One of the oldest brands in the storage world is on the verge of bankruptcy. Hard disk film manufacturer Resonac has announced that it will close its main factory as demand for HDDs declines. The company, one of the manufacturers of thin films used in HDDs, is preparing to lay off 600 people in Taiwan.
Hard disk maker Resonac fires 600 people
It was stated that the HDD giant has entered the phase of gradual closure. It was stated that the company could not resist the increasing adoption of SSDs in the storage market. Seagate and Western Digital’s HDD shipments are down 43 percent, according to data from storage analysts.
Resonac will lay off 600 people working at Hsinchu Science Park in three phases. On the other hand, in September, 40 companies in the region laid off 165 people. Much of this issue was driven by Resonac’s struggles, but the HDD giant couldn’t hold on any longer either.
The bankruptcy of the company also means a big blow for the HDD world. However, Hsinchu Science Park is experiencing growth from different industries. While total employment in the park increased by 2 percent compared to the previous year, there are now 572 companies.
First established as Showa Denko Materials, the HDD manufacturer appears in different fields. The company, which generates most of its revenue from HDD movies, seems to turn to the world of high-capacity data center storage.
Over time, we will see the impact of Resonac’s factory closure on the supply chain. But this highlights the shrinking of the HDD world and the expansion of SSDs.
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