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Econ 4450 (2010) Note 12

Econ 4450 (2010) Note 12 - Econ 4450 Not e 12 1 Case 6...

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Econ 4450 Note 12 1
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Case 6 Singapore and the Hard Disk Drive (HDD) Industry Hard disk drive industry is important in the digital era For the last quarter of a century, its story is closely linked with one firm – Seagate, a start up in ’78, still the world’s top firm for many years, largest employer in Singapore, also Thailand and one country – Singapore, till 2004, the largest HDD exporter and reached a 63% market share in 1997 There would be no Seagate without Singapore It is an industry using quantum mechanics – the spin of electron 2
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Rapid technical progress - Kryder’s Law: areal information density doubles every 14 months 3
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Stunning efficiency gain: $/Gigabyte – $193,000.00 Jan. 1980 .07 July 2009 4
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1988 2007 Explosive market expansion: Units sold (million) 15.8 516.0 5
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1988 2007 Explosive market expansion: Units sold (million) 15.8 516.0 Vanishing suppliers Major firms 62 5 Seagate West digital Hitachi Toshiba Samsung 6
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7 Seagate found production in the US too costly, it moved much of its production operations to Southeast Asia.
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