US sales threatened by DVD chip dispute
A United States probe into DVD player chip components could force manufacturers to switch suppliers or face exclusion from the vast American market.
The US International Trade Commission last week announced an investigation into 12 Asian companies and their US affiliates for alleged infringement of patents held by two US chip firms, Zoran Corp and subsidiary Oak Technology.
Companies named in the probe include the mainland's Jiangsu Shinco Electronic and Shinco International AV of Hong Kong.
According to a complaint filed on March 11, Zoran and Oak Technology allege DVD player and optical disc computer storage chips made by MediaTek of Taiwan infringe on three patents.
The complaint further identifies 11 companies that use MediaTek chips, including Asustek Computer and Lite-on Information Technology, both of Taiwan, and Creative Technology of Singapore.
Zoran and Oak Technology are seeking to block from the US market devices which use the MediaTek chips.
This would force those named in the complaint to find other chip suppliers should they wish to continue selling in the US market, which bought 21.9 million DVD players last year.
Zoran recorded US$78.54 million in sales to mainland DVD manufacturers last year, accounting for about 36 per cent of its total, according to the company.
The investigation opens a new front in the chip dispute between the US and China, as the US seeks to protect its domestic chipmakers.
Last month, the US filed a complaint with the World Trade Organisation, alleging a rebate on the value-added tax for mainland-made semiconductors discriminated against imports.
MediaTek is the world's largest designer of DVD chips.
Shinco International AV and MediaTek did not return calls seeking comment.
Zoran and Oak Technology have brought a separate patent infringement suit against MediaTek in a California court.
