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Prodisc Technology Inc., the world`s fourth largest and Taiwan`s third-largest optical-disk maker, filed for corporate restructuring yesterday (Aug. 4) and will exit the market, a move expected to give a relief to other makers in the line from the throat-cutting competition which has plagued the optical-disk market for five years.
Two major beneficiaries of the development will be CMC Magnetics and Ritek Corp., the two leading Taiwanese optical-disk makers, which may be able to hike their prices for the second time this year in the fourth quarter and turn their operations into black in the quarter.
Prodisc boasts a global market share of 11%, trailing CMC Magnetics, Ritek, and India`s MBI. Its exit, therefore, may reverse the glut in the market, which is suffering from 10% excess supply, thereby ending the bearish market which has lasted five years.
Therefore, CMC Magnetics and Ritek may be able to raise their prices again in the fourth quarter, following the 10% hike in response to the increase in materials prices this month.