PLDS Aims to be Among Top Two Global ODD Suppliers

Philips Lite-On Digital Solutions (PLDS), a joint venture between Royal Philips Electronics and Lite-On IT for the production and marketing of optical disc drives (ODDs), aims to be among the top two ODD suppliers in the world in terms of shipment volume, according to general manager Charlie Tseng for the Optical Disc Drive Business Unit of PLDS.

Lite-On IT took over BenQ's 49% stake in Philips BenQ Digital Storage, the predecessor of PLDS, for NT$260 million (US$7.8 million) at the end of 2006 to complement its own resources, according to industry sources in Taiwan. Hitachi-LG Data Storage (HLDS) is currently the world's largest supplier and OEM/ODM maker of ODDs, with its 2007 shipment volume estimated to be 80 million units, the sources said.

Since the engineering staff of PLDS came from Philips, BenQ and Lite-On IT, there were difficulties in integrating the employees due to differences in corporate cultures, Tseng indicated. PLDS has spent almost half a year in creating a cohesive team, Tseng pointed out, adding that PLDS' business now is at the point of taking off.

While aiming for large shipment volumes, PLDS will maintain steady profits and therefore will maintain a minimum gross margin by refusing low-priced orders as well as not participating in price-cutting competition , Tseng pointed out.

PLDS has two business units, one for PC-use and consumer ODDs, including use in game consoles, and the other is for car-use ODDs, Tseng noted. PLDS has received orders for ODDs used in game consoles from clients in the US and just began shipments in June, Tseng indicated. Based on orders received, PLDS's shipment volume of PC-use ODDs in the third quarter of this year is expected to increase by about 20% on quarter, Tseng said.

Source: DIGITIMES