Although Taiwan currently only has two makers, Ritek and CMC Magnetics, manufacturing Blu-ray discs, as the Japanese Yen exchange rate appreciates, Japan-based makers are starting to outsource their production to the above makers which is expected to help Taiwan become the largest producer of Blu-ray discs by the end of 2010. Taiwan's 25GB single-layer Blu-ray disc capacity is expected to surpass the combined capacity of Japan-based Sony, Panasonic and TDK, and Taiwan is also expected to contribute 15-20% of the global 50GB dual-layer disc capacity.

According to Japan-based research firm Techno Systems Research, global Blu-ray disc shipments in 2010 are expected to reach 113 million units, up significantly from those in 2009. Since 25GB single-layer Blu-ray discs have a lower price, they currently account for about 80% of the global Blu-ray disc market, while 50GB dual-layer discs have about 18-20%, equivalent to shipments of 2-2.2 million units

In 2009, Sony, Panasonic and TDK had shares of 23.7%, 21.8% and 19.9% in the global single-layer Blu-ray disc market and with the addition of other smaller Japan-based makers such as Mitsubishi, Japan makers have over 70% of the global single-layer Blu-ray disc market and 100% for the dual-layer disc market.

However, in 2010, facing rising exchange rates, Japan-based makers are gradually outsourcing mature products to Taiwan makers and are turning their focus back to developing triple- and quad-layer BDXL discs, while Taiwan makers are aggressively expanding 25GB Blu-ray capacity to increase their production share.

The two Taiwan makers are also working aggressively over dual-layer discs and have both received certification from the Blu-ray Disc Association. The two are expected to ship their dual-layer discs in the fourth quarter of 2010 with initial monthly shipments of about 150,000-200,000 units each. As their combined shipments will be able to reach as high as 400,000 units, they will account for a 15-20% share of the global dual-layer disc market.

Although Blu-ray disc patents are mostly held by Japan-based makers, since Taiwan makers have advantages over material cost and manufacturing process, while Japan makers are facing pressure over dropping profits because of the exchange rate, Taiwan and Japan are expected to have relationships as both competitors and partners in the future.