Taipei, March 22, 2011 (CENS)--Taiwanese optical disc manufacturers with volume production lines for blu-ray DVD disc are expected to snap up more contract orders originally going to Japanese firms as the 9.0-magnitude earthquake ravaging northeastern Japan caused local factories to shut down temporarily, according to market observers.
Japan supplies 70-80% of blu-ray DVD discs used worldwide, with Sony the largest supplier of this kind. Other Japanese makers, including Panasonic, Matsushita, TDK and Taiyo Yuden, are also atop the global industry.
However, the powerful earthquake may have shaken up Japanese makers' foremost positions in the global supply chain, as Sony and TDK have suspended production at their factories located in quake-hit areas. This may force global buyers to switch their orders to Taiwan's CMC Magnetics Corp. and Ritek Corp. in the near future.
Besides, industry insiders indicated that a global supply squeeze caused by Japanese firms' factory shutdowns is also likely to push up prices of blu-ray DVD discs, which will help to improve the industry's profitability.
In fact, CMC and Ritek have respectively become part of Japanese firms' OEM (original equipment manufacturing) supply chains in recent years after surviving fierce competition against their Taiwanese counterparts, as they are steadfastly dedicated to blu-ray DVD discs and ultimately become capable of volume production.
Market observers concluded that the earthquake will surely accelerate flow of global contract orders for the products into Taiwan, with CMC and Ritek to share the huge business pie. According to Japan Recording Media Industries Association, around 300 million blu-ray DVD discs will be needed in 2012.
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