LSI's win is in the wrong Province. Guangdong...................
Guangdong to head DVD production
China Daily
GUANGZHOU _ As one of China's key centres of electronics manufacturing, Guangdong Province is to spearhead the development and production of digital video disc (DVD) equipment, says a leading industry official.
The provincial administration will attempt to keep the development of the DVD industry healthily on track and develop it into a new growth point of the electronics sector, one of the province's three pillar industries, said Luo Jiansheng, director-general of the provincial electronics and machinery industry department.
DVD is the world's state-of-the-art visual and audio technology, and DVD players and discs have promising market prospects both at home and abroad, Luo said.
Guangdong boasts several advantages that will help it realize its blueprint, he said, including easy access to international DVD technologies and global DVD market information, as well as the headway the province has already made in DVD development.
Guangdong is the sole domestic producer of DVD discs.
"With joint efforts, we will be able to avoid duplication of construction and introduction of DVD projects, and prevent electronics manufacturers from rushing headlong into the sector," he said.
"And with concerted efforts, we will be better placed to develop and manufacture crucial DVD components and parts, to bargain with our foreign counterparts, and to avoid undercutting in a fight for market share," Luo said.
The experience of China's video compact disk (VCD) and colour TV manufacturing industries serves as a warning to the fledgling DVD sector. Lack of macro-control resulted in a dogfight for market share.
China last year turned out about 20 million VCD players. However, VCD player manufacturers had to resort exclusively to imports for all their crucial components, sacrificing the lion's share of profits to a few international conglomerates, Luo said.
He said the provincial authorities are stepping up efforts to conduct studies into the DVD industry, and will soon decide on the best DVD player designs for mass production.
The authorities will offer financial as well as policy support to the industry in the development and production of key components as well as DVD discs, he said.
(Copyright 1998)
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