Ouch: cdrlabs reports NEC Evaluates DVD Burner Outsourcing To Taiwan

not their best move in my opinion

aren’t they currently made in malaysia? i guess i fail to see what the difference would be?

NEC has developed ND-1000A to ND-3540A in Japan. Their Malaysian factory is probably part-owned by NEC but mostly owned by local interests. Outsourcing drives according to the Greater China news excerpts as reported by DigiTimes.com probably means outsourcing entire processes from developing and assemblies to Taiwan (most likely one of those like BenQ, Lite-On, Quanta, BTC, etc.) and China. If moving factories from Malaysia to another place was at issue, NEC would have chosen Guang-Dong or Dong-Guan, not Taiwan where both real estate and labor cost a lot more. Shipping is also cheaper in southern China from Guangdong to Shanghai area. Out of about 15-20 million DVD drives NEC sells in a year, how much profits can they make?

Outsourcing to me is like Sony did with their burners …their all Rebadged Lite-on’s now

HP did the same thing… pretty soon all drives will be rebadged if they can’t hold their value…

well my last dvd burner purchase is looking like 2 3540’s so i guess that will be it for nec at that point :slight_smile:

Two things.

HP makes printers, but not digital camera and optical drives. They have always rebadged OEM units made by Ricoh, LG, Lite-On, BenQ, NEC, Samsung, and so on, mostly Taiwanese, and some Japanese and South Korean. Even after outsourcing to Taiwan, Sony and Philips play some important roles in designing and making DVD writers. I doubt there’s a single component or firmware designed by HP in DVD writers.

Since DVD writers are getting less and less profitable and HD-DVD is getting closer to retail, it’s only logical to expect NEC to give up DVD sooner or later
and concentrate on HD-DVD.