Several Taiwanese manufacturers, including Ritek, CMC Magnetics, and Gigastorage, are expected to benefit from TDK’s streamlining of Blu-ray disc employee number and capacity cut, as well as transferring of orders to partners.

Sony, TDK and Panasonic are the world’s three leading BD makers. Following in the footsteps of Taiyo Yuden, TDK pulled out of BD production, industry sources said. Japanese optical disc makers - now account for 70% to 80% of global BD production - will from now outsource CD, DVD, and BD production to Taiwanese partners.

Industry sources said that TDK is forced to cut some 11,000 employees in two years at different factories around the world, or close plants due to the sharp appreciation of the Japanese yen acombined with weak demand.

CMC began turning profitable in the third quarter of this year, while Ritek recorded profits from its core optical disc production in the same period. The two companies also pointed out improving operations due to rising prices and product-mix adjustments. Gigastorage reported continuing large orders filling production lines throughout November. The average selling prices of productshave been rising and will continue in December.

Taiwanese optical-disc makers are reportedly reviewing their strategies, now focused on cooperation rather than competition with Taiwanese partners to cut cost and emphasise branding and marketing. (Source: CENS)

Story filed 10.11.11