Vanguard Disc, a second-tier maker of optical discs in Taiwan, is set to close due to competitive pressure in the CD-R disc industry and the failure of its shift to DVD-R production.
Vanguard originally produced CD-R discs, with a monthly capacity of 8-10 million discs. About two years ago, the company began to switch to DVD-R production. However, the company said that it terminated all production about a month ago because it can't compete profitably against the low prices offered by CD-R makers in China and India amid rising material costs, and its shift to the production of DVD discs has not been smooth. Vanguard is now seeking buyers for its manufacturing equipment and is set to terminate operations.
The case of Vanguard demonstrates that it is becoming increasingly difficult for Taiwanese makers of optical discs, with a monthly production capacity below 20 million discs, to survive, the sources indicated.
Story source:
digitimes.com.
