CMC Magnetics to start volume production of dual layer DVD media in Q2

February 23, 2004

Digitimes reports that CMC Magnetics' pretax profits for January amount to NT$ 921 million (~US$ 27.7 million). To raise the profits CMC tries to be first to the market with faster media and new products according to the company's chairman Robert Wong:

Wong emphasized that CMC relies on quality and fast
time to market for its products and leverages its R&D strengths to
combat other local makers' price-cutting competition. To illustrate his
point, he used the company's moves to increase the proportion of 8x discs
to 80% of total blank DVD+R/-R shipments this month and further to 100%
next month and to begin volume production of single-sided double-layer 8x
DVD discs next quarter.

Although 8x DVD+R/-R OEM prices have slipped from US$ 1.2 to US$ 1.0 per disc, the dyestuff cost that contributes as much as 70%-80% of the total production cost has dropped a great deal in the same time, Wong noted. CMC's 8x DVD+R/-R clients generally demand the use of dyestuff produced by Mitsubishi Chemicals inJapan. The Japanese producer, due to strong competition from other Japanese makers such as Fuji, has reduced its dyestuff price from 20,000 yen per gram nearly two months ago to 5,000 yen currently, Wong pointed out.

8x speed of the double layer media must be a typo as the initial DVD+R dual layer speed will be 2.4x. Verbatim/Mitsubishi has also previously announced a spring release for its first dual layer DVD+R media.

Source: Digitimes