NEC seeks to double Blu-ray chip sales in two years

NEC Electronics Corp has announced it will start sample shipments of large-scale integrated circuit chips for use in Blu-ray Disc players soon and it expects to double sales of its Blu-ray products in the next two years.

By pushing the world's first chips that integrate on a single sliver of silicon signal processors and memory to control graphics, audio and other functions, the NEC Corp unit aims to raise sales of its Blu-ray products to ¥40 billion ($378 million) in the year ending March 2011, executives said.

NEC Electronics plans to start production in August with a monthly output of one million units. The price will be set at ¥15,000 ($104) per unit. The company sees the global market for Blu-ray Disc recorders and players expanding fivefold over the next three years to 40 million units.

The market for Blu-ray Disc players will grow to 35 million units in 2011 from 6.5 million units in 2008, mostly in the United States and Europe, the company said. NEC aims to take over half the global Blu-ray chip market by March 2011 from an expected 40 percent at the end of March 2009.

Story filed 24 July 2008

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