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  • Taiwan's DVD Industry Facing Competition from Japan, China
  • December 18, 1998 (TAIPEI) -- Taiwan's DVD manufacturers are encountering higher levels of competition from rivals in China that are effectively bolstering their production capabilities.
    And because Japan's DVD technology is stronger than that of Taiwan, local DVD makers are facing more intense competition with foreign companies.

    Statistics from Taiwan's Photonics Industry and Technology Development Association (PIDA) show that China now has around 23 DVD production lines. Manufacturing in China is making rapid progress, according to the association.

    PIDA analysts said that all 23 DVD production lines in China are in the form of joint ventures.

    A DVD factory with investment from a Chinese firm and Tokyo-based Toshiba Corp., for example, began operating in July. It is expected to register a monthly output of 1.5 million to 2 million DVD units in 2000.

    Analysts said that some of the foreign partners also cooperate with Taiwan's manufacturers.

    Projections from China indicate that in the 2000-2004 period, annual demand for DVDs, SVCDs, VCDs and CVDs will likely be around 15 million units for each product.

    Japanese companies are expected to place orders in China and then sell the products in markets around the world.

    Taiwan's major strength in the global DVD market is its capabilities in mass production. However, the local DVD sector is facing more pressure due to challenges from Chinese rivals.

    Taiwan-based producers believe that the problems now seem relatively small. But when the prices of DVD players are reduced and more software is available, competitive threats from China will become much more apparent, the PIDA analysts said.

    (Commercial Times, Taiwan)

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    Updated: Thu Dec 17 23:16:32 1998 PDT