Appendix B: VTech Computers, Ltd.

Site:: VTech Computers, Ltd.
23/F, Tai Ping Industrial Centre, Block 1, 57 Ting Kok Road, Tai Po, N.T., Hong Kong
Tel: (852) 2665-5266; Fax: (852) 2680-1120; e-mail: kan_leung@VTech.com.hk
Participants:: Kan W. K. Leung, General Manager, PC Division
Kenneth K. W. Leung, Quality Assurance Manager, PC Division

VTech Holdings, registered in Bermuda, is Hong Kong's largest manufacturer. VTech's mission is to provide innovative and high-value products to consumers through the application of technology to electronic learning, telecommunication, and computing products.
VTech's three product divisions are electronic toys and games, telecom products, and personal computers. Its strategy is to design, develop, and manufacturer a wide range of high-quality, innovative electronics products and components that fulfill the integrated learning, entertainment, telecommunication, and computing needs of its customers.
The 1995 multinational sales were $631 million (46.3% in toys and games, 30% in PCs, and 23.7% in telecom products). The United States accounted for 50.2%, Europe for 29.3%, Canada for 3.6%, and Asia for 16.9% of sales. Offices are in 13 countries with expansions in India, Mexico, and South America.
VTech invests $20 million in R&D annually, with 350 engineers in HK, 300 in China, and 100 overseas.

VTech's HQ and production facilities are in Hong Kong and China. VTech grew from a small manufacturer of single-chip microprocessor video games into a consumer electronics business. It has 10 years of ASIC experience.
VTech's home segment of SOHO (small office, home office) and parents concerned about children's education and learning is expected to triple by 1997.
Company strengths are in five key areas within the group: ability to apply technology to new product development; well-established distribution channels; strong alliances with business partners; sophisticated customer service and support; and a cost-efficient manufacturing base.

VTech's product showroom displayed PCs, toys/games, and cordless telephones, cable set decoders, and satellite receivers, ranging from low-end toys to high-end computers.
VTech and Playteck toys and games include the Talking Whiz Kid Genius, Super Color Whiz, and Alphabet Desk, which use human voice synthesizers and interactive response. AT&T and Toshiba are OEM customers of its 900 MHz cordless phone.
Computer products are sold under VTech's own Laser and VTech brands, plus OEM. Computer products include desktops, notebook and servers, video display cards, motherboards, and ASIC chips. ICs in PQFP, SOL, and PLCC packages use 300 I/Os.
The Dongguan, China, factory site is 2 million ft² with 14,000 employees. The company has ISO 9001 and ISO 9002 certifications.

VTech has a global network of research, engineering, and manufacturing expertise, supported by worldwide marketing and sales teams and distributors.
It pioneered the use of microprocessor technology in design and production of electronic toys and learning aids.
It has over 700 product development people worldwide in R&D facilities in the United States, Canada, UK, Hong Kong, and China. It averages 65 new products each year.

VTech's commitment to customers is to provide the most innovative products and highest value. Its market share of electronic learning aids is 70% in the U.S. and 80% in the UK.
It designed and produced the world's first digital 900 MHz cordless telephone (Tropez 900DX), capturing 50% of U.S. market share.

Published: May 1997; WTEC Hyper-Librarian