Mechanical Hard Drive Prices Expected to Surge Amid Key Supplier Shutdowns

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Key suppliers of mechanical hard drives have recently ceased factory operations, leading to anticipations of a significant price increase in the coming year. Reports indicate that Lisenko Technology Co., Ltd., formerly known as Heqiao Technology, a major producer of films used in mechanical hard drives, is on the brink of closing its factory located in the Hsinchu Science Park, Taiwan, China. This impending closure is resulting in phased staff layoffs.

Lisenko Technology, headquartered in Japan with over 25,000 employees, stands as one of the few manufacturers specializing in films essential for HDDs. The factory established in 1990 was primarily dedicated to producing sputtered thin film disks. As shifts in industry dynamics have rendered hard disk production in Taiwan less competitive, Lisenko's decision to shutter the facility is causing nearly 600 employees to face termination in multiple phases.

2023 was poised to be the year of the 30TB HDD, with both Seagate and Western Digital aspiring to reach this milestone. Western Digital recently announced the commencement of mass shipments for its 10-disk 24TB CMR series mechanical hard drives, targeting ultra-large-scale, cloud, and enterprise data center clientele.

Additionally, Western Digital's introduction of a 28TB SMR HDD in August, well-received by industry customers, has prompted plans for increased production. Furthermore, the company aims to launch a 26TB SMR HDD EB in the first quarter of the fiscal year 2024 to further solidify its position in the SMR market.

Source: ithome

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