Taipei, May 9, 2003

The transition from traditional analog TV technology to digital TV, will present no challenges and opportunities for Taiwan`s industry, the Institute for Information Industry (III),Taiwan`s government-backed IT think tank says.

Digital TV broadcasting is being introduced to more and more countries, with the USA alone having decided to go all-digital by 2006, with Japan to follow 2008 and Europe in 2010. The government of China recently announced that it would broadcast the 2008 Olympic Games digitally.

As most of the parts and components for digital TV technology, come from the fields of IT and professional electronics, while analog TVs are associated more with household items, this means that TV manufacturing is most likely to gradually shift from home appliance manufacturers to IT companies, experts point out.
Sales channels and program content for the two types of TV will also be vastly different.

According to the III, there is a clear trend toward IT ad electronic manufacturers entering the digital TV business.

One example of this trend cited in Taipei is the Quanta Group, which already is actively involved in thedevelopment of digital TV andhas reportedly set up a display-platform business division.

Mitac has not yet clearly announced a digital TV development project, but is active in the development of ITC products with digital singal processing technology and has long been studying the integration if IT and advanced home-appliance technologies.

Other strong entrants into the digital TV industry will almost certainly include Acer and Hon Hai, according to analysts in Taipei.

According to rumors, leading home appliance makers in Taiwan will not let the digital age pass them by. A number of Taiwan manufacturers, including Albatron Technology Co., Tatung Co., Proton Electroic co., Teco Electric and Machinery Co.. Sampo corp., Taiwan Kolin Co. ans well as Taiwan-based Japanese makers Matsushita Taiwan Co. and Sanyo co. have already stepped into the starting holes to make a run for the digital fray.

Proton, a Taiwan company know for sophisticated design, has already introduced its 29- 34-, and 36-inch digital TVs in the local market, and the response to this test has been encouraging.

Matsushita Taiwan is confident that interactive TV programming will play a vital role in the future digital TV market.