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CD-R and DVD-R, production capacity to the limit

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The costs of the burners are lowered: the speed to "toast" them is always higher and the software is more flexible than ever.

Three factors that have recently massively increased the consumption of CD and DVD standard recording media, these come largely from eastern countries, Taiwan in the lead.

Just from nationalist China comes the news that the four most important companies in the sector have announced that they have reached the maximum production capacity for this type of media. The lines work at full capacity and sometimes some CD productions had to be suppressed (the demand slowed slightly during the last month) in favor of the more expensive DVDs.

Ritek, one of the big names in the sector, produces 10 million DVD-Rs every month in the first quarter (normally a moderate demand period), in the last months of 2002 it had reached 8 without responding to the global demand. Ritek alone will produce this year half of all recordable DVDs with a volume of 200 million pieces.

GigaStorage will increase the production of recordable DVDs from the current 500 / 600,000 pieces to 3 million by the end of the year.

Precisely because of these difficulties and the saturation of production capacities, a small increase in the price of CD-Rs is likely from April: these have a variable cost at the origin between 18 and 20 cents a dollar each.