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To: John Rieman who wrote (42375)6/23/1999 8:43:00 AM
From: BillyG   of 50808
 
Taiwan Aims to Become Self-Sufficient in Key DVD Components
nikkeibp.asiabiztech.com

June 23, 1999 (TAIPEI) -- Taiwan is fortifying its integrated DVD industry in an effort to become self-sufficient with key DVD components such as pick-up heads.

A number of local makers have received technical transfers from Taiwan's Industrial Technology Research Institute (ITRI), and are slated to launch pick-up head production soon.

Key DVD components include pick-up heads, chip sets, motors and discs.

In the area of chip sets, companies such as Acer Laboratories Inc. and Avid Electronics have started to wrap up production. Acer Laboratories, along with ITRI, presented the first MPEG2, DVD-controlled chip set that offers integrated functions allowing it to serve as a DVD player, DVD disc, as well as a DVD stereo.

Since more than 30 percent of DVD costs are derived from chip sets mainly supplied by Japan's Toshiba Corp. and Matsushita Electric Industrial Co., Ltd., Taiwan's self-sufficiency will help bring down production costs. Acer will supply domestic demand, with contract manufacturing expected to start in the second half.

An ITRI spokesman said production of key DVD components will be wrapped up before the end of the year.

Key components of DVDs and DVD-ROMs could generate NT$100 billion worth of production by the year 2000. Technical self-sufficiency is an indication that advances in the DVD industry will bring the DVD one step closer to an integrated system, getting rid of the previous dependence on Japanese supply. (NT$32.3 = US$1)

(Commercial Times, Taiwan)
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