WD closes Malaysia HDD plant in 2019 due to lower demand

Western Digital is closing down its HDD factor in Petaling Jaya, Malaysia. The plant opened in 1973 and has been making hard drives since 1994, but declining long-term demand for client HDDs is forcing WD to shut down the plant in 2019.

This leaves WD with two HDD production plants; a 1.7m square feet facility in Bang Pa-In, Thailand, and a 730k square feet facility in Prachinburi, also in Thailand.

WD isn't entirely leaving Malaysia though. The firm still has hard drive substrate manufacturing plants in Johor and Kuching, as well as SSD assembly and test facilities, media manufacturing lines, and R&D offices in Penang. In fact, SSD production capacity in Penang will be expanded.

Here's a statement from WD:

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.

Via: The Register