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To: Jeff Jordan who wrote (3161)2/25/1998 11:52:00 PM
From: Rachel M. Kuecks  Read Replies (1) | Respond to of 93625
 
From the CUBE thread:

To: Marty Van Acker (29915 )
From: John Rieman
Wednesday, Feb 25 1998 7:32PM EST
Reply # of 29946

Korea. Lots of Cube............................................

KOREA
3D boom speeds up combo card production <Picture>
Korean sources report sales for 1997 increased over those for 1996. As for sales for 1998, they give
optimistic forecasts that demand will grow considerably with the boom of 3D games and 3D video.

Many makers say that 3D programs require a lot of memory. They expect memory on cards to expand to 6M
or 8M in the near future. They predict the peak time for sales will be in the second half of 1998.

It is expected that Ram-bus DRAM will replace current EDO RAM or SGRAM. Makers forecast the cost of
SGRAM and RDRAM will fall sharply in future.

Many suppliers are preparing to add a DVD interface to existing combo cards because of the foreseen DVD
boom. The use of DVD is expected to take a firm hold in the high-end market during 1998 with the sharp fall
in price of DVD ROM drives.

Korean makers are all strengthening R&D in order to maintain a competitive edge in the combo card line. Their
differentiating quality comes from producing better GUI drivers and achieving zero-noise output for clean
video and TV screen displays, sources say.

Companies contacted

Jace Tech Inc.

Web: na
Fax#: 82-2-34748291 Kasan Electronics Co. Ltd
Web: pcvr.kasan.co.kr
Fax#: 82-3-43228500 Samwoo System Co. Ltd
Web: na
Fax#: 82-2-5495767

Memory increase predicted for combo cards
New software applications such as 3D games require more memory than ever, to cope with this the current
standard memory is 2M or 4M on combo cards.

From early 1998, the standard memory on combo cards is likely to increase to 6M. Kasan's BokJoo Yoo of
sales said: "Combination graphics cards will have a standard 6M of memory and separate mounted sockets for
expansion up to 8M or even up to 12M in the future. The market boom of 3D graphics applications in 1998
will boost the use of large amounts of memory."

KASAN
Established: 1990
Work force: 240
1996 sales: $47.5 million

Yoo pointed out that SGRAM on a combo card will be replaced with RAMbus DRAM that skips the use of
WRAM. He expected WRAM not to last because of expensive prices, and the sale of RAMbus type DRAM to
peak around the middle of 1998. "The speed of RAMbus DRAM is about 30 percent to 40 percent faster than
that of SGRAM in general. And the cost of RAMbus DRAM will fall sharply in the middle of 1998. The move
to RAMbus DRAM will be fast," Yoo added.

Samwoo System's overseas sales division senior manager, Tae Kyun Lee, said: "The 4M of memory on
combo cards will remain for the time being. Of course, I agree that the 3D game boom in 1998 will spur the
expansion of memory to 6M as the default in factory output. However, I believe the 3D game boom will come
late in 1998. This is because PCs are migrating to the Pentium II processor and this will delay the output of 3D
software." Jace Tech R&D division manager, GookNam Jeon, said: "I think 4M is enough for the operation
of a 3D graphics combo card. There are still many boards with 2M of memory. I also expect a large output of
3D games in 1998. All existing chips, except the ATI chip do not support expansion to 8M."

EDO RAM, VRAM replace SGRAM
Currently SGRAM is being used mainly for high-end combo cards. EDO RAM is still used for low-cost
models. Makers explain that the SGRAM is about two to three times faster than EDO RAM.

Lee from Samwoo System said: "SGRAM is also used even for 2D graphics cards. So use of it can be seen
across the board. In general, Rambus DRAM is about six times faster than SGRAM. With the falling cost of
RDRAM it is likely that this type of memory will become popular in 1998."

Combo cards set to replace VGA
All suppliers report that sales of combo cards are increasing dramatically and expect higher sales of combo
cards than single function VGA cards in 1998.

Samwoo System's Lee says that sales are growing sharply with the multimedia boom in the PC market.

Windows 98 is forecast to further boost the demand for combo cards. Yoo from Kasan said: "The standard
programs supported by Windows 98 will boost users' interest in combo cards."

JACE TECH
Established: 1989
Work force: 50
1996 sales: $7.5 million

Jace Tech's Jeon added: "Our sales for 1997 increased, thanks to the growth of demand caused by the PC
multimedia environment. We sold almost all of our combo cards with a built-in TV tuner."

Kasan's senior manager, Young Lim, reported that demand comes mainly from Japan and European
countries. "There is now also a small combo card supply market in Southeast Asia with strong potential for
growth," Lim added.

The TV tuner of a combo card is usually adjusted in advance for a particular country's TV broadcasting
frequency before shipment.

Some Korean makers differentiate their products by adding a TV Intercast function. The growth of products
with this added function is still slow. As a result, makers are not too concerned about developing the
TV-Intercast function. They forecast that it will be incorporated into combo cards late in 1998 as TV-Intercast
broadcasting is gradually extended in Southeast Asia. Jeon explained that TV Intercast is still not well-known.
He said that any maker could add TV Intercast to boards if they use the correct decoder chip. Samwoo
System's Lee said that the company has met the demand of increased overseas order volumes thanks to
successful marketing activities and buyers' recognition of the quality and price of the firm's combo cards.

Responding to the order increase from customers, Samwoo System expanded the firm's production capacity
from 60,000 units to 70,000 units monthly as of last November, and plans to raise it to 100,000 cards in
1998.

Makers focus on R&D to differentiate products
To maintain their competitive edge in the overseas market, most Korean makers have strengthened their R&D
activities, especially in driver design and noise-reduction. Lee from Samwoo System said: "Products from
each maker are mostly similar in functionality because they use the same solution provided by major chip
suppliers. The quality difference comes from the extent to which noise is reduced and the design of software
drivers. I believe a good or bad software driver considerably affects sales."

SAMWOO SYSTEM
Established: 1992
Work force: 80
1996 sales: $13 million

Samwoo System's R&D is focused mainly on the diversification of its combo cards, the creation of software
drivers that are easier to use and the reduction of noise. Lee added that current trends are focusing on
applications in the home, like Web-TV. The company is consequently working on technology that integrates
all home audio/video, computer and Internet applications into one combo card.

Kasan's Lim also said the upward sales curve of the company's combo cards is spiralling remarkably because
many customers recognize the excellence of system control via a well-designed GUI. All of Kasan's combo
cards have already obtained FCC, CE, and VCCI approval from Japan as well as the certifications of Dolby
AC3 in Korea.

DVD software to replace current hardware
The makers who produce DVD combo cards with a built-in DVD interface include Kasan, Dooin Electronics,
and Mythos Inc. Samwoo System has already developed a similar product but hesitates to release it. The
company is still looking at changing market trends.

The production of combo cards with a built-in DVD interface received a dull response in 1997, although
Kasan recorded successful exports of large volumes to America and Europe. The small number of DVD
combo card sales may recover in 1998. Some makers believe DVD will be the standard function on models in
1998. Others predict DVD hardware will be replaced with software in the same way that MPEG was
implemented with software because PC performance will be faster with the Pentium II in 1998.

Kasan's Lim added: "Sales of DVD-interfaced combo cards are expected to increase from the beginning of
1998. This is because DVD-ROM drives are likely to fall sharply in price to around $250. It is also predicted
that DVD titles will encourage output during 1998. With the production of DVD products by major
entertainment companies, DVD sales will peak around the Fall of 1998."

Samwoo System's Lee said: "I don't think the replacement with DVD software will be made in 1998. The
CPU clock speed should be over 266MHz at least for DVD software operation. However, PC trends will be
slower than expected throughout 1998. As a result, cards with a DVD interface will still be produced even by
the end of 1998."

To respond to the fast pace of change and the short life cycle in this line, Samwoo System has already
developed DVD circuits and cards, and is ready to add the technology to new combo cards.

Jeon of Jace Tech predicted that the DVD interface will eventually vanish because Pentium II systems would
be able to run DVD software. He predicts that the 1998 PC market will be transformed by the Pentium II
following a sharp reduction of the Pentium II price.

Multiple functions integrated on cards
When producing combo cards makers try to integrate nearly all available functions on to one board in order to
raise the performance ratio against price.

The combo cards from Samwoo System accommodate FM radio, sound surround, remote control and even
videoconferencing as well as a 64-bit graphics accelerator.

Kasan recently started shipping a new multimedia 3D graphics card: the Video Genius , which comes with a
DVD overlay interface and employs Trident's up-to-date 3D accelerator. The company produces the model for
the world market. It is sold in the domestic market under another brandname: WinX Perfect V. The card
incorporates the 3D Image 975 230MHz RAMDAC chip that produces a maximum refresh rate up to 160Hz,
and enables the user to carry out CAD and 3D graphics work without screen flicker. The DVD overlay is
supported even at 1,024 by 768 pixels.

The board comes with a built-in VMI port for multimedia extension, and is fully compatible with a DVD board
to enable the highest quality video playback. Unlike other products, the card supports the TV-Intercast
function. Kasan was registered with the IIG (Intercast Industry Group) in October 1997. Teletext is also
supported. A hardware 3D-acceleration function gives the highest performance figure among existing 3D
graphics acceleration chips, according to the company. Users can enjoy 3D games on a big TV screen using a
TV output port. A remote controller is also provided. On offer with the card is a 3D kit which contains Digital
Video Producer 4.0, 3D Graphics, the animation tool 3D/FX, and a 3D game. These graphics board kits are
distributed via Jazz Multimedia. Kasan took over Jazz Multimedia in early 1997.

Samwoo System offers a couple of combo cards, the VP5480TVR and the VG5465TV . The VP5480TVR
supports a TV tuner, an FM radio tuner, 200MHz RAMDAC and a remote controller for TV/FM radio and
CCVD. SGRAM is used on the card. Also available is a motion video capture function which captures images
up to 640 by 480 pixels in size and still full-screen 24-bit images. A TV encoder is optional.

The VP5465TV supports a 66MHz AGP interface. Major features include 64bit 3D graphics, a TV tuner, a TV
encoder for a TV-output port, 230MHz RAM DAC and optional FM radio. CCVD is also optional. Samwoo
System was scheduled to obtain FCC approval for its graphics combo cards in December 1997.

A PCI-bus multimedia combo board, the Star Vision , is offered by Jace Tech Inc. The board supports a
64-bit graphics accelerator, a TV-tuner, software MPEG, video overlay, optional CCFE caption, and optional
videoconferencing functions. Multichannel display of 16 TV screens is available.

Asian Sources Computer Products - March 1998