Blu-ray and HD-DVD to freeze competition until 2007 due to laser diode shortage

According to DigiTimes, Blu-ray and HD-DVD competition could freeze until 2007 due to laser diode shortage. Although several vendors, including Royal Philips Electronics, Hitachi-LG Data Storage (HLDS), Sony, Matsushita Electric, Lite-On IT and BenQ, already announced BD or HD-DVD drives, only Pioneer and Plextor are currently able to maintain actual shipments.

Utilizing BD drives in its own PS3 game consoles, Sony suspended shipments of blue laser diodes to other customers, the makers indicated, adding that only Nichia, Sharp and Sanyo continue shipping the diodes. Nichia, which currently holds 80% of the global blue laser diode supply, reported that its yield rate for blue laser diodes reached 30%, according to the makers. However, the actual output still falls behind the demand, the makers said.

According to Michael Gong, general manager of Lite-On IT’s optical disc drive business unit, demand visibility for BD and HD-DVD drives remains impressive, but availability of new models may be postponed due to the shortage of blue laser diodes. By the first quarter of next year, the tight supply is expected to ease, he added.

Source: DigiTimes