MediaTek, Sanyo to Tap China's DVD Player Market
nikkeibp.asiabiztech.com
October 25, 1999 (TAIPEI) -- Taiwan-based MediaTek Inc. recently announced a
strategic alliance with Sanyo Electric Co., Ltd., with an aim to sell DVD players in
China.
MediaTek is a leading supplier of chipsets for CD-ROM drives, DVD-ROM drives and
DVD players. MediaTek and Sanyo will supply DVD chipsets and reading-heads,
respectively, for final assembly by a Chinese company.
Executives at MediaTek said that the manufacturing of DVD players is still largely
restricted by the royalties charged by patent holders of key technologies. Such
royalties reduce the profit margin of the product, and makers are thus reluctant to
devote large resources to production.
MediaTek believes that next year will be the start of "the era of DVD." Already, it has
developed its own DVD chipsets. When manufacturers of DVD players begin to
increase production, it will be ready with chipsets.
Esonic Technology Inc., Royal Information Electronic Corp. and Acer Peripherals Inc.
are the only Taiwanese companies that make DVD players. All are striving to expand
their market shares in both Taiwan and China, but due to high prices of products,
sales are slow.
Esonic Technology makes DVD players in Shanghai, and its product now ranks as
one of the ten most popular brands in China. The company said it will enhance its
marketing and distribution channels.
(Commercial Times, Taiwan) |
