NEC to exit hard disk drive production

NEC announced Friday that it plans to end production of hard disk drives and exit the market altogether.

The company currently operates one plant in the Philippines, NEC Computer Storage Philippines Inc., through a technology license agreement with IBM Corp. At the factory, which is at Binan near Manila, 3.5-inch disk drives are produced and supplied to IBM under contract.

"The current production contract with IBM will expire in December," said Kosuke Yamauchi, a spokesman for NEC, "and if we want to enter new production we will have to invest more money but we cannot expect a worthwhile return (on the additional investment)."

The plant currently employs 1,400 people and all will be laid off as a result of the decision, said NEC.

The company's announcement came as it disclosed earnings figures for the period from April to September this year. Largely as a result of losses from the PC components and semiconductor division, the company slid into the red for the period, it said.

NEC's move follows that of Fujitsu, which announced earlier this year that it plans to exit production of 3.5-inch hard disk drives. Fujitsu blamed tough competition in the market for its decision and said it would instead concentrate on design, development and production of 2.5-inch drives for portable and consumer electronics products.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

Computerworld
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?