Taiwan's producers of blank DVD-R/+R discs are expected to face continued price drops this year due to the expansion of global production capacity. However, major manufacturers in Taiwan are striving to maintain their profitability by raising yield rates, upgrading products, and securing certification from OEM clients.

According to Taiwanese makers, their total production capacity will be expanded to at least 150 million DVD-R/+R discs a month by the end of this year. Producers in other countries, including Japanese Taiyo Yuden, Mitsubishi, TDK and Maxell as well as India-based Moser Baer (MBI), reportedly will also expand their production capacities this year.

Global DVD-R/+R demand this year is estimated at 1.5-2 billion discs, according to several market survey companies. To cope with threatening oversupply, Taiwan's top and second-tier makers of DVD-R/+R discs are trying to raise yields to 95% and 90%, respectively, from 70%-80% in 2003 and aiming to shift production from 4x to 8x discs. In addition, they are trying to boost orders and stabilize prices by gaining product certification from major players in the DVD burner market, including Sony, Pioneer, and Philips.