Taiwan DVD disc makers enjoy booming business

Tuesday, May 17, 2005

Taiwan DVD disc makers enjoy booming business

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Manufacturers of DVD+R/-R discs in Taiwan, in light of growing orders and fully occupied production capacity, have increasingly been choosing the orders for more profitable 16x discs and contracting out the production of 8x discs or for relatively small volumes to second-tier or smaller makers.

Currently the OEM prices stand at US$0.35-0.40 for 16x DVD+R/-R discs and US$0.25-0.30 for 8x discs, the makers indicated. Because the production capacity of the leading and second-tier makers is currently fully utilized, overseas retail channels needing smaller orders of around 2-3 million DVD+R/-R discs will have to seek out the smaller makers in Taiwan.

As the next quarter is the traditional peak sales period and Taiwanese makers have not said if they would expand production capacity, the global supply of DVD+R/-R discs is likely to fall short of demand in the third quarter of this year, the makers predicted.