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					                         16th of July, 1999




Creation of New Industry by
   Digital Convergence


  By Takashi Kubota, Hitachi, Ltd.
        Table of Contents
1. Transition of Industries From “Past” to
  “Future”
2. Typical Example of Digital Technology
3. Core Technology and Applications
4. World Electronic equipment Market
5. Acceleration of Industry Development
  & Conclusions
                   From Past to Present

                  PAST                                        PRESENT

                      Audio
     Calculator       Cassette                                 Consumer
                      Recorder                                 Electronics
LD Player                              Analog/Digital
                  Facsimile             Technology
PC          TV
                              Radio                 Information
 Telephone        OHP                               Technology     Communications
                          Stereo Set
 VCR
            Transceiver

            <Chaos>                                     <Partial Overlapping>
      Analog Technology                                 Analog/Digital Technology
          From Present to Future

        PRESENT                                    FUTURE

          Consumer              Digital
                              Convergence
          Electronics
                                              Consumer Electronics
                                              Information Technology
Information
Technology      Communications                   Communications


 <Partial Overlapping>                      <Completely Integrated>
  Analog/Digital Technology             Digital and Related Technology
-Typical Example of Digital Technology-
DVD (Digital Versatile Disc)(1)

Size       12cm / 8cm
              (0.6mm two discs bonded)

Capacity   4.7GB/side/layer
                (7 times bigger than CD)
           Max. 17GB/2 sides, 2 layers
            Movie/studio quality 135min.
            Data/10 years of a daily newspaper
                 e.g. Financial Times
DVD (Digital Versatile Disc)(2)
Objectives   ・ Full product compatibility
             ・IT & CE application
              Read only, recordable, rewritable, random access


Format       Created by 17 Companies
             including IT & CE industries
                    and motion picture industry
              USA, Europe, Asia and Japan

Promotion    DVD Forum, 204 companies
  DVD Creates New Business
                         DVD player


                                            Disc camera

 DVD-RAM drive
                                                             DVD recorder
                          ROM              VIDEO


DVD-ROM drive            RAM                    R

                                      RW
                                                              Car navigation

                          Multimedia PC



                                                          Web device
   DVD library (300MB)
        Emerging DVD Market
World DVD Market Forecast


                                                                  DVD-RAM



                                                                  DVD-ROM




                                                                  DVD-Video




                       (Unit: Millions of U.S. dollars, Data: EIAJ)
                     Core Technology
                              Entertainment
       Electronic program guide                 Interoperability HAVi
   Embedded CPU/Real time OS          Copy protection    Digital AV I/F
                     Image/audio compression & expansion
 Digital recording             MPEG, JPEG, MP3           Coding & decoding
                      Digital modulation & demodulation
                                                           Error correction
  Display devices
                           Core Technology                   Contents distribution
Graphical user I/F
                                                          Electronic commerce
   Encryption & decryption
Cryptography & authentication                                      CDMA
                                      World Wide Web
   Water mark, data hiding        Internet protocol TCP/IP        IMT-2000
                                            HTML
       Computers &
        Peripheral                                Communications
            Technologies & Applications
                     DVD-Video              Entertainment                               PDP
                                                                                             Disc
                            D-VHS
                                                                                            camera
                                                             Home
                                           Digital STB      theater                 Digital
                                                                                    camera
 Multimedia PC
                                                                                                           Electronic money
                                           Image comp.
                                          & exp. (MPEG)           Digital AV I/F


DVD-ROM/RAM                   Digital
                            mod.& dem.
                                                          Software            Dig ital recording



                             User I/F
                                           Core Technology                          Encryption
                                                                                                       Contents distribution
 Color
 printer                                                    LSI             Internet/Intranet
                                        Display
                                                     Embedded CPU
           Data projector
                              PC
                                                                                                           Web device
                                                                  PDA &                         Digital
                                                                  H/PC                          cellular
            Computers &                  LCD                                                    phone
                                         monitor
             Peripheral
                                                                      Communications
World Electronic Equipment Market

                                                       (123%)
                                                         1.6
                                (129%)                   Consumer
                                  1.3                    Electronics
             (110%)
              1.0
       0.9
                                                         Computers



                                                        Communications


                                                         Others




                    Unit: Trillions of U.S.dollars (Source: EIAJ)
             Acceleration of
          Industry Development
- High speed expansion of the industry through
  digital convergence

- New products derived from integration of industries

- Creation of new market

- Participation of different countries in
  various related industries

- Rapid development in every country in the world
             Conclusion (1)


The new IT industry resulting from the integration
of information technology, consumer electronics
and communications will benefit users all over the
world in the 21st century and continue to develop
extremely quickly and at a global level.
       Conclusion(2)


       The key phrase is:
“Integration of three industries
 through Digital Convergence”.
             Conclusion(3)

Japan has contributed to the world in the
manufacturing field (mainly in production
efficiency and product quality.)
Hereafter, we will try to provide a truly rich
life for people all over the world at home, in
the community and on business by utilizing
Digital Technology to the utmost.
   3
E=MC
                    3
         E=MC

                                   3
Economic growth = Merger of C
                Consumer electronics
                     Computer
                  Communications

				
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