Memory-Tech of Japan will increase its financial investments in Shanghai United Optical Disc to produce prerecorded HD DVD discs for the Chinese market, while prerecorded disc makers in Taiwan and elsewhere "will continue to evaluate the feasibility of investing in China," according to industry sources cited by DigiTimes of Taiwan (paid subscription required to access story).
Memory-Tech reportedly will provide manufacturing equipment and technology to the Shanghai disc firm to begin production of pre-recorded HD DVD discs with an initial annual capacity of 2 million starting in 2007. The HD DVD discs will be of "China-specific versions," noted the published report.
Memory-Tech's investment was partially motivated by the expectation that the 2008 Olympic Games in China will result in an increase in demand for discs with pre-recorded HD content. But, the Taipei publication's sources point out, "because China still controls production of pre-recorded discs by foreign makers, Taiwanese makers must consider the risks of investing there."
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