Thailand has had a major adverse effect on the supply of hard drives in the last two weeks. Approximately half of the world’s hard disk drives are produced in Thailand. In the last two weeks, we’ve seen both Western Digital and Toshiba suspend production, due to flooding in factories. Western digital issued a press statement early last week (17 October 2011) assuring that their employees remain safe, but warning that the floods would affect its ability to meet customer demand for its products in the December quarter. This is despite the company’s other facilities in Malaysia, Singapore and the U.S. being fully operational.
While Seagate’s factories have not been flooded, there have been issues in the supply of components that are sourced through the local Thai market.