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Thailand floods cause HDD shortage

Channel prepares for HDD shortage due to flooding in Thailand!

Distributor VIP Computers has warned that the recent severe flooding in Thailand will affect the import of of hard disk drives (HDD) Yesterday we were informed by our HDD suppliers that severe flooding in Thailand has impacted HDD factories as well as many sub-assembly factories in Thailand – the impact of the flood will have a severe impact on supply as factories are damaged or workers cannot reach factories.

Vendors hit include Western Digital, Hitachi and Seagate. Western Digital, which produces 60 percent of its HDDs in Thailand, has been forced to shut down its plant. Hitachi also manufactures a large percentage of its mobile (2.5”) HDDs at a plant in Thailand, and its plant too has been severely impacted.  Seagate relies on several sub assembly suppliers in Thailand some of which had factories that were flooded or are shut down due to lack of worker access. We do not believe the enterprise class products will be as severely affected as desktop and mobile.

Bottom line, The WW HDD supply this quarter could be affected by as much as 20 percent or close to 30m units (out of a TAM of 170M units). This is potentially worse than the Japan disaster in March.

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