Taipei, Wednesday, April 16, 2014 22:06 (GMT+8)
partly cloudy
Taipei
24°C
Digitimes Insight: WD buys HGST to increase HDD market share
Hana Hu, DIGITIMES Research, Taipei [Friday 11 March 2011]

Japan-based Hitachi on March 7 announced that it has sold subsidiary Hitachi Global Storage Technologies (HGST), a top three hard disk drive (HDD) maker globally, to Western Digital (WD) for US$4.3 billion, which includes 25 million WD shares worth about US$750 million.

Since Toshiba acquired Fujitsu's HDD operation in April 2009, the industry has consolidated into five main players - WD, Seagate, HGST, Toshiba and Samsung Electronics. The top two companies, WD and Seagate, were separated by less than one percentage point in market share. With the latest HGST acquisition, WD is looking to widen its lead over the rest of the field.

Hitachi's quick decision and sudden change of heart stunned the market. In November 2010 when the company released results for the fiscal second quarter, it pointed out that HGST had improved financially and was scheduled to be listed on NASDAQ. In just a few months, Hitachi has changed plans, which could be an indication that the HDD industry is indeed seeing stronger-than-expected threats from SSD and cloud computing technologies.

MSI product press release
China touch tracker
2014 global smartphone market forecast
  • China flat panel display industry outlook, 2013-2016

    This Digitimes Research Special Report outlines and analyzes the key trends and players that are influencing the continued development of China large-size and small-to medium size TFT LCD panel industry, while providing related growth forecasts for the industry through 2016.

  • TD-LTE market developments and forecast, 2014-2016

    TD-LTE has become the mainstream global choice for the construction of 4G asymmetric frequency spectrum networks. This Digitimes Research Special Report examines the current global status of TD-LTE, and forecasts developments in the TD-LTE supply chain in China and worldwide through 2016.

  • ASPs of TD-LTE chips to remain stable initially as suppliers are limited

    While a number of IC vendors have begun shipping chips supporting TD-LTE, including base band chips, radio frequency chips, APs, SoC solutions and soft modems, shipments of base band chips account for a majority share of total TD-LTE chip shipments currently, according to Digitimes Research.