BenQ wins super-multi DVD burner order from TEAC

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Taipei, Aug. 1, 2005 (CENS)--BenQ Corp., a leading computer peripheral and consumer electronics brand in Taiwan, has reportedly won an order for optical-disc burner-drives from TEAC of Japan.

BenQ refused to confirm the reports due to confidentiality agreements signed with customers. Industry sources said that BenQ has the chance to challenge the position of Taiwan's No. 1 optical-disc drive maker this year with annual shipment of 15 million units seen following its strategic alliance with Royal Philips Electronics of the Netherlands.

Both two leading optical-disc drive makers BenQ and currently No. 1 Lite-On IT Corp. used to concentrate on production of digital versatile disc (DVD)-dual (DVD+R, DVD-R)-format burner models, but they have gradually stepped into production of super-multi (DVD+R, DVD-R, and DVD-RAM)-format products in a bid to expand market shares.

Industry sources said that TEAC, a second-class optical-disc drive brand in Japan, placed an order for super-multi drives with BenQ, although the size of the order is not so large.

The sources added that BenQ has started shipping super-multi drives to TEAC and the monthly volume is expected to rise significantly in the fourth quarter. Lite-On has been aggressively devoted to developing super-multi drives and is expected to start mass production in the second half, the sources added.

Following forming strategic alliance with Philips, BenQ's DVD-burner shipment has increased rapidly and the firm has run ahead of local counterparts in launching high-speed models, which helped it win many contract orders.

A senior official of BenQ's storage business division said his company shipped about six million DVD burners last year and the volume is expected to top 15 million units this year.

Lite-On, however, has projecte to ship around 16 million DVD burners this year. Lite-On delivered eight million DVD burners last year, making it the world's No. 3 such supplier. The firm said that it could easily ship over 10 million such drives this year with expanded capacity while challenging the goal of 16 million units.

Though BenQ is expected to challenge the position of Taiwan's No.1 supplier of DVD burners this year, the firm’s total optical-disc drive shipment is expected to reach only 30 million units, compared with Lite-On’s 50 million units.

Statistics showed that last year's world top-six DVD-burner makers were Hitachi-LG Data Storage (HLDS), NEC, Lite-On, Matsushita and BenQ-Philips. The global ranking is expected to change this year due to expanded production capacities of Lite-On, BenQ and Samsung.