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Samsung Elecdevelops core chips for DVDs
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 DVD players.

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.

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