With the increasing availability of 16x DVD burners on the market, 16x DVD+R discs are expected to become the mainstream blank optical discs in the fourth quarter of this year, according to Robert Wong, chairman of CMC Magnetics, Taiwan?s largest producer of optical discs. Wong predicted that the OEM price level for 16x DVD+R will drop from the current US$0.80 per disc to US$0.60-0.70 next quarter. Global demand for 16x DVD+R discs is expected to rise from 1.6 billion discs in 2004 to 4.0 billion discs in 2005.

The advanced technology involved in making 16x DVD+R discs requires development costs of more than NT$1 billion, which provides a competitive advantage for the top makers, Wong indicated. Second-tier and small makers will be forced to merge with leading makers or withdraw from competition, Wong predicted.