Fujitsu to Sell its Unprofitable Hard Drive Business to Western Digital

A new rumour is spreading around the net, claiming that Fujitsu is in talks with WesternDigital to sell its hard disk drive business. Currently WD is the second-largest hard disk drive maker in the world behind Seagate Technology. Fujitsu's HDD business is ranked sixth. If there's a deal between WD and Fujitsu, it would raise WesternDigital's market share to almost the same level as the market leader Seagate Technology. A possible acquisition would include Fujitsu's plants in Japan, the Philippines and Thailand with a total of 15,000 workers.

It's necessary for Fujitsu to review its disk-drive operations because it's facing severe competition in an industry that requires large commitments to capital spending for companies to be competitive,

said Yukihiko Shimada, an analyst at Mitsubishi UFJ Securities Co. The deal would be finalized by the end of the year, according to experts. WD and Fujitsu representatives declined to make any official statements and confirm the story.