SEOUL, June 14 (Reuters) - Samsung
Electronics, a unit of South Korea's Samsung Group [SAGR.CN], said
on Monday it had developed three core chips to be used in digital
versatile disc (DVD) products.
"Mass production of the chips is
set to begin in the second half of this year to be used in
Samsung's DVD players," a Samsung official said.
A company statement said Samsung
expects to produce 1.2 million units in 1999 and plans to expand
sales to China and North America in the second half of this year.
The chips would be used in the
radio frequency amplifier, digital server and data processor of
Local production of the chips
would help the company save about $150 million by 2002, it said.
DVD is a 12-cm, high-density
optical disc for storing and playing back video and audio signals.
It has greater storage capacity and higher sound and picture
quality than the compact disc or video CD.
The market for the devices is
forecast to grow at least 80 percent each year, reaching about
$200 million in 2002, the statement said.