Severe Flooding Disrupts Hard Drive Production in Thailand

Brutal flooding has hit Thailand recently. The flooding, which killed hundreds, severed railroad links across the country, shut highways and damaged many buildings, naturally caused disruptions for the local industry. Two of the world's largest producers of hard drives - Seagate Technologies and Western Digital Corp. - on Wednesday provided updates on the impact of the flooding.

Currently, all Seagate factories in Thailand are operational and there are no logistical issues with employees reaching its factories. However, the hard disk drive component supply chain is being disrupted and it is expected that certain components in the supply chain will be constrained. Given the volatility of the situation it is unclear what the magnitude of the supply chain disruption will be to Seagate’s hard disk drive output from its Thailand operations.