CMC Magnetics, Ritek and Prodisc Technology, the three largest producers of optical discs in Taiwan, are expanding their production capacities of blank DVD-R discs to 20 million to 60 million discs a month each in 2004, according to Digitimes. Increasing global demand and more attractive gross margins are prompting the capacity expansion, according to the companies. In 2004, demand is projected to be five times that of this year.

CMC Magnetics will raise its monthly production capacity of DVD-R discs from 24 million units last month to 30 million by year-end and 60 million next year.

Over the same period, Ritek’s monthly capacity is set to increase from 15 million discs to 20 million discs and then to 30-35 million discs.

Prodisc’s will expand monthly capacity from four million discs in October to nearly 10 million in November, 15 million by year-end and 20-30 million in 2004.

Apart from DVD-R discs, Prodisc is expanding its production capacity of CD-R discs. The company will begin operations at a factory in Ningbo, Zhejiang Province (China) on December 12. The factory will initially have 30 production lines for a monthly capacity of 30 million CD-R discs, with all output for sale in the China market. The company will be the largest Taiwanese supplier of CD-R discs in China.