DigiTimes is reporting that Asustek's OEM contract with Pioneer will expire in July. Instead of renewing, Pioneer has been expanding the production capacity of two of its own factories in southern China. As a result, Asustek may close or sell off its optical disc drive business.
Asustek Computer's contract for OEM production of optical disc drives (ODDs) for Pioneer will expire in July 2008, and the Taiwan-based vendor of motherboards and PCs may dispose of its ODD business by closing the business unit or selling it, according to industry sources in Taiwan.
While Pioneer has been Asustek's largest OEM client of ODDs, the Japan-based vendor has been expanding its ODD production capacity at its two factories in Dongguan, southern China, the sources pointed out. In addition to half-height and slim-type ODDs, the two factories began to produce Blu-ray Disc (BD) Combo drives earlier this year, the sources indicated.
Lets hope that Asustek doesn't pull out of the optical disc drive business altogether. While some of their more recent drives have had their share of issues, they've come up with some pretty unique designs over the years. Anyway, if you'd like to read more, head on over to DigiTimes.
