The annihilating floods in Thailand will cause a 28 per centum quarter - on - one-quarter drop in hard phonograph recording driving force ( HDD ) production in the 4th stern , potentially affecting notebook product in early 2012 , research firm IHS iSuppli say on Monday .
Western Digital could also lose its locating as the big shipper of the drives , the research firm said .
Toshiba and Western Digitalhave announced so farthe impermanent shut down of their factories in the country , while Seagate Technology said the supplying of components to its factory in Thailand was cut off .
In an update last week , Toshiba said that water is two meters high-pitched on the site and the surrounding country , and more than one m deep in the buildings at its hard disk deftness at Navanakorn Industrial Estate Zone , Pathumtani , which was damaged . The company started alternative production at other factories , but say “ the yield volume will be limit by available capacity ” .
HDD freight in the fourth fourth part will decline to 125 million unit of measurement , down 27.7 percent from 173 million in the third quarter , resulting in a significant famine of HDDs , and an increase in toll of about 10 percent equate to third quarter prices , iSuppli aver .
Thailand is the world ’s secondly - turgid manufacturer of HDDs after China and is a major provider of heavy drive parts . Located in the country are key constituent makers like Nidec which according to iSuppli supplies more than 70 per centum of all global HDD motor , and is a supplier to major HDD producer like Western Digital , Seagate , Hitachi Global Storage Technologies , Toshiba and Samsung .
Nidec enjoin in a regulatory filing last week that operations at most of its factories in Thailand make HDD motors and motor components remain temporarily suspended .
The flowage in Thailand since July have so far take more than 380 lives , and have progress to the capital letter city Bangkok , according to report .
The HDD industrial plant affect by the implosion therapy make devices design for mobile computers , but disruption to notebook shipments in 2011 is not expected , as the PC industry appears to have sufficient backlog to last through the quaternary quarter , iSuppli said . With HDD product commotion look to last at least six months , the dearth could affect notebook microcomputer production in the first fourth part of 2012 .
From the 2d quarter of 2012 , notebook computer makers will likely start sourcing voiceless drives from alternative sources in different regions and using other types of computer storage , including solid United States Department of State drives ( SSDs ) , iSuppli said .
The floods in Thailand may also cost Western Digital its top position in the HDD market . Given the unmediated shock of the disaster on its military operation , Western Digital is likely to suffer its status as the world ’s large shipper of HDDs , with its rank expected to fall to third in the fourth quarter , iSuppli read .
Western Digital temporarily suspended production in mid - October at its two factories in Thailand , which were inundated by floodwater , to protect its employee , equipment and readiness . Many of the company ’s part supplier have been impacted , leaving material for hard drive production well cumber , say John Coyne , the society ’s president and chief executive officerin a statementlast workweek on the company ’s internet site .
In the quarter to July 1 , Western Digital send about 54 million surd drive from its facilities in Thailand and Malaysia , with about 60 percentage come from its site in Thailand . Promising to do everything the company can to minimize any disruptions in its avail or pitch of its products , Western Digital has asked its client to “ stay patient with us for the next few quarters ” .
Western Digital ’s nominate attainment of Hitachi Global Storage Technologies , the hard private road unit of Hitachi , for US$ 4.3 billion in cash and stock , is stillawaiting antitrust clearancefrom the European Commission . The company now expects to come together the transaction in the fourth quarter , after having announced earlier that the acquisition would shut in the third quarter .
Seagatesaid while announcing its financial first poop fiscal resultson Oct. 20 that it expects a significant shock to its production storey while its factor suppliers in Thailand study to get their businesses up and campaign .
give the inclemency of the post and the extensive provision constraint due to the disturbance , the effects on the HDD diligence will be substantial and offer over multiple quarters , the ship’s company enjoin .
The impact of the floods on the Thai camera fabrication operations of Sony , Nikon and Canon has led iSuppli to predict a cliff in overall camera shipments in the fourth quarter and possibly in the first quarter of 2012 . Sonysaid last monththat it was force to postpone the launching of its novel NEX-7 high - end portable digital camera and cut off yield of another because a factory in Thailand was affected by the implosion therapy .
