Daxon Technology, a second-tier producer of blank optical discs in Taiwan, will carry out its planned expansion of monthly production capacity to 90 million CD-Rs and 20 million DVD-R/+R discs despite continued drops in price, according to company chairman Eric Yu (DigiTimes.com).

The price of CD-R discs has fallen by 10%-20% this quarter, due to increased competition from China as well as increased output from some Taiwanese makers, which shifted portions of their DVD-R/+R disc capacity toward CD-Rs production, Yu pointed out.

Despite lower prices, China-made CD-Rs are inferior to Taiwan’s products in quality, Yu noted.

During the second half of this year, the global demand for DVD-R/+R discs will significantly grow due to increasing use of DVD recorders and burners, while additional demand will be generated by the 2004 Olympic Games in Athens, Yu said. Therefore, expansion capacity slated for this year remains unchanged for Daxon, Yu added.

Daxon also expects to begin production of polarizers next month. The new product is currently being certified by potential clients.