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Hitachi to double 2.5in drive production

Brings forward ramp by a year

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Hitachi is ramping-up production of 2.5in hard drives fast in response to soaring demand, according to today's Nihon Keizai Shimbun. This will constitute a welcome piece of good news for the company, which in common with other Asian giants has been hit badly by the semiconductor slump. Hitachi has been concentrating on boosting its share of the 2.5in drive market for the last couple of years, and originally planned to double production to 500,000 in 2000. But this has now been brought forward to 1999. The sector is reported to be seeing double-digit annual growth, caused by booming sales of notebook computers. Margins in 2.5in also tend to be more resilient, particularly in the areas of very high density and ultra-slim drives. ® Click for more stories

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