Production oversupply has pushed down OEM prices for DVD+R/-R discs since the beginning of the year and prices are not expected to stabilize until the fourth quarter, according to major optical disc manufacturers in Taiwan.

Expansion of production capacity by Taiwanese and Chinese makers in the second half of 2003 has caused the oversupply of DVD+R/-R discs, pushing OEM quotations from US$1-1.20 per disc in the fourth quarter of last year to US$0.50 for leading makers and US$0.30 for second-tier and smaller makers currently.

The large drop in prices has forced Taiwanese and Chinese makers to suspend their originally scheduled capacity expansions, the Taiwanese makers indicated. China macroeconomic policy is expected to further limit capacity expansion plans of local Chinese makers, the Taiwanese makers noted. The makers believe DVD+R/-R OEM price drops should slow down or rebound by the end of the next quarter.

From DigiTimes