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Asustek Computer's contract for OEM production of optical disc drives (ODDs) for Pioneer will expire in July 2008, and the Taiwan-based vendor of motherboards and PCs may dispose of its ODD business by closing the business unit or selling it, according to industry sources in Taiwan.

While Pioneer has been Asustek's largest OEM client of ODDs, the Japan-based vendor has been expanding its ODD production capacity at its two factories in Dongguan, southern China, the sources pointed out. In addition to half-height and slim-type ODDs, the two factories began to produce Blu-ray Disc (BD) Combo drives earlier this year, the sources indicated.