Lite-On take over BenQ’s production of optical units

Lite-On and BenQ are the two biggest ODD manufacturers (Optical Disc Drives) in Taiwain and since April 10 the production is performed by just one of the companies. BenQ has namely signed a deal saying that Lite-On will take over BenQ’s entire ODD department covering all assets, products and related technlology. For this BenQ will receive $37 million in cash and a 13% share of the joined venture, making BenQ the second largest shareholder of Lite-On IT. Through this deal Lite-On becomes the second largest ODD manufacturers in the world after Hitachi-LG Data Storage. What this will mean to us consumers is hard to say by now, but there are both risks and possibilities for the ODD manufacturers now that the two new storage formats Blu-ray and HD DVD are around the corner.

Source: DigiTimes