Seagate, the world's second largest maker of hard disk drives, has two Thailand facilities: Seagate Teparuk, which produces head stack and head gimbal assemblies, and Seagate Korat, which manufactures slider, head assembly and head gimbal assembly as well as hard drives. At present, Seagate's own facilities in Thailand are running at full production, but the company experiences supply issues with third-party component manufacturers, which significantly reduces Seagate's ability to produce HDDs.
"Our business priority is to work with our external component suppliers, supporting their efforts to rebuild the supply chain as quickly as possible. We expect to experience significant impacts to our production levels, while our suppliers work together businesses up and running. Given the severity of the situation and the expense of supply constraints caused by the disruption, including those described by our primary competitor, the effects on our industry are likely to be substantial and will extend over multiple quarters," said Steven Luczo, chief executive officer of Seagate.
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