via Flickr user DigitalGlobe-Imagery
The many floods that occurred during 2011 monsoon season in Thailand have greatly devastated a large part of the country. Reports say that over 12.8 million people have been affected by this disaster. But what does this mean for the once bustling electronics production in these areas? Seagate’s CEO Stephen Luczo paints a dreary picture:
[it will be] a difficult road ahead for the industry given that many of Seagate’s own 130 or so suppliers are still under three feet of water.
This disaster is expected to leave the industry 50 million short of their 180 million HDD production target this quarter alone. By the time they regain capacity demand will have risen immensely. Prices have already shot up 20%, next year they will surely be higher.