The Future of Taiwan CD-R, DVD+R and DVD-R Optical Disc Manufacturers
August 9, 2008 | Recordable CDs, Recordable DVDs
It is interesting to note that Digitimes had an article on Thursday, August 7, 2008 about the Optical Recordable Disc manufacturer, Prodisc, with CD-R, DVD-R, DVD+R and Dual Layer production lines in Taiwan and mainland China, clarifying it’s position about the “rumors” that they were discontinuing optical disc product.
company chairman Ming-fa Lin:
“”..Prodisc has invested more than NT$10 billion (about US$300 million) in production equipment of blank CD-R, DVD+/-R discs and has maintained a steady client base consisting of international vendors and overseas retail channels, the reason for not quitting production, Lin explained. Prodisc is negotiating with lending banks to seek their support for the company’s planned turnaround and continuing production of optical discs..”
As reported by Digitimes IT news
This is after a report a day before in cens.com that Prodisc would be exiting the Optical business.
Essentially Prodisc is without capital and has plenty of troubles with Philips. It certainly would not be in Philips interest for Prodisc to exit the business although the issue is really with recordable CD production which is not as large a market as DVD which is not under the Philips royalty. The real issue is with the razor thin gross profits that translate into a loss every year and yet CMC, Ritek and Prodisc keep slugging it out. It’s hard to imagine how Prodisc can continue but then it’s hard to see how any of the Taiwan Optical manufacturers can continue. They continue to drop the cost of blank discs even though the manufacturing costs keep going up leaving no profit at all. They all are scrambling to shift over to other storage products like USB flash and flash cards. Prodisc has been working on a film production project producing brightness enhancement film (BEF) as well as LED lamps and aspherical polycarbonate ophthalmic lenses with a Japanese company, Omron.
These are the major manufacturers of inexpensive recordable CD-R, recordable DVD, and at least for CMC and Ritek: Blu-ray recordable manufacturing. They have driven the market hard in OEM and branded media making it a very non-economical operation. I’m certainly amazed that Prodisc would invest 300 million dollars for production equipment expecting a return on the investment.
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