An increasing number of China-based optical disc drive and electriccal home appliance makers, such as Shinco Electronic and TCL, have stepped into assembling entry-level DVD recorders that have mechanical loaders, a key part of the drives, supplied by Taiwan-based makers, according to industry sources in Taiwan.

The global production of DVD recorders was originally dominated by Japan-based brands including Pioneer, Sony and Panasonic, with the remaining shared by Samsung, LG and Taiwan-based ODD makers.

However, as global demand for DVD recorders has begun to decline, Taiwan-based makers, such as BenQ, Actima Technology and CyberHome Entertainment (originally named Protop Innotech), have been withdrawing from production of entry-level DVD recorders since 2006, the sources noted.

The situation has allowed China-based makers to fill the gap. However, the China-based assemblers almost all have to rely on mechanical loaders produced by Taiwan-based makers because of the relatively high technological barrier in producing these parts.

Philips and other US and European brands as well as retail channels in the US and Europe are continuing to place OEM orders for medium- to high-end HDD-equipped DVD recorders with Taiwan-based makers, but have shifted OEM orders for entry-level models to China-based makers, the sources pointed out.

Shinco recently debuted 160GB HDD DVD recorders, signaling the capability of China-based makers to upgrade from entry-level to HDD-equipped higher-end models, the sources indicated. The trend is expected to bring competitive pressure on Taiwan-based makers, including Lite-On IT and Mustek Systems, the sources analyzed. (Source: DigiTimes)

Story filed 22.07.07