CMC Magnetics will increase its production capacity for blank DVD+R/-D discs by gradually transferring its existing CD-R capacity, and the company aims to have a monthly capacity of 80 million DVD+R/-R discs by the end of September and 90 million discs by the end of the year, according to company vice president Andria Wong.
The company’s current DVD+R/-R production capacity is about 72 million discs, Wong pointed out.
The average gross margin for DVD+R/-R discs is better than 20%, whereas the company is barely breaking even on production of CD-R discs, Wong indicated. However, CMC does not plan to cease production of CD-R discs, as demand still exists, Wong noted.
Due to increasing demand and persistent high procurement cost of polycarbonate (PC), CMC also plans to increase its prices for DVD+R/-R discs this quarter by an average of 10%, Wong indicated.
In related news, Taiwan second-tier optical disc makers are looking to purchase CD-R and DVD+R/-R disc manufacturing equipment that will be auctioned by Nan Ya Plastics, which was reported to be terminating its disc production.
Nan Ya has not formally confirmed that it has decided to stop optical disc production, and the company claims it is auctioning front-end manufacturing equipment that have yield efficiency issues.
Story source:
digitimes.com.
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