updated 07:30 am EST, Tue January 27, 2009
Fujitsu Quits HD Head Biz
Fujitsu on Tuesday said it would exit manufacturing hard disk drive read and write heads by the end of March. The move follows a "broader strategic review" of its overall hard drive business and will send employees working specifically on the drive heads at the Japanese company's Nagano plant towards other factories. The plant itself will also continue running as it makes boards for servers and telecoms equipment.
The news calls into question the future of Fujitsu's hard drive business as a whole, which depends on having drive heads; the company doesn't say whether it will source the critical parts from other companies or else is phasing out hard drives altogether.
Fujitsu has admitted that it's currently in talks with Toshiba and others for a possible sale to get rid of the business, which could lose as much as $112 million over the course of the company's current fiscal year.