AI has taken all of Western Digital's production capacity; as a result, the company cannot produce hard drives.
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15:53, 16.02.2026
Western Digital recently announced that it would be unable to produce hard drives due to a lack of production capacity. The company is considered the largest manufacturer of HDDs, and its consumer product volume has fallen to 5%. The main reason for this shift was the AI segment.
The situation on the market with HDD prices
Due to the high demand for AI, NAND, and DRAM, stocks are gradually declining, and experts warn that this situation may also affect hard drives. At this stage, HDD prices have already risen, mainly due to high demand in China and the US.
CEO Irving Tan said that almost all stocks for the current year have been sold out. The company has signed contracts with key customers for 2026, and with some already for 2027 and 2028.
The company's revenue from cloud services is approximately 89%, and revenue from consumer services is 5%. AI requires large amounts of data, and cloud service providers use more reliable and cheaper options - hard drives.
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