Chinese Company Interested in Buying Seagate

An unnamed Chinese technology company has shown interest in acquiring disk drive maker Seagate Technology, which owns about 30% of the world market share in the sector. The possibility of such a transaction raises concerns among U.S. officials about potential national security risks regarding the transferral of such industry-leading high technology to China. Seagate CEO William Watkins noted that Seagate was not for sale, but that if a high enough premium were offered to shareholders it would be difficult to stop. Government officials emphasized that while disk drives do not fall under a list of export-controlled technologies, moves to purchase a U.S. disk drive company would require a security review by federal officials.

News source: eWeek

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It's not about skill it's about cost, labor is cheaper in China, simple as that. Why pay a guy 10+ bucks an hour when you can get a guy to do it for 50 cent.

*sigh*.... why is everything made in China... quality is lack luster...

I am looking at the stuff on my desk... mouse, keyboard, speakers, phone, pen holder, stapler, CDR's, DVD-Rs, monitors, all made in China... wtf

paulhaskew said,
*sigh*.... why is everything made in China... quality is lack luster...

I am looking at the stuff on my desk... mouse, keyboard, speakers, phone, pen holder, stapler, CDR's, DVD-Rs, monitors, all made in China... wtf

China even makes American flags.

Its just pathetic. I've seen napkins "made in china". As if we don't have the skill here to make them ourselves.

Seagate drives usually come with a 5 year limited warranty, so if it fails before 5 years, you can simply get it replaced by them... right?

Purchasing the company wouldnt alter where the drives are made anyway. China is just looking to invest the massive inflows of foreign currency/Bonds it controls in strategic assets. Hdds are a largely factory automated and mass produced devices, China would loose comparative advantage and probably quality in trying to make them with labour over capital equipment, not to mention relocating (if needed) just to give a tiny amount of people employment.

It would be the R&D and industry influence of one of the major storage manuafactuers that would be of relevence to China.

I've lost enough faith in hard drives already, especially Seagate. Their OEM drives don't seem to last much longer than a year.

They are all made in Asia anyways. Hell even Seagate the company is registered in Cayman Islands. So technically it's not even an American Firm.

What's the difference? Almost every Seagate drive I've seen lately has been made in China anyway. A couple weeks ago, I bought 3x 320gb drives that were made in China. At first, they seemed to be working good, but then, I started hearing a chirping noise. I narrowed it down to one drive and sent it back for an RMA. I got the new drive, and it did the same thing. Then, the other two drives that I originally bought started doing the same thing! I looked up some reviews, and it seems it is a common issue.

So, I'm put off with Seagate right now...four chirping hard drives is a no-go for me. I sent them all back on Friday, and I will be buying some of the WD Enterprise line drives that also have a five year warranty. It'll cost me $15 more per drive, but at least they won't COA (chirp on arrival).

Bad enough Seagate acquired Maxtor. But look at it this way seagate already shifted there manufacturing to china just like how maxtor followed them later.

If I recall correctly, according to an import product quality test done by the Japanese government earlier this month, China has the highest percentage of products passing QC at 99.4%, half a percent higher than those coming in from the U.S., and even more than the rest. The sample size was something like ~44,000 products from China and ~22,000 from the states. Those Chinese products which didn't pass the test were of varieties and U.S. items which failed were mostly food, meat products in particular. Tests are based on Japanese standard, of course. Can't remember the rest of the story...Off topic.

Anyway, don't think this is going to happen. There's no point.

Actually that is true. I read the same kind of article saying that Chinese exports are the least likely to have problem percentage-wise than any other countries'. The only reason why we hear a lot about bad Chinese products is because they make most of our products. So even a smaller percentage translated into more cases. It would probably be worse if stuff were imported from other countries.

Come on let's face it, one of the the basic rules of economics is that market balances itself out. If Chinese product's quality/price ratio is so bad they would long have moved manufacturing somewhere else already.

Yeah, I love that extra .5% (probably within MoE) I get by handing even more technology over to China. Perhaps the extra lead they put into things adds that extra half percent. Hmmm...