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(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Taiwan's CD-ROM Makers Seek to Boost Market Share
  • January 25, 1999 (TAIPEI) -- Taiwan-based CD-ROM makers are devising strategies to increase their share of the global market, including setting up offshore operations, implementing corporate restructuring programs and seeking new marketing channels.
    Due to the fast-changing specifications of the product, CD-ROM makers have reported growing deliveries, but have seen no improvement in profitability.

    In 1998, many producers were forced to allocate loss provisions and work out new strategies in an attempt to improve operations.

    Pan International Industrial Corp. said it hopes to expand its presence in its marketing channels, and will work hard to obtain more OEM orders. The company's China plant started to ramp up production in May 1998, and its capacity has increased steadily.

    Lite-On Technology Corp. has restructured its operations. It is spinning off its electro-optical unit into an independent company, which will offer 15 percent of its shares to staff members. Also, the company closed its monitor factory in Malaysia and shifted production to China.

    Company officials said that Japan's move to pull out of CD-ROM production and make inroads into the DVD market has left plenty of room for Taiwan-based manufacturers. The Institute for Information Industry (III) forecasts that Taiwan will become a leading maker of CD-ROMs in 1999.

    (Commercial Times, Taiwan)

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    Updated: Fri Jan 22 13:59:00 1999 PDT