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• W331399834 abstract "The Hard Drive Industry in the Philippines by G. R. Tecson * School of Economics University of the Philippines 1. Introduction The HDD industry in the Philippines is of recent vintage. Not considering the assembly of semiconductors that may have eventually found their way into HDDs, one can probably date the birth of the industry to March 1988, when Sunward Technologies Phils. Inc., an ISO 9002 certified, wholly-owned subsidiary of American-owned Sunward Technologies, began assembly and test of heads 1 . At about the same time – in May 1988 -- Tsukiden Electronics Industries, Inc. (TEII) was established as a subsidiary of an independent Japanese firm (the Tsukiden Group) whose production activities had been closely linked since the 1970s to NEC in Japan. Its first plant was established to produce 5.25” floppy disk drives (FDDs) and 3.5” HDDs (since 1989), including printed circuit boards (PCBs) and flexible printed circuit assemblies (FPCAs), as a subcontractor to NEC Technologies Hong kong Ltd. (hereafter NEC HK). Tsukiden sourced part of its thin film heads assembled by Filipino-owned Integrated Microelectronics, Inc. (IMI, established in August 1980) and from another Filipino-owned company, Ionics Circuits, Inc. (ICI, established in 1974) as a second priority source. Tsukiden assembled drives for NEC HK until August 1997, when a change in technology resulted in the closing of the Tsukiden factory and a shift in subcontracting to a dedicated factory of Laguna Electronics Inc. (LEI), also a subsidiary of the Tsukiden Group. These early investments were not immediately followed by others, however. The momentum was brusquely interrupted by the political instability into which the Philippines was plunged by the attempted coup d’etat of December 1989, a well-publicized kidnapping of a Japanese executive, and a recession that was to last till 1993. The current wave of HDD investments was ushered in by the entry in close succession of all of the Japanese majors, beginning with Hitachi Computer Products (Asia) Corp. in 1994, producing 2.5” HDDs. Hitachi was followed a year later in 1995 with the almost simultaneous establishment of Fujitsu Computer Products Corporation and Toshiba Information Equipment Inc. for the production of 3.5” and 2.5” HDDs, respectively. Under a year later, NEC Components Philippines was set up to produce printed wiring boards (PWBs) mainly for the automotive industry but also partly for HDDs. As mentioned earlier, NEC HK had already been operating in the Philippines as a ‘factory-less firm’, through Tsukiden as subcontractor. However, it also decided to start its own HDD assembly in the country and is currently (early 1999) constructing a new factory that will assemble 3.5” HDDs, with a production capacity double that of its present subcontractor LEI. It is expected to start commercial operations in May 1999. As will be discussed below in greater detail, except probably for Hitachi, Japanese assemblers followed the subcontracting route The writer acknowledges with deep gratitude the intellectual support and encouragement of the members of the Data Storage Industry Globalization Project, in particular Dr. Stephan Haggard, Dr. Richard Doner, and Dr. David McKendrick who read and commented on various drafts of the paper. Gratitude is also due to the Sloan Foundation for financial assistance which made the study possible. The usual disclaimer applies. Sunward, and its Philippine subsidiary, was eventually acquired by Read-Rite Corporation in 1994." @default.
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• W331399834 date "1999-01-01" @default.
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• W331399834 title "The Hard Disk Drive Industry in the Philippines" @default.
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