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DVD drive component shortage is escalating
The source, referring to the manufacturers of optical drives, reports alarming news: the shortage of components necessary for the release of “writing” half-height DVD drives, outlined in the second quarter, has spread to the segments of DVD-ROM drives and compact DVD drives.
Hitachi-LG Data Storage (HLDS), the largest optical drive manufacturer in the OEM / ODM market, is only able to satisfy 85-90% of orders as it faces a shortage of key components, especially reading heads, according to knowledgeable market participants. Pioneer’s capacity is fully utilized, but only 80-90% of orders received under the terms of OEM / ODM can be provided.
Another large manufacturer, Lite-On IT, is also loaded with orders, and is forced to compete with HLDS for the supply of DVD reading heads manufactured by the Japanese companies Hitachi and Sanyo Electric.
According to industry sources, an additional factor complicating the situation was the increase in demand for drives from the manufacturers of game consoles – Xbox 360, Wii and others.