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These excerpts taken from the WDC 10-K filed Aug 20, 2008. Materials
and Supplies
The following products are the major components currently used
in the manufacture of our hard drives:
Table of Contents
We also use several other components in our hard drives such as
seals, filters, plastic molded parts, capacitors, resistors,
connectors and cables.
We design and manufacture a substantial portion of the heads,
media and substrates required for the hard drives we
manufacture. We purchase a portion of these components from
third party suppliers.
We acquire all of the remaining components for our products from
third party suppliers. We generally retain multiple suppliers
for each of our component requirements but in some instances use
sole sources for business reasons.
We sole-source some components, such as custom integrated
circuit devices for certain products from suppliers like Marvell
Technology, STMicroelectronics and Texas Instruments. Because of
their custom nature, these products require significant
design-in periods and long lead times. There has been a trend in
integrated circuit design toward increased integration of
various separate circuits and we expect this trend to continue
in custom integrated circuits for hard drives.
For an additional discussion of risks related to our component
supplies, see Item 1A of this Annual Report on
Form 10-K.
Materials and Supplies The following products are the major components currently used in the manufacture of our hard drives:
Table of Contents
We also use several other components in our hard drives such as seals, filters, plastic molded parts, capacitors, resistors, connectors and cables. We design and manufacture a substantial portion of the heads, media and substrates required for the hard drives we manufacture. We purchase a portion of these components from third party suppliers. We acquire all of the remaining components for our products from third party suppliers. We generally retain multiple suppliers for each of our component requirements but in some instances use sole sources for business reasons. We sole-source some components, such as custom integrated circuit devices for certain products from suppliers like Marvell Technology, STMicroelectronics and Texas Instruments. Because of their custom nature, these products require significant design-in periods and long lead times. There has been a trend in integrated circuit design toward increased integration of various separate circuits and we expect this trend to continue in custom integrated circuits for hard drives. For an additional discussion of risks related to our component supplies, see Item 1A of this Annual Report on Form 10-K. This excerpt taken from the WDC 10-K filed Aug 28, 2007. Materials
and Supplies
The following products are the major components currently used
in the manufacture of our hard drives:
We also use several other components in our hard drives such as
seals, filters, plastic molded parts, capacitors, resistors,
connectors, and cables.
We design and manufacture a substantial portion of the heads
required for the hard drives we manufacture. We purchase a
portion of these components from third party suppliers.
Following our planned acquisition of Komag, we intend to follow
a similar operational strategy of internally supplying the
majority of our media and substrate requirements and purchasing
the remainder from independent media suppliers.
We acquire all of the remaining components for our products from
third party suppliers. We generally retain multiple suppliers
for each of our component requirements but in some instances use
sole sources for business reasons.
Table of Contents
We sole-source some components, such as custom integrated
circuit devices for certain products from suppliers like Marvell
Technology, STMicroelectronics and Texas Instruments. Because of
their custom nature, these products require significant
design-in periods and long lead times. There has been a trend in
integrated circuit design toward increased integration of
various separate circuits. We expect this trend to continue in
custom integrated circuits for hard drives.
For an additional discussion of risks related to our component
supplies, see Item 1A of this Annual Report on
Form 10-K.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Materials
and Supplies
The principal components currently used in the manufacture of
our hard drives are magnetic heads and related HGAs, HSAs,
media, controllers, spindle motors and mechanical parts used in
the head disk assembly. We use both custom and standard
semiconductor components such as logic, memory and
microprocessor devices obtained from other manufacturers, as
well as a wide variety of other parts, including printed circuit
boards, connectors, cables, and other interconnect technology.
We also design and manufacture a substantial portion of the
heads required for the hard drives we manufacture. We purchase a
portion of these components from third party suppliers.
We acquire all of the remaining components for our products from
third party suppliers. We generally retain multiple suppliers
for each of our component requirements but in some instances use
sole sources for business reasons. For example, during 2006, we
purchased media from several outside vendors including Fuji
Electric, Hoya Corp., Komag Inc. and Showa Denko KK. We have
volume purchase agreements with Komag Inc. and Showa Denko KK
which obligate us to purchase from each supplier, and obligates
each supplier to supply to us, certain specified media volumes
in accordance with the terms in the agreements.
We sole-source some components, such as custom integrated
circuit devices for certain products from STMicroelectronics and
Marvell Semiconductor, Inc. Because of their custom nature,
these products require significant design-in periods and long
lead times. There has been a trend in integrated circuit design
toward increased integration of various separate circuits. We
expect this trend to continue in custom integrated circuits for
hard drives.
For an additional discussion of risks related to our component
supplies, see Item 1A of this Annual Report on
Form 10-K.
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