Taiwan's Wistron to purchase Western Digital plant in PJ, confirming The Edge report

KUALA LUMPUR (Oct 20): Taiwan Stock Exchange-listed Wistron Corp is acquiring Western Digital Sdn Bhd's factory (pictured) located in Sungei Way Free Trade Industrial Zone, Petaling Jaya for RM120 million, according to the group's bourse filing with the Taiwan Stock Exchange today.

Wistron told the stock exchange that the group, through its subsidiary Wistron Technology (M) Sdn Bhd, has acquired Western Digital's Petaling Jaya factory.

The group's announcement confirmed's report titled “Taiwan's Wistron Corp to buy Western Digital PJ Factory” dated Oct 16.

It is learnt that the site will not be redeveloped. Instead, Wistron, which currently operates a facility in Klang, may commence a new business on the site, as opposed to manufacture of hard disk drive (HDD) operated by its former owner.

According to the Taiwanese media reports, Wistron chairman Simon Lin has said the newly acquired plant in Malaysia will be devoted to making internet of things (IoT) products, which is expected to commence operation in the first half of 2021.

Lin also told the media that the group had set its total production capacity outside China to be 50% by end-2021.

To recap, in March 2019, Western Digital said it was selling its HDD manufacturing facility following the company's deliberations regarding its staff, production and the ongoing business in Malaysia.

Western Digital ceased manufacturing operation in Petaling Jaya at end-2019 as part of its plans to rationalise its HDD manufacturing operations globally, owing to declining long-term demand for HDD.

Western Digital still has manufacturing facilities in Penang, Johor and Sarawak.

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