The China Post staff
Victor Company of Japan (JVC), a leading international manufacturer of CD and DVD players, digital video printers, home theaters and other related products, recently announced that its orders placed with Taiwan component suppliers will increase to a total of 20 billion yen, or NT$6 billion, next year.
A 20-member buying delegation recently visited Taiwan, and met with representatives of around 150 local component suppliers. Members of the delegation were mostly from JVC’s headquarters in Japan and regional branches in Malaysia, Singapore and Hong Kong. Their schedule in Taiwan was mostly arranged by the Taiwan Electric and Electronics Manufacturers’ Association (TEEMA). A delegate was quoted as saying, JVC plans to increase its buying from Taiwan mainly because Taiwan suppliers offer good-quality, low-priced components. “It’s an effective way to help us reduce our production costs,” he added.
The components it plans to order from Taiwan include printed circuit boards (PCB), TFT-LCD displays, LED, connectors, switches, transformers, and other components of DVD and CD players, MP3, V8 digital cameras, and home theater products. Over ten of the company’s production plants in Asia will use electronic components from Taiwan.
The projected annual purchases of 20 billion yen for 2001 is double the 10 billion yen of last year. The dramatic increase in orders of Taiwan-supplied components is in line with the company’s new business strategy for the Asia-Pacific region. The company used to regard the Asia-Pacific region as just one of its production bases, but now it views the region as one of the most important markets in the world. JVC now plans to increase its regional supply by increasing the productivity of its Asia-Pacific manufacturing plants.