GristyMcFisty used our news submit to tell us about this news he
spottted over at DigiTimes. DVD manufacturing is realy getting tough.
How much longer can this go on?
 Second-tier manufacturers of optical discs in Taiwan, faced with price cuts by competitors in China, have been forced to reduce their OEM quotations for 4x DVD+R/-R discs to US$0.15, a price that is lower than the industry's current average production costs of US$0.16-0.17, according to Taiwan makers of optical discs. The second-tier makers include GigaStorage, Lead Data and Optodisc Technology. The US$0.15 is a 50% decrease from the US$0.30 price recorded in the first half of this year, the makers indicated.
Although CMC Magnetics, Ritek and
Prodisc Technology, the top-three optical-disc makers in Taiwan, have
already shifted their production focus to 8x and 16x DVD+R/-R discs, they
are not faring much better. OEMs have put pressure on them to lower their
prices, and 16x DVD+R/-R disc prices have fallen to US$0.40-0.50, down
from US$0.80-1.00 quoted early last quarter, the makers pointed out.
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China is a force to be contended with in the industrial
world. Looks like these Taiwanese second tier manufacturers are in a heck of a
spot right now, even going so far as to suspend production in order to stop the
bleeding.
Source: DigiTimes
