Taiwan recordable disc production maxed

Many recordable media manufacturers in Taiwan are operating at over 90% production capacities this quarter, up from 70-80% as seen last quarter. Orders have increased without regard to price increases of approximately 10%, which were recently instituted by CMC Magnetics and other Taiwan suppliers.

This level of manufacturing has seldom occurred at the major suppliers in the past 3 years, according to Digitimes sources. The jump in numbers is attributed to less competition in the recordable media manufacturing market after numerous plants in China and Taiwan have shut down, most likely due to shrinking profit margins.

With production maxing out and additional supplier price hikes being considered, consumers might see CDR and DVDR prices rising in the near future. Let’s hope that these retail price increases will not be significant.