Capital Equipment Costs to Fix Flooded HDD Factories in Thailand Substantial
The recent monsoon floods in Thailand has affected many high technology industries significantly.
Major plants for Western Digital and Toshiba, along with several other major HDD component suppliers, were flooded. Even Seagate and Hitachi, which were not flooded, were also shut down for a few weeks.
Because of this, there will be a shortage of HDDs starting Dec 2011 and throughout 2012. Replacement and repairing capital equipment in the flooded plants will lead to large increases in capital equipment, with the cost likely to amount to $1 billion.