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.

Source: www.digitimes.com