Nikon may outsource low-priced DSCs to Taiwan

extreme2 · 15th November 2003

Nikon may outsource low-priced DSCs to Taiwan
Jillian Shih, Taipei; Steve Shen, DigiTimes.com [Tuesday 11 November 2003]

Nikon plans to introduce low-priced DSC (digital still camera) models in 2004 and does not rule out outsourcing the products to Taiwan’s DSC makers, Shiro Itakura, managing director of Nikon Hong Kong, said in Taipei yesterday.

The expansion of its product lines is a response to the continued growth in global demand for DSCs, Itakura said at a press conference to introduce the company’s latest digital SLR camera, the D2H.

According to Itakura, global demand for DSCs is expanding by 30% annually, but growth in China is more spectacular, rising by 100% a year.

Sales of DSCs in China are expected to reach two million units this year, doubling from about one million in 2002, Itakura said.

To cope with the rising demand in China, Nikon has set up a DSC factory in Wuxi, Jiangsu Province, which began volume production earlier this year, Itakura said.

Even though demand in China continues growing, Itakura said that Nikon has no plans to expand capacity at its Wuxi plant in the immediate future. Instead, it will focus on upgrading products and training personnel to prepare for a possible expansion in the future.

Before capacity at the Wuxi plant is expanded, Nikon might outsource production to Taiwan given the manufacturing capabilities of Taiwanese DSC makers, said Itakura.

A source at Taiwanese DSC maker Primax Electronics acknowledged that Nikon is looking for OEM suppliers in Taiwan but could not identify how many firms have been contacted by the Japanese firm. If finalized, it would take about nine to 12 months for Taiwan’s makers to begin delivering DSCs to Nikon, the source said.

15th November 2003	#1
extreme2 Member Join Date: Jan 2002 Location: Lion City Posts: 708	Nikon may outsource low-priced DSCs to Taiwan Nikon may outsource low-priced DSCs to Taiwan Jillian Shih, Taipei; Steve Shen, DigiTimes.com [Tuesday 11 November 2003] Nikon plans to introduce low-priced DSC (digital still camera) models in 2004 and does not rule out outsourcing the products to Taiwan’s DSC makers, Shiro Itakura, managing director of Nikon Hong Kong, said in Taipei yesterday. The expansion of its product lines is a response to the continued growth in global demand for DSCs, Itakura said at a press conference to introduce the company’s latest digital SLR camera, the D2H. According to Itakura, global demand for DSCs is expanding by 30% annually, but growth in China is more spectacular, rising by 100% a year. Sales of DSCs in China are expected to reach two million units this year, doubling from about one million in 2002, Itakura said. To cope with the rising demand in China, Nikon has set up a DSC factory in Wuxi, Jiangsu Province, which began volume production earlier this year, Itakura said. Even though demand in China continues growing, Itakura said that Nikon has no plans to expand capacity at its Wuxi plant in the immediate future. Instead, it will focus on upgrading products and training personnel to prepare for a possible expansion in the future. Before capacity at the Wuxi plant is expanded, Nikon might outsource production to Taiwan given the manufacturing capabilities of Taiwanese DSC makers, said Itakura. A source at Taiwanese DSC maker Primax Electronics acknowledged that Nikon is looking for OEM suppliers in Taiwan but could not identify how many firms have been contacted by the Japanese firm. If finalized, it would take about nine to 12 months for Taiwan’s makers to begin delivering DSCs to Nikon, the source said.