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Monday, January 19, 2004
CD-RW drive output to grow strongly in 2004


Taiwan's output of CD-RW drives is expected to grow in 2004 as the markets for PCs and traditional CD-ROM and DVD-ROM drives are becoming saturated.

Quanta Storage and LITE-ON Technology, Taiwan's two leading CD-RW drive manufacturers, are both bullish about this year. The former predicts an annual production of 100 million units, or an annual growth of 60 percent, in its CD-RW drive production while the latter is looking for an annual output of 480 million units, a roughly 30 percent growth rate. Quanta Storage, which had an annual revenue of NT$13 billion, is seeking a record high annual revenue of NT$20 billion this year and is expanding its product lines to cover the new CD-RW model drives.

To support its growing production, the company is planning to raise NT$100 million through the issue of convertible bonds on the international markets by the end of February.

LITE-ON Technology is targeting an annual revenue of NT$50 billion this year, compared to NT$40.5 billion in 2003. It turned out 380 million CD-RW units last year, and is expecting an annual production of 480 million units this year. The company is in a cooperative project with Media Tek Inc., which claims to be the world's leader in the optical storage IC field, to launch a new dual-format, dual-layer CD-RW drive model in March.


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