Philips moves optical storage units from Europe to Taiwan



It's no secret that Taiwanese companies are currently ahead of developments in the optical storage industry and that currently a lot of their products bring you good quality for low prices. It seems that also Philips has noticed this and the company has now announced that it will move their optical storage business from Europe to Taiwan.



The major part of the restructuring will see the PC related (Data) business line concentrated in Taiwan. Approximately 390 employees in Hasselt, Belgium, will be affected by the move, approximately 45 of who will be offered positions at other sites within POS. The present POS group in Eindhoven will be strengthened to concentrate on the pre-development activities of the POS business. Workers councils and union representatives have been informed and Philips will provide all possible support in assisting affected employees to find other employment within or outside the company.

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The Taiwanese relocation will allow Philips to focus on its DVD+RW development activities and further cooperation with local and regional partners. Philips will use its strengths in research and development to continue its leadership in new product innovation and establishing standards. Manufacturing will increasingly be done through partnerships. The turnaround of POS Data will be achieved by eliminating unprofitable product lines based on more mature technologies, focusing on DVD+RW where margins are profitable and improving as the standard becomes established, and at the same time significantly reducing fixed costs.

Apparently the Philips Optical Storage (POS) unit doesn't make any profits at the moment, something you should not expect from one of the inventors of the Compact Disc, and the move should bring the unit back to profitability.

Source: Philips.com

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