Toshiba and Samsung in optical disk alliance
Toshiba and Samsung in optical disk alliance
Toshiba and Samsung have announced the signing of a memorandum of terms covering integration of their respective optical disk drive businesses in a joint venture. The two companies will now finalise details of the agreement in readiness for incorporation of the joint venture.
The new joint venture will bring together product and business planning, product development, procurement and sales for optical disk drives (ODD), including CD-ROM and DVD-ROM drives. The new company will be 51 percent owned by Toshiba and 49 percent owned by Samsung and consolidated by Toshiba.
The scale of the combined operation will position the joint venture among the world leaders in the ODD business. With 2002 annual sales exceeding AUD$2.6 billion, the collaboration is expected to further enhance its global position.
The optical disk drive business faces fast changing customer requirements for faster, slimmer drives, and a rapid transition in the main product to recordable DVD drives. Price erosion and alliances are also making themselves felt and further intensifying competition. In this environment, advantages in technology, product development and price competitiveness are all crucial for survival.
Both parties in the new joint venture hope the partnership will construct a competitive business structure that can promote optimised use of management resources.
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