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December 31, 2007

Hitachi and the disk drive saga

As the tech world turns…

The Nikkei business daily (which I do not read enough) in Tokyo reported Sunday that Hitachi Global Storage Technologies Inc has stopped production of 1-inch hard drives and plans to stop shipping 1.8-inch drives next summer.
Of course, Hitachi denied earlier this month that it is getting out of the disk drive business. And it also denied that in September.

Hitachi has a disk drive facility in Rochester with about 200 employees or at least it did in 2003. I think a big part of what is does there is design and engineering work.

IBM sold its hard disk drive unit to Hitachi in 2003 for $2.05 billion. That sale spawned the formation of the San Jose, Calif.-based Hitachi Global Storage Technologies, which oversees the drive business.

It has 11 facilities throughout the world, including the Rochester plant. In 2003, about 180 IBM employees became Hitachi GST workers.

Hitachi has not posted a profit in its hard disk drive business since buying it from IBM.

I'll keep checking on this one.


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