A CMC executive points out that most of the company's NT$7 billion spending planned for this year is for procuring DVD equipment on the grounds that the market will take off soon. A part of the spending is for expanding CD-R production. The executive points out that behind the expansions is the burgeoning demand of the company's customers. CMC says it has landed orders for rewritable DVDs from big-name Japanese and American suppliers. The company estimates its DVD-R shipments will hit one million disks this year and triple next year. DVD-R has seven times the storage capacity of CD-R, and its average price of US$8 to US$10 is much higher than a CD-R's US$0.24.
Up to now, CMC has set up overseas CD-R facilities in the United States, Mexico, Britain and Hong Kong. It recently acquired a Mitsubishi Chemical facility in Ireland and two TDK factories, one each in the United States and Japan, boosting its CD-R output to 120 million to 130 million discs a month. The company has moved the production lines of the two TDK factories to a facility at Linkou, Taipei county. TDK was also a major customer to Ritek Corp. of Taiwan, CMC's arch rival. Local insiders of the line estimate the volume of the orders CMC has acquired is now larger than the volume of Ritek's..