Shortage of DVD pick-up heads to last until third quarter

March 21, 2002

DigiTimes.com has an article on the delay of DVD pick-up heads (PUHs) which is expected to last until the third quarter of this year:

Intense capacity expansion of DVD-ROM drives and DVD players has created a shortage of pick-up heads (PUHs) that is now expected to last until the third quarter. Industry insiders previously claimed sufficient supply would come again in the first quarter.

A major percentage of DVD PUH supply comes from Japanese companies such as Hitachi, Sanyo, Sony and Mitsumi. Acute Applied Technologies (Aatek) and Optrodyne are the only Taiwanese companies mass-producing such PUHs. Although major DVD suppliers have all begun to increase PUH capacity and output, demand is rising at a much faster rate.

According to sources, PUH supply is only enough for 70-80% of incoming orders in Taiwan's optical disc drive sector. Moreover, Taiwan can only secure 20-30% of PUH capacity in Japan, where companies are reserving more and more for new DVD drives and players.

Despite the shortage, prices have remained fairly steady. According to suppliers, in March the average quoted PUH price was US$9 for a DVD player PUH and US$8.50-9.00 for a DVD-ROM drive PUH.

Well as long as the prices remain the same...