Thailand Flooding Affecting Hard Drives
Posted in: General, Author: yobitech (November 4, 2011)
The recent flooding in Thailand has been the worse in decades. The people are now threatened with disease from the flood water and facing many other hardships.
The recent flooding in Thailand has been the worse in decades. The people are now threatened with disease from the flood water and facing many other hardships.
The floods has also caused a hiccup in the world’s supply chain of hard drives. Thailand produces 40% of the world’s hard drives. With approximately 1000 factories closed from the floods, some of them making computer hard drives, companies will need to make contingency plans to obtain required parts for their businesses.
Affected industries include PC makers, the Auto makers, and other well known tech giants who are increasingly using storage such as Facebook, Google, and Amazon.
Analysts estimate that there will be 50 million fewer drives produced in the 4th quarter, or a -30% decrease in production.
Experts are predicting a substantial increase in the price of hard drives in the coming months as production is constrained.