Taiwan-based BenQ, the largest computer equipment and mobile phone manufacturer in Taiwan, will sell its optical storage unit service for US$37 million to Jianxing Electronics Company, a wholly-owned part of Lite-On IT.

As part of their transaction, BenQ will also get a 13% of stake in Jianxing and two spots on its Board of Directors. The deal will close by June 1, 2006.

BenQ boasts famous computer makers Dell and HP as its major clients. At present, the company is selling laptop computer, LCD televisions and digital cameras.

Last year BenQ purchased Siemens' handset unit.