Not Taiwan, THAILAND! They had massive flooding, disrupting hard drive manufacturing big time. It will likely be months after full production is restored before enough new supply makes it into the channel to bring prices back down.
Edit: Of course, there was a lot of supply already in the channel, and I'm not so naive as to believe that there hasn't been and won't be gouging. Still, I'm glad I don't anticipate needing a hard drive any time soon.