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Thursday, March 06, 2008
CMC Magnetics to Hold Back Blu-ray Disc Production

CMC Magnetics will not start commercial production of blank Blu-ray Disc (BD) discs until the global BD market emerges to some extent, according to company chairman, Robert Wong.

For now, the company will invest in BD R&D to cultivate its technological capabilities in the interim, reports.

CMC Magnetics is not the only Taiwan-based company that is conservative to invest in new product lines for Blu-ray discs. Ritek as well as Prodisc Technology, a second-tier maker, are also unwilling to initiate large-scale production of Blu-ray. The news are not surprising, since the Blu-ray disc production requires significant investments in BD equipment and companies have to pay royalty fees to the 21 owners of BD patents.

Taiwan holds the 72% of the world's optical disc production (CD/DVD). However, the hesitant moves of the Taiwanese makers means that prices of Blu-ray recordable media will not sink anytime soon.

"The global BD market will take two to three years more to take off, Wong predicted.

Japanese makers (Sony, Matsushita Electric Industrial, Mitsubishi Kagaku Media, TDK) are expected to continue to dominate the global production of Blu-Ray discs.

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