CMC Magnetics and Ritek will not be substantially hit by the reduced supply of DVD disc dye from Orgchem Technologies due to fire damage at Orgchem's factory on August 15, according to the two companies.
Orgchem is currently the largest producer of dye for making optical discs in Taiwan, but CMC and Ritek mainly rely on dye produced by Mitsubishi Chemical, TDK and Fuji Photo Film, the two companies pointed out.
However, the fire at Orgchem's factory may affect supply of dye for second-tier makers in Taiwan, sources indicated
Of the total material cost for DVD discs, dye accounts for about 10%, while optical-grade polycarbonate (PC) accounts for about 50-60%, the sources indicated.
Story source:
digitimes.com.
