With the OEM price of 4x and 8x DVD+R/-R media at an all time low, many
companies are switching their orders from CD-R to DVD+R/-R discs. As a result, the CD-R production capacity among Taiwan-based
manufacturers has fallen from 70-80% in the third quarter of this year to 60-70%.
As second-tier Taiwan-based makers of
blank optical discs have lowered OEM quotes to compete for orders for 4x and 8x DVD+R/-R discs, OEM orders originally for CD-R discs have
been switched to DVD+R/-R discs and this has caused decreases in CD-R production utilization rates for many makers in Taiwan, according
to industry sources.
While OEM prices for CD-R discs have stayed at US$0.09-0.10 currently, those for 4x or 8x DVD+R/-R discs have
dropped to US$0.11-0.12 and some makers have even quoted US$0.10, the sources indicated. The reduction in price gap has pushed OEM orders
from CD-R to DVD+R/-R discs, and consequently, the utilization of CD-R production capacity among Taiwan-based makers has fallen from
70-80% in the third quarter of this year to 60-70% at present, the sources pointed out.
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