With its OEM contract with Asustek ending in July, Pioneer has expanded the production capacity of its two ODD factories in southern China. While Pioneer will produce its Blu-ray Disc drives in-house, DigiTimes is reporting that the company may outsource the production of older and less profitable models to manufacturers based in Taiwan.
I think that a lot of this is based on pure speculation. However, with the ODD industry's ever-shrinking profit margins, it would not surprise me if Pioneer did partner with a Taiwanese manufacturer like Lite-On. If you'd like to read more, head on over to DigiTimes.Since the contract between Pioneer and Asustek Computer for ODM/OEM optical disc drive (ODD) production expired in July 2008, Pioneer is very likely to select one or more new ODM/OEM partners to make less profitable models, and the priority may be given to Taiwan-based makers, especially Lite-On IT and Quanta Storage, according to industry sources in Taiwan.
While Pioneer is expanding the production capacity of its two ODD factories in southern China, the company is considering gradually outsourcing production of mature and low-profit ODD types, such as DVD-ROM drives and half-height DVD burners, while shifting in-house production to Blu-ray Disc drives, the sources indicated. Thus, Pioneer may seek new ODM/OEM makers, the sources added.