Hitachi Global Storage Technologies (GST) today said it will begin a three-year effort to relocate the majority of its media manufacturing operations from San Jose and Odawara, Japan, to Shenzhen, China.
Hitachi GST, a wholly owned subsidiary of Hitachi Ltd., acquired IBM's San Jose-based hard disk drive business in December 2002. The decision to begin shifting media manufacturing to China is part of Hitachi's plan to fully integrate its disk drive operations with those of IBM, the company said.
Hitachi GST expects to begin media manufacturing at its Shenzhen facility by the fourth quarter of 2004 and will be in full production by the first half of 2006. San Jose and Odawara will continue to be the primary media facilities through the end of 2005.
Hitachi said it plans to keep leading edge media development and manufacturing pilot lines in San Jose and Odawara to pursue new drive technologies such as perpendicular recording, but may relocate other personnel or resources to the Shenshen site.
Hitachi GST's media business has approximately 800 employees worldwide.