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Sunday, November 27, 2005
Lite-On IT Targets the Top


Lite-On IT has reportedly obtained OEM orders for PC DVD burners from NEC through its strategic-alliance partner Sony, according to reports from Taiwan.

Sony and NEC said last week they have reached a basic agreement to set up a optical disk drive joint venture.

Lite-On IT is currently the main ODM/OEM maker of ODDs for Sony. Today, industry sources indicate that they will continue to outsource its ODM/OEM orders and thus bring in additional orders from NEC, which currently mostly relies on self-production.

If true, Lite-On IT stands a good chance of replacing Hitachi-LG Data Storage (HLDS) to become the largest global maker of H/H DVD burners next year.

The sources pointed out that shipments for the OEM order are to begin in April 2006. Viewing that OEM prices for H/H 16x DVD burners have dropped to as low as US$35-40, NEC is under increasing pressure from competition and could turn to OEM production sooner or later, the sources indicated. Industry sources also indicate that Japanese Pioneer would also consider to outsource its DVD burner business to OEM, under its reconstruction plans to be announced soon.

Lite-On IT, has not commented on the report but it is expected to officially release an announcement soon.


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