The DVD recordable format war could go another way as Digitimes reports that currently there is a shortage on pickup heads for DVD+RW and DVD-RW drives. The only manufacturer of these parts that seems to be able to keep up with the demand is Philips.
As this company is one of the developers of the DVD+RW format it could eventually bring this format in advantage.
The supply crunch has been caused by a shortage laser diodes (LDs), a key component, as the dominant Japanese suppliers have not expanded output enough to keep up with increasing demand. Sharp Electronics is the main LD supplier to Hitachi, Sanyo Electric, Ricoh and Philips. |
Some Taiwan optical drive makers pointed out that it takes about four to six months to expand output. Therefore, the shortage may ease by the middle of the second quarter. Philips currently is the only PUH supplier with a relatively large capacity and high yield rate.
The market expects DVD+RW and DVD-RW drives/players to replace VHS video recorders in two to three years. Philips and other leading manufacturers have lowered DVD+RW player prices from an original NT$80,000-90,000 to NT$40,000 or less currently.
Besides Japanese vendors, Taiwanese companies are starting to enter the DVD+RW drive market, aiming not only at PC-use drives but also DVD+RW players, which may replace current DVD players.
A high demand and low production capabilities could also potentially increase the price of DVD recordable products. More information can be found here.
Source: Digitimes.com
