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First-tier optical disc manufacturers Ritek, CMC Magnetics and Prodisc Technology all plan to begin volume production of 40é— speed CD-R discs in March. In contrast, second-tier competitors have stalled at 24é— speed as production yield for 32é— speed CD-R discs is still relatively low.

Taiwan's biggest optical disc companies are trying to increase their lead and are now able to maintain at least a 90% production yield for 32é— and 40é— speed CD-R discs. Small to mid-scale first-tier companies are averaging a more than 90% yield for 24é— CD-R discs, about 60% for 32é— and less than 50% for 40é—.

Market insiders said the jump from 16é— speed to 24é— speed was already hard enough for second and third-tier manufacturers, which spent a lot of time adjusting parameters before they were able to attain 90%+ yield. When advancing to 32é— speed, these companies must change their dye process from silver to blue: an adjustment which takes a considerable amount of time. Fortunately, the dye for 32é— and 40é— CD-R discs is quite similar, so volume production of 40é— CD-R discs should not be a problem. However, production yield will still be a setback for smaller companies.

Unlike first-tier companies, which spend large amounts on R&D, second-tier manufacturers often purchase CD-R discs made by the first-tier companies and then run tests on these discs to learn how to produce them. For this reason they usually reach volume production one to three months after the heavyweights.

The quoted price for a blank 40é— speed CD-R disc is around US$0.25 '“ much higher than that of other speeds. However, once all companies initiate volume production and successfully generate market supply, the average quoted price will naturally slip down.