Feeds

Chinese admirer fancies WD's 3.5-inch hardness - insider

Watchdogs would favour Great Wall of China's disk fab chunk slurp

Internet Security Threat Report 2014

Could China become a major hard disk manufacturing base if Great Wall snaps up a slice of Western Digital's 3.5-inch drive business?

WD is trying to buy Hitachi GST, but EU and Chinese regulators said the sale would limit competition in the HDD market - unless WD sells off some of its 3.5-inch disk fab capacity in amelioration.

The only other drive makers who could buy this are Seagate and Toshiba, both of whom would see it as a forced sale and might even require WD to pay them to take the excess capacity off its hands.

An industry insider suggested that Great Wall Technology could step forward at this point. El Reg last heard of this Chinese business in 2008 when one of its subsidiaries, spinning-disk biz ExcelStor, wanted to merge with Iomega, only for EMC to snatch Iomega away with a better offer.

Now with WD having to offload some 3.5-inch HDD manufacturing, as forced encouraged to do so by the Chinese government, Great Wall could see this as an opportunity to get a leg up into the 3.5-inch arena. With Seagate seeing continuing unmet demand in that business, and 3.5-inch devices providing the dominant capacity tubs while flash holds hot data, this could be seen as a strategically important business by the Chinese.

If Seagate bought WD's excess 3.5-inch business then that wouldn't increase competition overall and it's unlikely the EU would approve it. That leaves Toshiba as WD's only purchaser in the mainstream HDD industry, unless Great Wall's ExcelStor is in the frame. Both the EU and Chinese regulators are likely to bless a WD-ExcelStor deal. The more you think about it, the likelier it seems. ®</p

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
Intel, Cisco and co reveal PLANS to keep tabs on WORLD'S MACHINES
Connecting everything to everything... Er, good idea?
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.