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Tuesday, January 27, 2009
Fujitsu to Discontinue HDD Head Business

High-tech giant Fujitsu Ltd. said Tuesday that it was ending production of hard disk drive (HDD) heads as part of an overhaul of the loss-making business.

Fujitsu's HDD head development and manufacturing operations are currently performed at the Nagano Plant. The company said that it would reassign plant employees working in the HDD head operations to other operations within the Fujitsu Group.

The facility will continue to make circuit boards and employees working in the HDD head business will be moved to new jobs, it added.

The HDD head production will cease at the end of March but Fujitsu is continuing talks with several companies over a possible sale of its overall HDD business. Toshiba has confirmed it is talking with Fujitsu about a possible purchase of the business.

Fujitsu has been trying to focus on core growth areas in recent years, ending production of plasma televisions, a technology it was the first in the world to sell, as competition had grown fierce.

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