In order to maintain their leverage in negotiating royalty charges, leading Taiwan manufacturers of optical discs and optical disc drives (ODDs) are remaining neutral in the battle for next-generation blue-laser DVD standards, and specifically the battle between Blu-ray Disc and HD-DVD, according to Taiwan industry makers.

Both the Blu-ray and HD-DVD camps are marketing their formats to the Taiwan vendors and suggesting possible partnerships, the Taiwan makers indicated.

President Steven Chang of U-Tech Media, the largest producer of pre-recorded optical discs in Taiwan, said that Taiwan accounts for more than 30% of the global production capacity for ODDs and over 60% of global capacity for optical discs. Taiwan makers should take advantage of the competition between the two groups to secure the best royalty rates, Chang pointed out.

In addition, Chang argued that it is important for Taiwan makers to ally themselves with the winning platform. As the battle is still being fought, the best current policy is to wait, Chang added.