Taiwan is preparing an end to its ban on the manufacturing of adult DVDs.
Reports from the Asian Pacific media last week indicate that the government "is expected" to end the ban in the third quarter of 2005, possibly provoking a jump in OEM orders from overseas to major Taiwanese prerecorded porn DVD producers.
That could result in multiple billions of dollars of revenue annually if the end of the ban becomes reality, with Taiwanese product sometimes considered more quality-competitive than its counterparts in mainland China and Hong Kong.
The reports also indicated that Taiwanese makers of blank DVDs could shift production to prerecorded CD-ROM and DVD porn discs, which could add to an already aggravated shortage of blank recordable CD and DVD discs.
That, in turn, could produce a small tightening of the world supply of blank discs, but it could mean stronger benefit to such companies as CMC Magnetics and Ritek, which produce blank discs on subcontract.