Sanyo Plans to Boost Optical Pickup Output Capacity Jan 20, 2004

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Sanyo Electric Co Ltd, Japan's third-largest consumer electronics maker, plans to more than double its output capacity of optical readers used in hot-selling DVD recorders in 2004/05.

The Osaka, Japan-based company said it would boost annual output capacity of DVD recorder pickups, which are selling well in step with rising demand for DVD recorders, to 35 million units in the business year starting in April from 15 million units this year.

"We've put a lot of energy into developing pickups and lasers for CD-ROMs, DVDs and now recordable DVDs," Sanyo President Yukinori Kuwano said. "Now we plan to significantly boost output."

Sanyo, the world's largest maker of optical pickups with a global market share of about 40 percent, is hoping to use its strength in key electronic components to secure an even bigger share of the booming market for consumer digital goods.

Kuwano said last week the firm would start selling DVD recorders later this year, entering a market in which larger rivals such as Matsushita Electric Industrial Co and Sony Corp are in fierce competition.

It plans to enter the U.S. market first and Kuwano said it was in talks with Wal-Mart Stores Inc. about placing Sanyo-branded DVD recorders at the retailing giant's outlets.

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