KUALA LUMPUR (July 18): Western Digital Corp is reported to be shutting down its hard disk drive (HDD) manufacturing facility in Petaling Jaya, Selangor by the end of next year, after over 20 years in operation.

According to The Star report today, Western Digital (Malaysia) Sdn Bhd managing director Gouw Kim San said the move is in response to the declining demand for HDDs in the long-term.

Employees impacted by this move will also receive assistance, including severance compensation and upskilling support.

“Western Digital Corp is continually evaluating and transforming its business to deliver value to customers and remain competitive as a data technology leader. This transformation requires that the company to take difficult but important actions, including optimisation of its large-scale manufacturing facilities located throughout Asia,” Gouw  said in the report.

US-based Western Digital entered Malaysia in 1973, initially making custom semiconductors before transitioning to manufacturing of hard drives. In 2011, a US$1.2 billion (RM4.8 billion) research and development facility was added to the 92,903 sq m manufacturing plant in PJ.

The shutdown will not eliminate Western Digital’s presence in Malaysia altogether, as the company still has manufacturing sites in Johor and Sarawak, the report added. 

Gouw was also quoted as saying that Western Digital will shift its focus from HDD to SDD (solid state drive) and NAND flash production in Malaysia, with plans to expand its SSD manufacturing plant in Penang. 

“The company is in the final stages of commissioning its second SSD facility in Penang, which will go into production in the coming months,” he added.

Western Digital will retain a centre of excellence in Selangor, housing several key engineering teams, core operational planning and regional support functions. — theedgemarkets.com

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