Taiwan based makers of optical discs are likely to obtain OEM orders from Hitachi-Maxell, following the company's recent decision to stop producing blank CD-R, DVD and Blu-ray optical discs.
Hitachi-Maxell announced last week that it would stop the in-house production of blank optical media under its new business reconstruction plan. The company plans to outsource production while maintain quality control and own-brand marketing. According to inductry resources in Taiwan, leading Taiwan-based makers are likely to obtain OEM orders from the Japan-based client, Digitimes.com reports.
Taiwanese makers are also expected to receive orders for production of CD and DVD media from other Japanese makers including TDK, Taiyo Yuden and MKM, as they all shift their production focus on Blu-ray discs.
However, Taiwanese makers are threatened by China-based optical disc makers, which could attract Japanese makers with better prices. Companies such as CMC Magnetics, Ritek and Daxon Technology believe that they stand a better chance than others of obtaining orders, posing higher quality standards.