As we reported yesterday, CMC Magnetics reported a fire at one of their manufacturing facilities. While the fire damaged one of their smaller plants, it accounts for 10% of CMC's overall CD-R capacity which could worsen an already tight CD-R supply.
The optical disc maker said the plant, located at Yangmei, Taoyuan County, is a relatively smaller plant. Although CMC stressed that the plant's structure, equipment, and goods are fully insured, sources said CMC's monthly capacity will be reduced by about nine million units due to the fire.
The plant accounted for 10% of CMC's overall CD-R capacity and CMC's CD-R discs mainly support demand from major international brands, the sources stated. Since it takes at least three months to have CD-R discs validated, second-tier makers will not be able to absorb those orders and major competitors Ritek and Prodisc Technology will be the indirect beneficiaries of the fire, the sources indicated.
Needless to say, you can expect CD-R prices to rise next quarter. If you'd like to read more, head on over to DigiTimes.