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Monday, January 17, 2005
BenQ resumes OEM production of DVD drives for Pioneer

BenQ recently landed an OEM order for 16x DVD-ROM drives from Pioneer, with shipments to begin later this month, according to local suppliers of components.

However, BenQ declined to comment on the report due to client confidentiality.

BenQ had originally been an OEM/ODM producer of DVD-ROM drives and DVD-RW burners for Pioneer but stopped after it established the joint venture Philips BenQ Digital Storage (PBDS) with Philips Electronics in 2003. Since then, Pioneer had shifted OEM/ODM orders to Asustek Computer.

Pioneer originally required Asustek use pick-up heads (PUHs), a main component of DVD drives, produced by Pioneer's business unit. However, the production cost of PUHs for Pioneer is quite high due to small volumes. In order to minimize the production cost of new 16x DVD-ROM drive models, Pioneer placed an OEM order with BenQ, which utilizes PUHs produced by Philips. Pioneer is globally the second largest vendor of DVD-ROM drives next to Hitachi-LG Data Storage (HLDS).

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