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Toshiba Bets on Chinese HD-DVD Manufacturers

China Business News, 2/01/08

Toshiba, leader of the HD-DVD faction, has said that it has no plans to sell HD-DVD technology in China. An informed source has revealed that a considerable number of domestic manufacturers will manufacture and sell HD-DVD disc players. Toshiba will not enter the market, but rather hopes to score hits against the Blu-Ray camp by stimulating domestic Chinese manufacturers to use HD-DVD technology.

Deputy director Lu Da of the Optical Memory National Engineering Research Center at Tsinghua University says that TCL (000100.SZ), Haier, Better Life Commercial Chain Share Co. (a.k.a. Bubugao) (002251.SZ), Tsinghua Tongfang (600100.SH) and other members of the "China HD-DVD Industry Association" will begin sales of HD-DVD players this year, with some companies to introduce products this March, and price points to be set at or below RMB 3000. The alliance is currently studying how to integrate the domestically produced AVS standard on HD-DVD decoder chips, but has yet to achieve usable results. Another potential problem is the question of HD-DVD discs, as there remains no guaranteed source for discs.

Keywords: HD-DVD Toshiba strategy disc player Optical Memory National Engineering Research Center Bubugao pricing alliance China HD-DVD Industry Association AVS Blu-ray DVD Haier hardware Lu Da standard Tsinghua Tongfang Tsinghua University 002251.SZ 000100.SZ 600100.SH

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