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(Japanese Site)

  • Taiwan CD-ROM Drive Makers Optimistic About Prospects
  • June 19, 1998 (TAIPEI) -- Major Taiwan-based producers of CD-ROM drives are optimistic about market prospects for the second half of 1998.
    Behavior Tech Computer Corp., Lite-On Technology Corp. and Pan International Industry Corp. are raising their production levels starting this quarter.

    Behavior Tech sold 770,000 CD-ROM drives in the first quarter, and it estimates output for this quarter at 800,000 to 1 million units.

    A company executive pointed out that since CD-ROM drives have become standard peripherals for personal computers, there is a direct link between CD-ROM demand and PC sales. Demand for personal computers is expected to rise in the second half of this year. For this reason, demand for CD-ROM drives will likely rise, too.

    Manufacturers expect to see reasonable prices and profit margins, after the recent fierce competition forced less competitive makers out of the market, according to the Behavior Tech executive.

    Lite-On Technology also projects rising demand in the second half, and it hopes to achieve an output of 7 million units this year. In a move to cut production costs, Lite-On plans to shift a portion of its CD-ROM drive production to China.

    Pan International made more than 1 million CD-ROM drives in the first quarter of this year, and it expects to increase output in the second quarter.

    The company said that market prospects appear promising in the second half of this year, as the third and the fourth quarters are peak seasons for the information industry.

    The Market Intelligence Center of the Institute for Information Industry (III) estimates that Taiwan's CD-ROM drive output will surpass 30 million units in 1998.

    Taiwan now holds 22.7 percent of the global CD-ROM drive market, and the percentage is expected to continue climbing, industry observers said.

    Related story: Scanners, CD-ROM Drives Are Q1 Winners in Taiwan

    (Commercial Times, Taiwan)

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    Updated: Thu Jun 18 14:50:05 1998