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Friday, March 18, 2005
CMC, Ritek: DVD+R/-R to overtake CD-R discs in sales revenue

According to DigiTimes, CMC Magnetics and Ritek expect revenues from the sales of DVD+R/-R discs to exceed those of CD-R discs sometime this year because of growing global demand,

Leading Taiwanese makers of optical discs had largely expanded their production capacity for DVD+R/-R discs in 2003 and the first half of 2004 but stopped or slowed down the expansion in the second half of 2004 due to global oversupply, experts in the industry indicated.

As the global demand for DVD+R/-R discs appeared to rise rapidly, CMC and Ritek have expanded their respective production capacities through upgrading production lines of CD-R discs for making DVD+R/-R discs rather than procuring new manufacturing equipment with much more capital expenditure, the two companies noted.

CMC has increased its monthly capacity for DVD+R/-R discs from 50 million discs at the end of 2004 to 60-70 million at present and expects such discs to account for over 50% of its total revenues beginning next quarter, company spokesperson Andria Wong said.

Ritek indicated that its revenue ratio of DVD+R/-R to CD-R will rise from 4:6 in 2004 to 1:1 in the first half of 2005 and further to a level of over 50% for DVD+R/-R in the second half of this year.

The global demand for DVD+R/-R discs is estimated to be 4.0-4.5 billion discs in 2005, approximately double the figure recorded in 2004, according to these industry experts.

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