Leading Japanese electronics firm, Toshiba has announced that it has taken over the hard drive business of rival Fujitsu with an eye on increasing its share in the netbook hard drive market.
Fujitsu’s hard drive business has been suffering a downturn for quite some time now and with Toshiba taking over, things may start to look up at the hard drive division.
The deal which is valued at $334 million was initially first announced in February, however it took a lot of time to materialise and it had to negotiate queries from an anti trust regulator.
Taking over Fujitsu’s hard drive business makes strategic sense for Toshiba as it prepares to compete in a hard drive market which is dominated by bigger and better known rivals like Seagate and Western Digital Corp.
Though Toshiba has long way to go before it can catch up with industry leaders, the acquisition points to the increasing competition in the hard drive market and also illustrates the need for attaining economies of scale.
Already there are rumours that suggest Seagate’s long standing run as the industry leader in volume output may end in near future with WDC expected to surpass it. HGST is the other big name in consumer/hard disk storage.
Solid state is the other red hot storage segment growing blindingly fast. Intel's latest solid state drives are excruciatingly fast and not only cost half the previous generation but are also significantly faster and twice as big.