While Japan's optical disc manufacturers have been turning out recordable Blu-ray and HD DVD media for some time, those in Taiwan are still reluctant to invest in large-scale production of blue-laser discs. According to DigiTimes, the conservative attitude is primarily due to high royalty fees and the fear that the cost of production equipment may drop considerably in the future.
CMC Magnetics and Ritek, the top two Taiwan-based producers of optical discs, as well as Prodisc Technology, a second-tier maker, are unwilling to invest in large-scale production of either Blu-ray Disc (BD) or HD DVD discs, according to industry sources in Taiwan.

The disc manufacturers are reluctant to invest in blue-laser disc production because royalty fees are high and there is the possibility that the cost of production equipment may drastically drop in the future, noted the sources, adding that it is still uncertain which standard will become mainstream.
The article also points out that CMC and Ritek are producing HD DVD and Blu-ray media. However, in very limited amounts. If you'd like to read more, head on over to DigiTimes.