LSI Logic, Thakral Align to Develop DVD Player Optimized for Chinese Market - 09:19 a.m. Aug 05, 1998 Eastern
BEIJING, Aug. 5 /PRNewswire/ - LSI Logic Corporation (NYSE: LSI) and Thakral Corporation Ltd. of Singapore have formed an strategic alliance to co-develop the first Digital Video Disk (DVD) player manufacturing kit specifically optimized for the requirements of the Chinese consumer market.
The kit, which offers a production-ready set of hardware, software, debugging and testing tools, will let Chinese video player makers accelerate their transition from first-generation Video Compact Disk (VCD) technology, widely used in China, to products based on the worldwide DVD standard. Products based on the kit will provide full backward compatibility with the VCD units they replace, but will offer DVD's higher video and audio quality and superior user interface, allowing vendors to command higher prices and realize improved margins.
Development of the manufacturing kit is scheduled to be complete in summer of 1998. Thakral will begin manufacturing in its Shanghai facility in September, and the kit will be available to other Chinese DVD player makers in the fourth quarter. With reductions in board size and component count over previously available DVD player kits, the new kit is expected to enable manufacturers to market DVD players for a retail price of less than 2,000 RMB (approximately $240 U.S.).
Dipak Raval, LSI Logic's Managing Director for Pan Asian operations, said, "By leveraging LSI Logic's capabilities, Thakral is able to deliver an extremely compelling solution to its customers not only in China but also worldwide. The availability of DVD players that are affordable and play VCD 2.0 disks, together with the arrival of many DVD titles during the next few months clearly positions DVD as the logical choice for the consumer."
Alain Bismuth, LSI Logic's director of Consumer DVD Products, said, "Though VCD players will account for up to 20 million units sold in 1998 alone, Chinese manufacturers have been looking for a way to convert to DVD not only to boost their margins but because implementing a global standard will enable them to develop an export market. The LSI/Thakral DVD player manufacturing kit will let companies ramp up to volume production quickly and cost-effectively. It will also allow them to competitively differentiate their products with customized features such as a specialized look-and-feel. And Thakral's proven expertise in selling consumer electronics to the Chinese market ensures that the kit will precisely address that market's cost and performance requirements."
Said Mr. Inderbethal Singh Thakral, Managing Director of Thakral Corporation, "This is an exciting opportunity for us. The technological expertise of LSI Logic, along with our manufacturing and distribution capabilities will not only allow us to position Thakral as a leading supplier of affordable DVD players into the Chinese consumer, but will also enhance significantly our efforts to develop the market for DVD entertainment software, another core activity of our company. The Thakral group itself will be releasing over 300 titles of affordable home entertainment software on DVD format during the coming year and we understand that there will be over 1,000 titles available by the Chinese New Year. This will significantly enhance the choice availability to consumers and should speed up their adoption of this technology."
DVD Player Manufacturing Kit Components
The DVD player manufacturing kit is a high-performance solution for second-generation DVD players, providing complete manufacturing-ready specifications and hardware/software components, including DVD/VCD navigation software and test and validation software. The kit is based on the LSI Logic L64020 DVD Decoder system-on-a-chip, which offers superior video and audio playback, full compliance with industry standards, versatile and high-quality "trick modes" (e.g., fast forward and reverse, freeze frame, slow motion), and the industry's lowest available power consumption. The kit also includes the leading-edge DVD player drive from SANYO Technosound Co., Ltd., of Osaka, Japan. The SANYO drive features a local interface, which eliminates overhead required for ATAPI drives and facilitates implementation in consumer DVD players; and a built-in track buffer to increase overall cost-effectiveness.
About LSI Logic
LSI Logic Corporation, The System on a Chip Company(R), is a leading supplier of custom high-performance semiconductors, with operations worldwide. The company enables customers to build complete systems on a single chip with its CoreWare(R) design program, thereby increasing performance, lowering system costs and accelerating time to market. LSI Logic develops application-optimized products in partnership with trendsetting customers, and operates leading-edge, high-volume manufacturing facilities to produce submicron chips. LSI Logic is headquartered at 1551 McCarthy Boulevard, Milpitas, California 95035, 408-433-8000, www.lsilogic.com.
About Thakral Corporation Ltd.
Singapore listed Thakral Corporation Ltd. is a leading distributor of consumer electronic products in Hong Kong and China. The company markets and distributes more than 15 leading consumer electronic brands such as Aiwa, JVC, Panasonic, Sharp, Sony and IBM. Its sales network covers 149 cities in China, supported by 25 sales centers. In addition, Thakral replicates and distributes movie optical discs in China under license from major studios in Hollywood and Hong Kong. It also manufactures VCD's, DVD's and VCR's in Shanghai Thakral, one of the nine state designated VCR manufactures, and ISO 9002 certified company, as well as its "own brand" colour TV sets in Chengdu Thakral. SOURCE LSI Logic Corporation
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