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Lite-On IT and Sony form strategic alliance

Time: 13:14 EST/18:14 GMT | News Source: DigiTimes | Posted By: David Gasior

Sony recently signed a memorandum of understanding (MOU) with Taiwan-based optical drive manufacturer Lite-On IT, reported the Chinese-language Commercial Times. The news follows shortly after BenQ and Philips Electronics announced a new joint venture on February 12.

According to the report, Sony will increase its orders to Lite-On IT and lower its licensing fee. Shipments to Sony accounted for 5% of Lite-On IT�s shipments last year but have risen to 15% in the first quarter of this year.

Shipments of Sony�s slim-type DVD-ROM/CD-RW combo drives have decreased since the fourth quarter, and therefore both companies hope to expand their market share. Lite-On IT also will increase its key components purchasing from Sony.

The two companies were said to be cooperating on developing DVD-Dual chipsets, scheduled for launch in the second quarter. These highly integrated chipsets combine support for the DVD+RW and DVD-RW standards and could help DVD-Dual optical drives/players become mainstream products.

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