Taiwan-based Nan Ya Plastics to expand DVD-R disc production

Thanks to strong demand, major Taiwanese DVD-R disc makers have enjoyed full capacity utilization in recent months, as they seek to gradually increase output, the companies said. Local first-tier disc makers, including CMC Magnetics (CMC), Prodisc and Ritek, all said they have had their hands full in the past few months.

The surging demand was mainly caused by increased sales of DVD burners, as consumers now can purchase the burners at much lower prices, the disc makers said. The strong demand also emerged earlier than the companies had expected, and so far CD-R disc production is still the main driver of local disc makers, they said.

Nan Ya's expansion plan, if proved to be true, could be cited as another example of the industry's optimistic forecast for the DVD-R disc sector, according to sources. But with lessons learned from CD-R production, local disc makers in general are being more cautious with their current investment. Despite promising demand, prices for CD-R discs earlier dropped significantly because local makers skyrocketed their supply within a short period of time.