Things aren't looking good for Prodisc. Earlier this week, the company asked a local court in Taiwan for protection against its creditors to prevent them from seizing its assets. According to the China Economic News, Prodisc has also filed for corporate restructuring and will be shutting down its optical disc business.
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.If you'd like to read more, the entire article can be found here.
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.