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Wednesday, December 01, 2004
Taiwan top-three optical-disc makers look to stop CD-R and DVD disc price war

CMC Magnetics, Ritek and Prodisc Technology, the three top producers of optical discs in Taiwan, will not participate in the ongoing cutting of OEM prices for CD-R and DVD+R/-R discs, according to the companies.

CMC chairman Robert Wong, Ritek CEO Gordon Yeh and Prodisc chairman Min-Fa Lin met in late November to discuss issues regarding global oversupply and competitive price-cutting.

The three companies agreed they would not participate in the optical-disc price wars brought on by price-cutting on the part of competitors in China and the expanding production capacity of some Taiwan makers, second-tier Taiwan makers of optical discs stated.

Since the top-three Taiwan companies in total supply 60% of the world?s production capacity for CD-R and DVD+R/-R discs, their ability to avoid cutting prices is expected to stop or at least slow any further fall in the OEM prices for optical discs, the second-tier makers indicated.


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