Sony boss: Taiwan remains important

TT: When are you going to introduce PSX, the PlayStation 2-based digital video recorder that hit the Japanese market in December last year, to the Taiwanese market? Also, as Microsoft Corp seeks to catch up to Sony's PS2 with its Xbox online, are you considering turning PS2 into an online game as well?

Ando: Basically, we have not decided to bring PSX to Taiwanese gamers yet because demand for DVD recorders is not significant here. The market is not mature enough for us to market the product. The market is too small compared to large ones such as the US and Europe, in which we plan to introduce the product in the second half of the year. As for whether we are going to develop PS2 online, we are studying the idea with our ADSL subsidiary, So-net. We will announce our plans once we reach a conclusion.

TT: What is Sony's strategy for the flat-panel business, which your company has shown a strong ambition to engage in?

Ando: Flat-panel displays, especially liquid-crystal displays [LCDs], are important for all Sony products, especially after the transition from cathode ray tubes to plasma display panels to flat panels. Our strategy is to introduce new products ourselves, to make unique products instead of massive ones. We have formed a joint venture through our S-LCD Corp with South Korea's Samsung Electronics Co to produce next-generation LCDs.

Although we will still count on suppliers to manufacture flat panels for us, we are maintaining our own Vega engine technology, which is the key factor in determining the quality of LCDs, to differentiate ourselves from competitors.

The capacity of the new plant will not cut Sony's outsourcing from Taiwan, as Sony currently has a 20-percent market share worldwide, and the new factory can only meet one-third of that demand. In addition to strengthening our relationships with local suppliers such as Chi Mei Optoelectronics Corp (奇美電子), we are also seeking to cooperate with other companies, such as Sharp Corp, NEC Corp, Hitachi Ltd and others in order to meet demand.

TT: Many Taiwanese companies, such as BenQ Corp (明基電通) and Asustek Computer Inc (華碩電腦), are keen to expand their brands internationally. Which one do you think has the best opportunity to become the next Sony?

Ando: I think there are lots of opportunities for Taiwanese companies to grow into global brands like Sony. I'm impressed by the power and diligence of these young enterprises, including BenQ and Asustek, and also Acer. If their businesses continue to grow as fast as they are growing now, I'm sure that the world market will be dominated by Taiwanese brands in a couple of years.

Actually, in the past, many Japanese companies had ambitions to become the next Sony, but no one ever succeeded. I guess different companies have different characteristics and will develop in their own way.