A few days ago, affected by factors such as global chip shortages, Toshiba’s data center-oriented mechanical hard drives (HDDs) have officially increased in price. Compared with the end of 2020, the average increase is about 5%.

The industry believes that price increases are probably just the beginning. With the substantial increase in the prices of raw materials related to HDD manufacturing, further opportunities for mining demand, and the increasingly serious epidemic in Southeast Asia, the future price increase trend of HDD hard disks is almost certain.

Nihon Keizai Shimbun reported that the price of raw materials has risen sharply recently. Among them, the precious metal ruthenium used in HDD hard disks currently has a spot price of US$798 per troy ounce, compared to the situation of less than US$300 at the end of 2020. The growth rate is nearly 3 times, which is also the new high price since 2007.

In addition, the price of metal iridium used for hydrogen generation and other purposes has also soared more than twice. The main reason for the large-scale price increase of HDD hard disk raw materials is due to the pressure of digitalization and carbon reduction. In addition, due to the rarity of precious metals, speculative funds have increased, causing the current price to double.

At the same time, the continued spread of the epidemic in Southeast Asia has affected the normal production of major hard drive manufacturers. Countries including Thailand and Malaysia are important producers of HDD hard drives.

According to data, the hard drives of Seagate and Western Digital are mainly produced by the New Campbell Group's Tai Campbell and Quanta's Guangming Broadcasting Corporation. The two companies have stepped up their production plans in Thailand since last year. As the local epidemic becomes more serious and the risk of HDD supply increases, price changes may be difficult to avoid.

As a product of the era that was once considered to be gradually marginalized, HDD hard drives are showing new business opportunities under the blessing of the above-mentioned great factors. It is still worth watching whether HDD hard disks will continue to extend their lifespan in the future.