Lite-On acquires BenQ optical drive unit

A surprising merger has been announced by BenQ, as Lite-On has acquired BenQ’s optical drive production unit for a strategic alliance. While the deal is extremely logical, due to the very competitive market and reduced margins, it still is somewhat surprising as BenQ has had a real impact on the industry with their extremely well performing drives. This move is good for Lite-On, as they have had problems delivering competitive products.

Lite-On IT and BenQ today announced that they have formed a strategic alliance that will bring together two of the industry’s leading players and enhance the overall competitiveness of Taiwan’s storage sector. The transaction is expected to increase Lite-On IT’s global market share to 27%, making it the world’s No. 2 optical disk drive (ODD) maker.

As part of the alliance, Lite-On IT will acquire BenQ’s storage-related assets, including BenQ’s ODM customer portfolio and the rights to use BenQ’s technology portfolio. Lite-On IT will also receive order commitments on BenQ-branded storage products.

“This strategic alliance combined with our manufacturing advantages, will allow Lite-On IT to further sharpen its competitiveness in the ODM market and become the No. 2 ODD manufacturer worldwide,” expressed Raymond Soong, Chairman of Lite-On IT. “In partnering with BenQ, Lite-On IT expects to benefit from increased manufacturing efficiency, greater economies of scale, and a larger market share.”

Source: BenQ