CMC, Ritek Tap Production of Single-sided Dual-layer Optical Disks

Taipei, Oct. 13, 2005 (CENS)--To increase their profits, leading Taiwan manufacturers of optical storage media, including CMC Magnetics Corp. and Ritek Corp., are actively getting involved in the manufacture of single-sided, dual-layer DVDs (digital versatile disks).

Ritek recently announced it has obtained product verification for 8x-speed single-sided dual-layer DVD+R-format disks from the Dutch electronics giant Philips Electronics N.V., the first local firm to gain such verification. The company said it would see monthly shipments reach five million disks by the end of this year. The company earlier won the same verification from Ricoh of Japan.

At present consumers the world over are reluctant to use the single-sided dual-layer DVDs because of high prices. With the volume production launched by CMC Magnetics and Ritek, the selling prices for single-sided dual-layer DVDs are expected to decrease, which will help boost sales of the products.

Ritek CEO Gordon Yeh noted retail prices for single-sided dual-layer DVDs have dropped to US$4 each from US$7 posted in the beginning of this year. He predicted world demand would reach 50 million single-sided dual-layer DVDs this year and 200 million next year. If the retail price for the products falls to US$2 each, the world demand will climb to 500 million units per year.

Yeh stated demand for single-sided dual-layer DVDs could increase rapidly because many consumers now have computers with drives that can record the products. He further noted that manufacturing profits for single-sided dual-layer DVDs are very promising, as the number of manufacturers in the line is limited because of the high technical threshold for them to enter production of the products.

CMC Magnetics, another leading manufacturer of DVDs, claimed it began shipping 8x-speed single-sided dual-layer DVD+R-format disks in September, and would increase shipment amounts each month.

At present only Ritek and CMC Magnetics are capable of rolling out single-sided dual-layer DVDs in Taiwan. CMC Magnetics boasted it would see monthly production capacity reach three million units of the products by the end of this year.