Taiwan makers: OEM prices for DVDR discs to bottom out in 3Q

May 7, 2004

GristyMcFisty reports us via
our news submit
that Taiwanese optical disc manufacturers expect that the market for blank
DVD+R/-R discs will bottom out in the next
quarter (3Q) of this year. The manufacturers predict that the market will
rebound though as global demand is growing faster than originally forecast:

In addition, with the continued drop in OEM prices, Taiwan
second-tier and smaller manufacturers of DVD+R/-R discs have suspended
planned capacity expansion, which will also ease the supply pressure, the
Taiwanese makers indicated.

Since lower prices have significantly pushed
up global demand for blank DVD+R/-R discs, and with the forthcoming
Olympic Games in Athens expected to stimulate additional demand,
Japan-based Fujiwara has upwardly adjusted its forecast of global DVD+R/-R
demand. In addition, the coming launch of 16x DVD+R/-R discs will absorb a
portion of the demand for discs of 8x or lower speeds, the Taiwanese
makers pointed out.

DigiTimes has also posted some figures on Fujiwara's global DVD disk demand projection. Between
the third quarter of this year and the first quarter of next year it
predicts an increase in DVD+R/-R discs of 53% while demand for DVD+RW/-RW
discs is expected to increase by almost 14%.

Source: DigiTimes