As it turns out, Western Digital – despite its name – manufactures a lot of its HDDs in the Eastern hemisphere, namely Thailand and Malaysia. Severe flooding in Thailand has led the company to close its Bangkok facilities for an undetermined amount of time in order to protect the safety of its workers and factories – which could possibly affect HDD stocks in the next quarter.
“The flooding is causing problems with the region's infrastructure, including transportation and utilities, and has resulted in the inundation of some supplier facilities and employee homes,” the company wrote in an announcement released today. Western Digital relies on local sources for components. The company stresses that conditions are changing rapidly and the extent of the damage – and the duration of the shut down – cannot be assessed at this time. It hopes to provide an update during an investment community conference call a week from now.
Western Digital’s Thai and Malaysian facilities shipped out around 54 million HDDs between April and June, and just over half of those came from the factories in Thailand. The company says all “37,000 Thailand-based employees are deemed safe at this time,” although as previously mentioned, some of their homes have been flooded.