Hitachi Global Storage Technologies (HGST) had transferred a sizeable portion of its enterprise hard drive manufacturing operations from the Philippines to its Singapore Global Center by the end of 2003. Currently, about 55% of the world’s HDDs are manufactured in Singapore. HGST believes that the move to Singapore will improve the supply chain efficiency since the cost of transporting drive components from various HGST sites can be reduced. The Singapore Global Center, which employs over 10% of HGST’s worldwide workforce, will take on the manufacturing of Hitachi’s next-generation 10,000 rpm and 15,000 rpm enterprise drives. This next-generation 10,000 rpm enterprise hard drive will be the company’s first consolidated enterprise product since Hitachi’s acquisition of IBM’s hard drive business in 2002. This increased manufacturing effort in Singapore is expected to free up the company’s resources particularly in Japan and the US. These HGST sites will then proceed to focus on developing small form factor and other next-generation enterprise hard drives, thereby accelerating Hitachi’s development schedule for such products.

Hitachi Global Storage Technologies (HGST) had
transferred a sizeable portion of its enterprise hard drive manufacturing
operations from the Philippines to its Singapore Global Center by the end of
2003. Currently, about 55% of the world’s HDDs are manufactured in Singapore.
HGST believes that the move to Singapore will improve the supply chain
efficiency since the cost of transporting drive components from various HGST
sites can be reduced. The Singapore Global Center, which employs over 10% of
HGST’s worldwide workforce, will take on the manufacturing of Hitachi’s
next-generation 10,000 rpm and 15,000 rpm enterprise drives. This
next-generation 10,000 rpm enterprise hard drive will be the company’s first
consolidated enterprise product since Hitachi’s acquisition of IBM’s hard drive
business in 2002. This increased manufacturing effort in Singapore is expected
to free up the company’s resources particularly in Japan and the US. These HGST
sites will then proceed to focus on developing small form factor and other
next-generation enterprise hard drives, thereby accelerating Hitachi’s
development schedule for such products.

In 2004, HGST aims to achieve volume and market
share growth across all segments of its business. One of HGST’s business and
technical strategies for 2004 is to leverage on its strength in storage
miniaturization to move the industry to smaller form factors, such as the
2.5-inch HDD used in server applications and the 1.8-inch in notebooks. In
addition, the company plans to aggressively participate in developing and
providing "compelling solutions" for non-traditional applications, such as
automobile navigation systems, MP3 players, PDAs, entertainment systems, digital
cameras, personal video recorders and even game boxes. The company is already
shipping the 1.8-inch hard drives in 20-Gbyte and 40-Gbyte capacities. These
drives are said to have been designed to address the growing market opportunity
in providing advanced storage for non-traditional applications; and the
Singapore Global Center is going to be part of the expected growth for 2004.