Western Digital Shuts Down Hard Drive Factory - Just not Enough Demand

With the advent of solid-state storage in pretty much every device you can think of, demand for mechanical HDDs has gone down, because users prefer fast and compact SSD storage over the mechanical dinosaurs. HDD manufacturers have been trying to stop the inevitable by coming out with new technologies to increase capacity - faster than SSD pricing can drop, but it seems they can't prevent the inevitable.

Now The Register UK reports that Western Digital will close its HDD factory near Kuala Lumpur, Malaysia. This is one of the company's first factories, operating since 1973. After the shutdown of the Malaysia plant, WD will be left with only two factories in Thailand, and is now trying to gain more share in the SSD market.WD provided the following comment:

In response to declining long-term demand for client HDDs, Western Digital has taken steps to rationalize its HDD manufacturing operations globally. The company will decommission its HDD manufacturing facility in Petaling Jaya, Selangor, by the end of calendar 2019. This transition will be executed in close collaboration with employees, customers, supply partners and other critical stakeholders.

The data technology industry is undergoing substantial change. This market transformation is driving increased adoption of SSDs and NAND flash in traditional HDD applications. The change has contributed to growth in SSD/NAND flash and declining long-term demand for client HDDs. Consequently, Western Digital plans to expand SSD manufacturing in Penang. The company is in the final stages of commissioning its second SSD facility in Penang, which will go into production in the coming months.