Along with the increase in demand of compact discs, and the improvement of industry production lines, price competition has increased significantly in the past few years. As a result, it becomes more important for companies to have effective self-evaluating systems to utilize resource optimally, to control production costs more effectively, and to create competitive advantages. There problems are all crucial to the survival of compact discs industry. This research uses Data Envelopment Analysis (DEA) and Malmquist to evaluate the efficiency of 13 compact disc firms from 1999 to 2002. The results found that: 1. E firm in overall technical efficiency 、pure technical efficiency and scale efficiency aspects are all relatively more effective. 2. The Malmquist index demonstrates that A, B, D, E, F, G, H, I, K, L and M perform better.