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To: DiViT who wrote (37404)	11/24/1998 5:38:00 PM
From: BillyG	Read Replies (1) \| Respond to of 50808

LSI Logic announces that it "may announce" new DVD decoder wins in China. Estimates of the Chinese market are for 20 million VCD players to sell in 1998, compared with only 2.5 million DVD players in the year 2000......... eet.com LSI Logic expects more decoder design wins from China By George Leopold EE Times (11/24/98, 4:23 p.m. EDT) MILPITAS, Calif. — LSI Logic Corp. expects to announce additional design wins in China for its DVD decoder chip, a company official said. Alain Bismuth, LSI Logic's director of consumer DVD products, said the company will disclose other design wins in China between now and the Consumer Electronics Show in early January. In mid-November, LSI Logic announced that Sichuan New Tech Digital Equipment Corp. (Shendu, China), a startup backed by the Sichuan provincial government, selected a system-on-a-chip decoder from LSI Logic for its initial entry into the DVD player market. The players will be compatible with China's large installed base of older players based on the video CD (VCD) standard, the partners said. The design win gives LSI Logic a leg up in the emerging Chinese DVD market, which is expected to take off during the 1999 Chinese New Year in February. The Chinese manufacturer expects to begin selling DVD players that use LSI Logic's decoder chip by the end of the year. Cost factors Along with backward compatibility, LSI said its design will help Chinese manufacturers overcome stiff cost barriers as DVD players are introduced. DVD makers want to introduce players at less than $300 by the end of this year. By the end of 1999, they hope to reduce the price to around $200, LSI's Bismuth said. China's VCD player market is expected to grow to almost 20 million units in 1998. Chinese VCD manufacturers plan to start volume production of DVD players in time for Christmas and the 1999 Chinese New Year seasons. The China Audio Industries Association, a Shanghai-based group, projects that the Chinese DVD market will hit 2.5 million players by 2000. As a result of the deal with LSI Logic, Chen Shi Ping, president of Sichuan New Tech Digital Equipment, said the manufacturer would speed up its final testing and validation process.