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WD May Have Rough December Due to Flooding

By - Source: Western Digital | B 22 comments

WD may not be able to meet customer demand for its products in the December quarter.

Western Digital said on Monday that it's facing a weak December due to the Thailand floods. According to the company, rising water penetrated the Bang Pa-in Industrial Park's "flood defenses" over the weekend and entered WD's manufacturing facilities, submerging some of the equipment.

To make matters worse, water infiltrated the location of the company's other manufacturing plant in Thailand, Navanakorn Industrial Park, on Monday morning. So far there's no indication that the water has entered the facilities, and the company currently reports that all employees in Thailand remain safe.

"The company now expects that the flooding of its Thailand facilities, combined with flood damage to the company's supply chain in Thailand, will have significant impact on the company's overall operations and its ability to meet customer demand for its products in the December quarter," WD said on Monday.

WD's other facilities in Malaysia, Singapore and the U.S. are fully operational. The hard drive manufacturer said that further updates on the Thailand situation will be provided during its investment community conference call on Wednesday, October 19, 2011.

Western Digital is just one of many affected by the floods in Thailand including Seagate, chip makers ON Semiconductor and Microsemi Corp. Analysts predict that the predicted supply constraints may have a significant impact on the broader computer industry, leading to higher prices and a shorter list of components later this year or early next year.

"If this lingers on more than a quarter, there could be outright product not available," Needham analyst Richard Kugele said. "Right now there's definitely pretty dramatic shortages and pricing is increasing significantly."

Last week Seagate said that its Thailand-based facilities are fully operational, and there are no logistical issues with employees reaching its factories.

"The hard disk drive component supply chain is being disrupted and it is expected that certain components in the supply chain will be constrained," the company added. "Given the volatility of the situation it is unclear what the magnitude of the supply chain disruption will be to Seagate’s hard disk drive output from its Thailand operations."

Seagate also said last week that it anticipates hard drive supply will be constrained throughout the current quarter. But the company also pointed out that the situation is dynamic, and circumstances can change quickly and frequently. That said, the company plans to reveal more on its quarterly conference call on Thursday, October 20, 2011.

"This devastating natural disaster has tragically taken hundreds of lives and displaced many families," Seagate said. "At this time, Seagate reports that all of its employees in the region are safe.

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Top Comments
  • 21 Hide
    igot1forya , October 17, 2011 6:15 PM
    Sounds like they need to a choice, move the manufacturing to the Western Hemisphere or rename the company to make it more accurate - Eastern Digital.
  • 14 Hide
    illo , October 17, 2011 6:42 PM
    sonofliberty08i don't use their garbage drive anyway


    what YOU use is irrelevant to the article.
  • 11 Hide
    geekapproved , October 17, 2011 7:00 PM
    Garbage? Really? WD has been making hdd's for decades, offer the best warranties and I have NEVER personally had a failure. Wish I could say the same for Seagate. They can take their little 2yr warranty (oem) and stick up you know where.
Other Comments
  • 21 Hide
    igot1forya , October 17, 2011 6:15 PM
    Sounds like they need to a choice, move the manufacturing to the Western Hemisphere or rename the company to make it more accurate - Eastern Digital.
  • 4 Hide
    _Pez_ , October 17, 2011 6:20 PM
    Igot1foryaSounds like they need to a choice, move the manufacturing to the Western Hemisphere or rename the company to make it more accurate - Eastern Digital.

    jajajaj :D 
  • 4 Hide
    noblerabbit , October 17, 2011 6:20 PM
    Flooding in Thailand...
    I always wondered how $5 per day of local intimate hospitality from a near 3rd world country had anything to do with shortage of Harddrives across the channel, until I read that actual manufacturing plants exist there. my bad, sorry.
  • 14 Hide
    illo , October 17, 2011 6:42 PM
    sonofliberty08i don't use their garbage drive anyway


    what YOU use is irrelevant to the article.
  • 8 Hide
    illo , October 17, 2011 6:56 PM
    wiinippongamerWD IS indeed garbage



    also irrelevant.
  • 11 Hide
    geekapproved , October 17, 2011 7:00 PM
    Garbage? Really? WD has been making hdd's for decades, offer the best warranties and I have NEVER personally had a failure. Wish I could say the same for Seagate. They can take their little 2yr warranty (oem) and stick up you know where.
  • 2 Hide
    gm0n3y , October 17, 2011 7:24 PM
    So WD and Seagate are both looking at having product shortages. Could be a good time to buy a hard drive before prices go up.
  • 0 Hide
    memadmax , October 17, 2011 7:28 PM
    NOOOOOO!!!!!

    I'm on my way to shovel some sandbags and pump water... wish me luck.

    Oh and thai chicks are hot too =D
  • 5 Hide
    ltbob , October 17, 2011 7:29 PM
    Get well soon WD
  • -1 Hide
    joytech22 , October 17, 2011 8:16 PM
    Damn.. I feel bad for WD.

    At least here there's like a bazillion WD 1TB+ drives in those 5+ computer shops I live near. Plan on snagging a 3TB drive later this year.
  • -6 Hide
    wiinippongamer , October 17, 2011 9:47 PM
    GeekApprovedGarbage? Really? WD has been making hdd's for decades, offer the best warranties and I have NEVER personally had a failure. Wish I could say the same for Seagate. They can take their little 2yr warranty (oem) and stick up you know where.



    I've had 2 WD drives fail on me within 6 months.
  • 6 Hide
    drwho1 , October 17, 2011 9:50 PM
    In other news: WD has been working on water cooling solutions for hard drives.
    Hard drives are been tested under water, more to come as we get more details.
    stay tuned.
  • -2 Hide
    legacy7955 , October 17, 2011 10:10 PM
    Igot1foryaSounds like they need to a choice, move the manufacturing to the Western Hemisphere or rename the company to make it more accurate - Eastern Digital.


    Exactly!

    Most of the consumers that buy them are probably in the US anyway.

    BRING THE MANUFACTURING JOBS BACK TO THE USA!

    A country that doesn't make things isn't a viable society.

  • 0 Hide
    jn77 , October 17, 2011 11:38 PM
    When is WD building Noah's Ark?
  • 1 Hide
    alidan , October 18, 2011 4:38 AM
    legacy7955Exactly!Most of the consumers that buy them are probably in the US anyway. BRING THE MANUFACTURING JOBS BACK TO THE USA! A country that doesn't make things isn't a viable society.


    yea, but than you have tons of extra costs, and no company is willing to cut into its proffits to bring it here, so they talk about how an ipad would cost 2000$ and such.
  • 0 Hide
    eddieroolz , October 18, 2011 4:57 AM
    Read: Buy your HDDs now!
  • 0 Hide
    Jath , October 18, 2011 2:10 PM
    GeekApprovedGarbage? Really? WD has been making hdd's for decades, offer the best warranties and I have NEVER personally had a failure. Wish I could say the same for Seagate. They can take their little 2yr warranty (oem) and stick up you know where.

    I won't say WD drives are garbage like the other guy, but my personal experience was bad with them. I had two 1TB external drives that failed unexpectedly and I lost all the data that was on them. While internal drives are good for WD, I don't like their external ones.

    For Seagate, I've always loved Seagate. I personally haven't had a problem with them yet. But, that's not why I wanted to mention Seagate either. All the drives I've bought that are Seagate come with a 5 year warranty, so where are you buying them that they come with a 2 year?

    All in all though, personal preference.
  • 0 Hide
    mr_tuel , October 18, 2011 3:58 PM
    Might HDD prices go up some, or at least a delay in innovation?
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