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WD acquires ST HD Controller IP and Team |
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Written by David Stellmack
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Monday, 28 July 2008 05:53 |
Back to the future
In an announcement that took many of us by surprise, Western Digital has announced that they will acquire ST Microelectronic’s Hard Drive Controller IP and Team. The announcement is sort of a back to the future purchase, as WD was in the HD controller business when it acquired Tandon back in 1988.
According to WD CEO, John F. Coyne, by bringing this technology back in-house WD design teams will be able to enter new hard drive markets at a much faster pace. Also, by bringing the capability back in-house they will be able to improve efficiency.
WD has embarked on a strategy to be able to control as many parts of the hard drive as possible. With the other companies that it has acquired, they now have the ability to make the heads, platters, media, controller and assembly. They can respond very quickly and do not have to depend on other vendors to make their product. This also should give WD the ability to better control costs, which should lead to cheaper drives for consumers.
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