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Portable, multimedia systems face bright future in China

Posted: 05 Sep 2003 ?? ?Print Version ?Bookmark and Share

Keywords:wireless communication? hdtv? lithography? hdtv+evd? dvd+rw recorders?

Wireless communication, HDTV and lithography are the technologies that will have the biggest impact on China's electronics industry over the next 3 years. Wireless communication terminals, HDTV+EVD players and DVD+RW recorders will all have a bright future in the market.

Although wireless communication terminals have already acquired a big user base in China, the market still has a great potential. What's unique is that the mobile phone has become a status symbol with a very short upgrade cycle. Technology advancements have also supported this market to a great extent. Existing technologies include GSM/GPRS, CDMA/1xRTT and PHS, while future technologies include SCDMA, TD-SCDMA, and WCDMA. A lot of domestic manufacturers have already been involved in the production of mobile phones, with some possessing in-house R&D capabilities, resulting to very competitive products. In addition, key domestic IC design companies are starting to emerge. Therefore we're quite optimistic that China's mobile phone industry will grow both in depth and in breadth in the near future.

Another promising product is HDTV+EVD player, which signals the coming of the high definition era in televisions. Most TV manufacturers will expand their HDTV line with existing products such as CRT-based HDTVs, projection LCDs, and plasma TVs represent this trend. For example, in the U.S. market where HDTV programs are not available, HDTV is still selling very well, mainly because the retail price is as low as $800. EVD players have a much higher definition than DVD players, and is also a good companion for HDTVs.

The third product is the DVD recorder, whose cost has come down to a level acceptable to most consumers (the retail price for DVD players has reached $399 or even lower), thanks to the continuous innovations in its key components: the CDRW and codec processors. Meanwhile, prices of DVD+R/RW storage media have dropped despite rising demand from consumers.

LSI Logic has two strategies for future market development. The first is to support China's own formats and standards, and to develop high tech products for China in a shorter time frame and in accordance with specific consumer needs. To achieve this goal, we're gradually increasing our local technology development capabilities.

- Fei Yang

Managing Director for China and Hongkong

LSI Logic Corp.

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