Western Digital 1995 Annual Report Download - page 9

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T   - 
—those with storage capacities of two giga-
bytes and higher—represents a tremendous growth
opportunity for Western Digital Corporation.
Industry shipments of this class of drive totaled two
million units in 1994, and industry estimates are that
seven million units will be shipped in 1995. This
growth is expected to continue at an annual com-
pound growth rate of 22 percent over the next three
years. With the explosion of the LAN server market
and moderate increases in workstation and multi-user
market segments, demand in this industry will con-
tinue to be strong.
Western Digital entered this business with the
creation of the High Performance Storage Group in November 1994, which will produce its first
drives before the end of the current fiscal year. The Group, headquartered in Rochester,
Minnesota, has made significant strides to meet these goals. Our staff of experienced drive man-
agers and engineers has constructed a research and development center, pilot production line and
Functional Integrity Testing Laboratory (FIT Lab), and is well along in the development of our
first product. Prototypes currently being tested have exceeded the requirements set for them.
We are preparing a production facility in Singapore, near many of Western Digital’s trusted,
long-term suppliers. In that plant, we plan to leverage the manufacturing processes, technology
and superior production yields in which Western Digital is a recognized leader. As we commence
production later this fiscal year, we are certain that customer satisfaction, reliability, manufactur-
ing yields and cost will meet Western Digital’s high standards.
Townsend H . Porter, Jr. Paul A. Penney
   H igh Performance Storage Products  .
High Performance Storage Products
Townsend H. Porter, Jr.,
Vice President, Research and Development, High Performance Storage Group
Worldwide High
Capacity (2 GB+ )
3.5-Inch Hard Drive
Market Forecast
(units in millions)
Paul A. Penney,
Vice President, Operations, H igh Performance Storage Group
Source: IDC, August 1995