According to DigiTimes, With Sanyo Electric and Sony expanding their overseas production capacity for digital still cameras (DSCs), Taiwan DSC makers are increasingly unlikely to receive OEM orders from Japanese DSC brands.
According to the Japanese-language Nihon Keizai Shimbun (Japan Economic News), Sanyo, the world's largest OEM maker of digital still cameras (DSCs), will invest 3 billion Japanese yen to establish a Vietnam factory, which will have an annual capacity of 1.2 million DSCs. Volume production will begin in May 2005, according to the newspaper.
Sanyo currently has four DSC factories in Japan, South Korea, China and Indonesia, and its total annual production capacity has increased from 11.5 million DSCs in 2003 to 20 million currently, the newspaper added.
Sony recently started operation of its new factory in Jiangsu Province, China. According to the Nihon Keizai Shimbun, the annual capacity is 1.52 million DSCs. Sony also has a factory in Shanghai.
Sony's expanding capacity in China means the company will be less likely to outsource production, the Taiwan vendors predicted. In addition, with Sanyo increasing its capacity, Taiwan vendors will find it more difficult to compete for OEM/ODM orders, the makers added.