The global supply of DVD+R/-R discs currently exceeds global demand, but the oversupply will begin to diminish next quarter and largely decrease or even disappear in the fourth quarter of this year, according to Ritek CEO Gordon Yeh.
Although global DVD+R/-R demand is estimated to grow from four billion discs in 2005 to six billion discs this year, fast expansion of production around the world has resulted in the current oversupply, Yeh pointed out.
But because leading makers of DVD+R/-R discs are shifting part of their production capacity for 4.7GB (single-sided single-layer) discs to making 8.5GB DL (single-sided double-layer) discs, the global oversupply is being reduced, Yeh indicated.
The shift of production capacity is because of fast growing global demand for DVD+R/-R DL discs, estimated to reach 100-150 million discs this year, Yeh noted.
Quite a considerable portion of this increasing demand is driven by 8cm DVD+R/-R DL discs used in DVs (digital video camcorders), Yeh added.
Story source:
digitimes.com.
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