D4rk0n3 used our news submit to tell us more news from DigiTimes this morning. This fire is
significant as there has been enough demand for CD recordable media, that prior
to this event at CMC, there had been some talk of price increases coming
soon. Considering that even though this was a smaller facility, the
tightening could be worse, especially since CMC accounts for about 20% of
supply of such medias. At least no one
was mentioned being hurt in the blaze.
 The
optical disc maker said the plant, located at Yangmei, Taoyuan County, is
a relatively smaller plant. Although CMC stressed that the plant's
structure, equipment, and goods are fully insured, sources said CMC's
monthly capacity will be reduced by about nine million units due to the
fire.
The plant accounted for 10% of CMC's overall CD-R capacity and
CMC's CD-R discs mainly support demand from major international brands,
the sources stated. Since it takes at least three months to have CD-R
discs validated, second-tier makers will not be able to absorb those
orders and major competitors Ritek and Prodisc Technology will be the
indirect beneficiaries of the fire, the sources indicated.
Global supply of CD-R discs has been tight due to transfer of
capacity from CD-R to DVD+R/-R.
With CD-R production running at full capacity now, second-tier
optical disc makers have planned to raise their quotes by 3% this month,
while CMC and Ritek had originally planned to keep their current price
levels. However, due to the fire, CD-R prices may increase next quarter,
the sources said. |
Source: DigiTimes
