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Major HDD component supplier lays off employees, prepares to close

Báo Thanh niênBáo Thanh niên27/11/2023


According to Tom's Hardware , 40 companies based in Taiwan's Hsinchu Science Park laid off 165 employees in September. That number increased significantly in October, with 48 companies laying off 496 employees. A large portion of the October layoffs stemmed from the collapse of Resonac.

Nhà cung cấp linh kiện HDD lớn sa thải nhân viên, chuẩn bị đóng cửa - Ảnh 1.

HDD hard drives are becoming less attractive compared to SSD drives

There are likely to be further repercussions in November, with sources saying Resonac is planning to cut staff in three waves and completely close its factory in Hsinchu, where the company once employed 600 people.

Despite some of the job losses at Resonac, the report found some good news: overall, Hsinchu Science Park companies employed 3,602 more workers than they did at this time last year (a 2% annual increase). There were 572 manufacturers in the park as of the end of October 2023, seven more than at the same time last year. That said, not all technology segments are doing as poorly as HDDs.

Resonac's massive layoffs are not too surprising to the community as the HDD industry and the companies that support it are not expected to thrive in 2023. The rise in popularity of SSDs, with increasingly attractive prices per GB, better performance, and compact designs, has been attracting significant consumer interest.

Increasing competition from SSDs in the mainstream market has caused Seagate and WD to ship 43% fewer HDDs than they did in the same period last year. However, industry experts say demand for HDDs in data centers will continue to grow strongly for years to come.



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