To cut costs, Japanese makers turn to China for DVD player production

Article Abstract:

Japanese manufacturers are increasingly outsourcing the production of DVD players to China to cope with stiff price competition. China will produce as many as three million DVD players for Japanese manufacturers in FY 2000, as well as optical pickups and DVD mechanisms. China is an ideal site for the production of DVDs with its low labor costs and the absence of license fees. Among the Japanese companies with operations in China include Matsushita Electric, Sanyo, Pioneer, Funai Electric and Kenwood.

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Pioneer reshapes Shanghai subsidiary as maker of DVD players for U.S. market

Article Abstract:

Pioneer Electronics Manufacturing (Shanghai) Company Ltd (PSM) is now exporting DVD players to the US, after starting out first as a manufacturer of laser disc players, video CD players, CD changers and car stereos. The company was established by its Japanese parent in 1995 at the Shanghai Wai Gao Qiao Free Trade Zone. PSM has a monthly output of 10,000 DVD units, while its annual capacity reaches 150,000 units. It produces a complete line of products, ranging from optical pickups to DVD mechanisms.

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