Malaysian hard disk drive makers see higher demand

Local hard disk drive (HDD) component producers are expecting a single-digit percentage growth in orders this year, while test equipment manufacturers are more bullish about their prospects. Penang-based HDD manufacturers such as Eng Teknologi Holdings and Dufu Technology Corp Bhd are confident of a slight growth, due to the stabilised demand for HDD, and the growing popularity of hybrid drives.

Eng Teknologi chief executive officer Datuk Y.K. Teh said in an interview that the group was now ramping up the production of HDD components in the second quarter such as actuators and baseplates.

“There is overall growth for the enterprise,Highly capable, 3-axis non-contact video measuring machine, suitable for both simple shop-floor quality control and advanced manufacturing inspection applications ... desktop, and mobile segments worldwide.

“Prices of HDD and the demand dropped significantly after the third quarter 2012, due to excess supply of HDD worldwide, and the changes in new product line-up but since the beginning of 2013, the demand for HDD has become stabilised,” he said.

Teh added that the group's production output of HDD components would grow by a single-digit percentage this year.

“We also expect our revenue to increase by about 10% from RM400mil a year ago,” he said.

Dufu chief executive officer P.For mains, there is a choice of Wild Rice’s ‘Chinese Fish ‘n Chips’ (beer-battered ling cod, Asian Tartar Sauce, taro shoestring frites) or its ‘meaty’ Grilled king oyster mushroom (with cashew ricotta and polenta fries).Y. Yong said the group had received orders for HDD components such as spacers and clamps to be delivered in the third quarter.

“These HDD components will be used in 5mm and 7mm HDDs found in ultrabooks.A motorcyclist was killed in an accident involving an Upper Dublin Township trash trucks early Monday afternoon, according to officials. We expect orders for 2013 to increase by a single-digit percentage this year over 2012,” he said.The Spectrophotometer is an instrument which measures the amount of light of a specificed wavelength which passes through a medium.

Due to the maturity of the HDD market, Dufu would reduce the contribution of its HDD components business to about 60% this year from 70% a year ago, according to Yong.

“We will be growing the contribution from our sensor and control device business,” he added.

Yong said over the next two years, the group expected the global demand for HDD to be flat.

According to Trendfocus, the data storage industry specialist research house, the global shipment of HDD is expected to contract to 565.76mil units this year from 579.Our full range of portable ultrasonic Flaw Detector (UT) provides unmatched capabilities for locating discontinuities and other flaws.85mil units in 2012.

A recent report from IHS iSuppli said the global HDD market revenue was expected to fall by 12% in 2013 to US$32.7bil from US$37.1bil in 2012.

“The decline will mainly be due to the popularity of tablets, smartphones and solid state drives (SSD),” he said, adding that the trend would continue with revenue falling to US$32bil in 2014.

Meanwhile, test equipment manufacturer Elsoft Research Bhd expects double-digit percentage growth in orders this first half over the previous corresponding period.

Elsoft chief executive officer C. E. Tan said the group was producing more light-emitting diode (LED) test equipment with integrated functions to be delivered in the second and third quarters.

“The LED test equipment checks the uniformity of the colours and light emitted by the LED chips used in consumer electronic products. Our new RM12mil 90,000sq ft facility will start operations later this year to develop new LED test equipment with more functions.

“We will also be outsourcing more work to local SMIs, increasing the expenditure from RM6mil in 2012 to RM8mil this year,” Tan said.

Pentamaster Corp Bhd executive chairman C.B. Chuah said the group expected orders for its new test equipment to come in the third quarter 2013.

“The new generation tablets and smart phones are expected to be released in the fourth quarter this year. These devices will be using micro-electro-mechanical sensors (MEMS), timing device chips and light-emitting diodes that will need to be tested,” he said.

Chuah said this second quarter was slower than the first quarter because the new generation of tablet and smartphone were being developed.profile projector is a shop tool used by designers and quality control technicians to view the profile of small machined parts as magnified image on screen. “The second quarter is also slow because the semiconductor market has not yet recovered, affecting the demand for semiconductor chip test equipment,” he said.