Redon Hits Daily Limit, ZyXEL Surges Wildly! AI Drives Up Hard Drive Costs, Taiwan Optical Disc Makers Face Rare Price Increases in a Decade

The hardware squeeze caused by the AI craze unexpectedly brings a “late spring” to the traditional optical disc industry. As demand for high-end memory (HBM, DDR5) outstrips supply, driving up SSD and HDD prices, international companies are shifting their long-term stored “cold data” to cost-effective and hack-resistant optical discs for storage.

(Background: OpenAI’s first AI hardware product leak—smart speakers with face recognition, observation, and shopping assistance—expected to launch in early 2027)

(Additional context: OpenAI shock! Acquiring Apple legendary designer Jony Ive’s company io, Altman: “The most dreamy AI hardware” is on its way)

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• AI computing power tightens capacity, “cold data” returns to optical discs
• Oligopoly benefits explode: Ritek and CMC control global pricing
• Stock prices surge on news, structural transformation draws attention

Amid explosive growth in AI computing demands, market focus has mainly been on Nvidia chips or HBM high-bandwidth memory. However, this wave of technological upheaval is producing unexpected spillover effects, leading the long-dormant “optical disc” industry to stage a spectacular comeback.

AI computing power tightens capacity, “cold data” returns to optical discs

According to the Economic Daily, the demand for high-end memory in AI computing has caused a global storage supply chain crunch, directly pushing up prices for SSDs and traditional HDDs. Facing rising storage costs, companies and data centers are implementing strict “storage tiering” strategies:

• Hot Data: Needs frequent and fast access, mainly relying on high-end SSDs.
• Warm Data: Moderate access frequency, using HDDs or mid/low-tier SSDs.
• Cold Data: Infrequently accessed but legally or business-mandated to be archived long-term.

For massive amounts of “cold data,” enterprise-grade archive discs offer features such as low power consumption, decades-long lifespan, offline anti-hacking (air-gap), and write-once-read-many (WORM). Amid soaring SSD/HDD prices, discs have become a cost-effective B2B backup alternative, prompting some international clients to resume purchases to diversify risk.

Oligopoly benefits explode: Ritek and CMC control global pricing

The revival of optical discs has rapidly translated into corporate profits, thanks to “extreme supply consolidation.” Over the past decade, due to weak demand in the consumer market, companies like India’s MBI and several Chinese manufacturers have exited the market. Currently, about 80-90% of global capacity is concentrated in Taiwan’s Ritek and CMC Magnetics, forming a stable oligopoly.

When demand unexpectedly rebounds and supply tightens, pricing power shifts back to Taiwanese manufacturers:

• Ritek (2349): Officially announced price hikes since late last year, with over 10% increase in Q1 2026 and expected further 10-20% rise in Q2. As international clients expand procurement, their Taiwan and Vietnam production lines see significantly higher utilization, improving operations.
• CMC (2323): Confirmed that disc prices are trending upward, with rolling price adjustments based on customer purchase cycles (quarterly, monthly, or project-based), aligning with Ritek’s approach.

Stock prices surge on news, structural transformation draws attention

Market funds quickly seized this rare decade-long industry turnaround. According to CMoney’s intraday report, Ritek (2349) saw strong buying on March 19, hitting the daily limit at NT$14.4; CMC (2323) also surged about 8.64% late in the day, closing at NT$11.95. This indicates active capital rotation driven by the AI spillover effect.

Industry analysts point out that this disc price increase is not a short-term fluctuation but a structural demand driven by AI data explosion. While optical discs won’t fully replace SSDs/HDDs, their unique advantages in long-term B2B backup markets have been reestablished. This long-awaited “unexpected spring” could improve gross margins and stabilize cash flow for Taiwan’s two major optical disc players.