Hard Disk Drives Will Have Long-term Shortage
Recently, flood has been raging Thailand and it makes the manufacturers in the IT industry complain incessantly. Because Thailand is the important production base of the hard disk drives and other industries, this flooding makes the manufacturers in the country have big loss. The manufacturers include Seagate, Western Digital, Hitachi and Toshiba. The more serious problem is the shortage because of the flooding. After the flooding attacked the country, many suppliers have been affected seriously in the industry.
The well-known manufacturers Seagate and Western Digital both have a warning. They said that the ongoing flooding in Thailand has led the supply of the hard disk drives to continue to deteriorate in the market. In this flooding, Western Digital had the most serious impact among all the companies. It is expected that it will have a huge impact because of locating in Thailand. According to the data, more than half of global capacity is supplied from Thailand. So far, the main production facility of Seagate Company has not been affected. But because the flooding has a large coverage, many small manufacturers also stopped their supply. In fact, according to the Seagate officials, it will be a huge impact and the impact will last several seasons in the market.
Thailand is one of the important production bases of the hard disk drives in the globe. Its production can account for 25% of the global capacity. Compared to the traditional PC products, the hard disk drives are the important computer products in the market. The shortage covering the world will affect the supply of the PC in the globe. There are some extreme cases. Because of the shortage, some manufacturers will stop their production. But for large manufacturers, they will have little impact because of long-term relationship. On the contrary, the small ones will have serious impact on business.
For the traditional PC products, the shortage of the hard disk drives will make them worse because of the price increase. The situation will cause the price increase of the PC terminal products. In fact, the tablet PC and other new product also have such kind of impact. But because the tablet PC and other new products use SSD storage, so the impact is not large. In short time, they will have the price advantage for buyers. But some manufacturers try to change their HDD need into SSD need. In the future, it will have the new effect. However, for the NAND flash memory, it has long term contracts. Therefore, in the future, even for a long time, the product cost will not rise significantly.
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