The European Union will possibly drop its anti-dumping investigation against optical discs coming from China and Taiwan, Taiwanese sources indicate.

A major percentage of the total output of the Asian-based CD, DVD manufacturing plants is sent to customers in Europe and the Americas. Last August, the European Union started inverstigations against optical discs coming from China and Taiwan.

However, with Italy-based Computer Support Italcard (CSI) quitting the business in the second half of 2005, France-based Manufacturing Advanced Media (Mam-E) and TDK halting production of DVDR/-R discs in Europe, the dumping charges may not be pursued, according to DigiTimes.com.

In the past, many Taiwanese companies had tried to sidestep the tariff by setting up new facilities in other countries: England, Mexico, Ireland and Australia, among others.

Currenltly, CMC Magnetics, Ritek and Prodisc Technology have adjusted their production locations to areas not under investigation, with CMC and Prodisc looking to Thailand as a new production center, while Ritek has chosen Vietnam.

Taiwan?s CD-R disc production volume makes up at least 80% of the world market.