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Electronics Production | August 15, 2008

Pioneer to outsource ODD production again?

As the outsourcing contract (ODD) between Pioneer and Asustek has expired in July, the company may outsource some of the production to Taiwan based companies.
While Pioneer is expanding production capacity in its own Chinese factories, the company is said to consider outsourcing older and less profitable ODD types (DVD-ROM drives). Nethertheless, capacity is still needed for the production of Blu-ray Disc drives that are said to remain in-house, reports Digitimes.

Possible outsourcing partners are Hitachi-LG Data Storage (HLDS) and Toshiba-Samsung Storage Technology (TSST), Lite-On IT and Quanta Storage. While the first produce products for their own brands, the latter only sell a small percentage of the production under their own brand name. This may be an advantage as future brand competition in the global market is becoming more intense and Pioneer is expected to prefer the two Taiwan-based makers, the report goes on.

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