According to DigiTimes, Taiwan's second-tier disc makers are facing a
shortage of TFP (tetrafluoro-propanol). In preparation for the 2008 Beijing Olympic Games, the Chinese government is attempting to reduce
air polution by asking the country's three TFP makers to cut or stop production for 100 days. As a result, second-tier disc makers have
been forced to reduce or temporarily halt production.
In preparation for the 2008 Beijing Olympic Games, the China
government in April 2008 asked the three TFP makers and other chemical producers to cut or stop production for 100 days in an attempt to
reduce air pollution, the sources pointed out. In addition, the China government placed a temporary ban on the transportation of
dangerous goods, including TFP for export, beginning June 2008, the sources indicated.
The situation has resulted in a short
supply of TFP for second-tier disc makers, the sources pointed out. CMC Magnetics and Ritek, the top-two Taiwan-based makers of blank
optical discs, have not been substantially affected by the shortages because they have supplies guaranteed by long-term contracts, the
sources indicated.
This comes at a bad time as the third quarter is traditionally the peak period for blank optical
discs. The decreased production could push up OEM quotes for the quarter. If you'd like to read more, head on over to DigiTimes.