The Japan Recording Media Industries Association predicts blank CD-R disc demand to grow to 5.6 billion units in 2003 and remain the most popular storage medium for several years.

Demand grew 84% to 3.27 billion units in 2000. The significant growth is attributed to a rise in CD-R applications, improved storage speeds and an increased number of PCs equipped with external CD-R/RW drives. Given an increase in PC shipments and the trend of CD-R/RW drives replacing floppy drives, global CD-R disc demand will amount to 4.5 billion units in 2001.

On the other hand, some market observers contend that the CD-R market is nearing maturity and new applications with large demand for CD-R discs have not emerged. The rising popularity of new storage systems like DVD-R/RW and DVD/RAM drives this year, moreover, will slow CD-R disc demand.

As for CD-R manufacturing, the supply surpluses last year were attributed to Taiwanese and Hong Kong manufacturers’ intensive equipment upgrading, and an inventory of more than one billion units prompted a substantial slump in prices. Taiwanese manufacturers produced 400 million CD-R discs per month last year, attaining a 70% capacity utilization rate. However, they will adjust their production this year to re-balance supply and demand.

The association predicts that Japan will account for 13% of global CD-R manufacturing in 2001, close to the proportion in 2000. If overseas Japanese ODMs (original design manufacturers) are taken into consideration, the proportion will reach 39%.

Source: Japan Recording Media Industries Association, compiled by DigiTimes, May 2001.