Seagate unsure of HDD production impact from Thailand floods

Like its main competitor Western Digital, HDD manufacturer Seagate has also seen operations in Thailand affected by deadly, record-breaking floods. The company provided details this week on its facilities in the country, admitting it’s still unable to say just how bad the damage is or how its production output will be impacted.

Seagate unsure of HDD production impact from Thailand floods

According to Seagate, its factories in Teparuk and Korat are up and running. The former produces head stacks and gimbals, while the latter specializes in multiple HDD components. Additionally, it claims all regional employees are safe and even able to get to work.

“Seagate is actively managing its supply chain and factory output to align production capabilities and optimize its build schedule to meet customer requirements,” said the company in a statement to the press.

The main problem facing the company is a disrupted supply chain which prevents vital HDD components from reaching the plants. Seagate refused to attach a number, but “anticipates hard drive supply will be constrained throughout the current quarter” – not unlike rival Western Digital’s claim.

Seagate and Western Digital are the top global HDD manufacturers, holding approximately 90 percent of the total market. Toshiba/Fujitsu retain the third spot.

Contrary to the predicted third quarter shipment shortfall, research from IHS iSuppli showed HDD shipments grew in the second quarter from 160.4 million to 167.1 million. The market analysis group actually chalked up the increase to the massive earthquake that rocked Japan in March, framing it as an unexpected motivator. The earthquake initially had a disastrous effect on local electronics factories and manufacturing facilities.

Seagate said it will release more information during a conference call on October 20, adding “the situation is dynamic, and circumstances can change quickly and frequently.”