Hard Drive Shortage

There are a couple of things that have transpired in the computer industry in the last month that we believe are worthwhile to note.

First, a typhoon caused massive flooding to parts of Thailand at the end of August.   This flooding has covered about one-third of Thailand’s surface area.  What does this have to do with technology you ask?  The flooding has had serious impact on the country’s manufacturing business, notably the manufacturing of computer hard drives.  Thailand accounts for approximately twenty-five percent of the world’s hard drive production.  Supply chains for hard drive manufacturing in other countries will be disrupted as well.  Factories that produce components used in over 70% of worldwide hard drives produced by Western Digital, Seagate, Hitachi, Toshiba and Samsung have been damaged as well.  Industry analysts are noting that the reduced manufacturing capacity will cause inventory constraints and increased prices throughout the end of the year and into the first quarter of next year.

Please keep this in mind. If you have any questions, please feel free to contact us at our office. 970-243-3311