In response to speculation that Lite-On IT may shift its optical drive chip orders from MediaTek to NEC upon the formation of their joint venture, MediaTek claimed that it has not received any news regarding an order shift.
Sources indicated that MediaTek was well prepared for a potential shift in orders and predicted that Lite-On would not massively shift its orders from MediaTek to NEC this year as chip validation usually takes nine months to one year.
Fubon Securities echoed the sentiment, but stated that MediaTek had lowered its risk by diversifying its customer base to include BenQ and other optical drive makers. The contribution from PC optical disc drive (ODD) sales at MediaTek is also expected to drop by eight percentage points to 36% in 2006, said Samson Yu, an analyst at Fubon.
While I'm happy that Lite-On may start using NEC chipsets, I'd hate to see BenQ switch to MediaTek. Actually, I wouldn't mind if they used them in their Super Multi drives as the Panasonic chipsets they're currently using are even worse.