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  • Taiwan's CD-ROM Drive Makers Shift Output to China
  • January 21, 1999 (TAIPEI) -- Taiwan-based CD-ROM drive makers are shifting more of their production lines to China to take advantage of the low labor costs and strong market demand in the country.
    Pan International Industrial Corp. and Lite-On Technology Corp. have moved most of their production lines to China and have transformed their Taiwan facilities into centers for research and development (R&D;) as well as test production.

    Lite-On Technology began to produce 20x and 24x CD-ROM drives in China in 1997. The company has been slashing production at its Taiwan factories since the third quarter of 1998, and it closed its factories in Malaysia in December.

    The company has all of its CD-ROM drive and monitor production in China, with CD-ROM drive output reaching 700,000 units a month.

    Pan International also has been using China as its production center, while conducting R&D; in Taiwan. The company's monthly output of CD-ROM drives is estimated at 1 million units.

    Actima Technology Corp., a latecomer to the CD-ROM drive market, has adopted a similar strategy. About 70 percent of the company's production lines are located in China. Actima has even expressed interest in moving its headquarters to China.

    Prices of 40x CD-ROM drives have fallen under US$40, and aggressive competition from Korean manufacturers is luring away orders for original equipment manufacturing (OEM) services. Faced with this situation, local CD-ROM drive makers believe that to maintain competitiveness and secure profits, they must operate most of their production lines in China.

    (Commercial Times, Taiwan)

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    Updated: Wed Jan 20 15:13:01 1999 PDT