President of Ability Enterprise Co., Ltd. “It marks an important milestone for Ability, for which it completes our portfolio and further elevate the overall competitiveness of our R&D and manufacturing capabilities.”

The selling of its digital camera business is the latest in a string of recent efforts to turn around BenQ. In October 2006, BenQ announced that it has ceased funding its German-based mobile-phone subsidiary. Shortly after the announcement, the ex-Siemens affiliate filed for insolvency protection, later leading to the edge of liquidation.