Feeds

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

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

Maximizing your infrastructure through virtualization

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

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.