Special Update – Thailand flooding impacts disk drive industry
As has been widely reported, the severe flooding in Thailand is a tragic
situation for families and businesses across the region. To aid in the relief
and recovery efforts, Seagate is donating US$1 million across a few key organizations
With regard to Seagate business operations in Thailand, our component and
drive assembly factories are operational and accessible. Our production is
not constrained by either internal component supply or by our ability to
assemble finished products. Rather, we are constrained by the availability of
specific externally sourced components. Seagate now expects to ship 41
million to 45 million hard drives in the current quarter, a change from the
prior projection of 40 million to 50 million units.
Throughout the entire industry, demand will significantly outstrip supply at
least for the December quarter and the supply disruption will continue for
multiple quarters. Unconstrained demand was expected to be approximately 180
million units for the December 2011 quarter. It is now expected that industry
shipments will be limited to approximately 110 to 120 million units.
As such, our business priorities are focused on supporting our external
component suppliers’ efforts to rebuild the supply chain as quickly as
possible, and to work with customers to strategically align their near- and
long-term requirements to our production capability. We are aligning our
production schedules and product builds to best support both our suppliers
and our customers. Our product roadmap has not changed. Continue to refer to
the SPP Partner Portal
for the most recent roadmap.
Please understand that this is an evolving situation that we are diligently
monitoring on a daily basis. Foremost in our minds is the tragic nature of
this disaster, and our thoughts are with those personally affected.