One of the oldest brands in the storage world is on the brink of bankruptcy. Resonac, a hard disk film manufacturer, has announced that it will close its main factory as demand for HDDs falls. The company, one of the manufacturers of thin films used in HDDs, is preparing to lay off 600 people in Taiwan.
Hard disk manufacturer Resonac fires 600 people
The HDD giant is reported to have entered a phased shutdown. It was stated that the company could not resist the increasing adoption of SSDs in the storage market. According to storage analysts, Seagate and Western Digital’s HDD shipments declined by 43 percent.
Resonac will lay off 600 people working at the Hsinchu Science Park in three phases. Meanwhile, in September, 40 companies in the region cut 165 jobs. Most of this number came as Resonac struggled, but the HDD giant could not hold out much longer.
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The company’s bankruptcy is also a big blow for the HDD world. But the Hsinchu Science Park is experiencing growth across industries. Total employment in the park increased by 2 percent year-on-year, and there are now 572 companies.
The HDD manufacturer, first established as Showa Denko Materials, is diversifying into different fields. The company, which generates most of its revenue from HDD films, seems to be moving into the world of high-capacity data center storage.
The impact of Resonac’s factory closure on the supply chain remains to be seen. But it highlights the shrinking of the HDD world and the expansion of SSDs.
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