Since its foundation in 1970, Western Digital Corporation (WDC) has established itself as a key player in the data storage industry. Based in San Jose, California, the company has played a crucial role in the development of hard drives, flash storage devices, and solutions for data centers. Throughout its history, Western Digital has faced technological changes, economic fluctuations, and corporate challenges that have shaped its trajectory.
The early years: from semiconductors to storage controllers
Western Digital was founded on April 23, 1970 under the name General Digital Corporation by Alvin B. Phillips, a former Motorola employee. The company started as a manufacturer of MOS test equipment but soon shifted its focus to semiconductor production. In 1971, it changed its name to Western Digital and in the early 1970s, it focused on manufacturing chips for calculators. By 1975, the company was the largest independent manufacturer of these components.
Western Digital’s initial success was disrupted by the 1970s oil crisis and the bankruptcy of its main customer, Bowmar Instrument, which led the company to declare bankruptcy in 1976. However, under the leadership of Chuck Missler, who became president and CEO in 1977, Western Digital recovered and began to specialize in the production of hard drive controllers, establishing itself as a key provider in this segment.
Consolidation in the storage market
Western Digital’s big break came in 1983 when it won a contract with IBM to supply hard drive controllers for the PC/AT model. This collaboration marked the beginning of the adoption of the ATA interface, which Western Digital helped develop and became a standard in the hard drive industry for decades.
During the 1980s, the company diversified its operations through the acquisition of other companies. Among them, Paradise Systems, which manufactured graphics cards, and Faraday Electronics, specializing in chipsets. However, storage products remained the core of the business. In 1988, Western Digital acquired the hard drive production assets of Tandon, which allowed it to launch the Centaur hard drive line, its first step into manufacturing complete hard drives.
The expansion of the 90s and the rise of the Caviar series
In the 1990s, Western Digital launched its iconic Caviar series of hard drives, a new generation of hard drives with advanced technology, including integrated servos and automated diagnostic systems. This series was highly successful in both the consumer and corporate markets, enabling the company to regain competitiveness against rivals like Seagate and Maxtor.
However, by the mid-90s, competition intensified and Western Digital’s technology began to lag behind compared to the innovations of companies like Quantum. Nevertheless, the company continued to innovate and in 1998, formed an alliance with IBM to use their giant magnetoresistive (GMR) head technology in their hard drives. This led to the Expert line in 1999, which helped restore the company’s reputation.
21st century: new technologies and key acquisitions
With the turn of the millennium, Western Digital adapted to new trends in data storage. In 2001, the company became the first manufacturer to release ATA hard drives with an 8 MiB buffer, a significant advancement that improved the performance of these devices in critical applications. In 2003, Western Digital acquired the assets of Read-Rite Corporation, enabling it to advance in the development of magnetic read-write heads.
One of Western Digital’s biggest successes during this time was the launch of the high-speed WD Raptor hard drive line in 2003, designed for servers and workstations. These hard drives, with speeds of 10,000 RPM, offered superior performance compared to other products on the market. Later, in 2006, the company launched its My Book external hard drive line, which became a hit among home users.
The acquisition of SanDisk and the era of flash storage
One of the most important milestones in Western Digital’s recent history was the acquisition of SanDisk in 2016 for $19 billion. This acquisition allowed Western Digital to expand its presence in the flash storage market and establish itself as one of the largest SSD manufacturers. SanDisk, known for its memory cards and flash storage solutions, was instrumental in Western Digital’s growth in an era where solid-state storage began to surpass traditional hard drive storage.
However, the integration of SanDisk also brought challenges. In 2023, Western Digital announced plans to spin off its flash storage division, effectively reversing the merger with SanDisk, with the separation planned to be completed in 2024.
Continued innovation and recent challenges
Despite its successes, Western Digital has faced several issues in recent years. In 2023, the company suffered a cyberattack that compromised 10 TB of data and forced the company to suspend some of its cloud services. Additionally, talks of a merger with Kioxia, a Japanese memory chip company, were canceled in October 2023 following opposition from shareholders.
In terms of innovation, Western Digital continues to release innovative products. In May 2024, the company announced the launch of the first 6 TB external hard drive in a 2.5-inch format, reaffirming its position as a leader in the storage market.
Conclusion
Western Digital has come a long way from its humble beginnings as a semiconductor manufacturer. Over more than five decades, the company has demonstrated its ability to adapt to a constantly changing technological environment. With a consistent focus on innovation, and despite the challenges it faces, Western Digital remains a cornerstone in the data storage industry, maintaining its position as a leader in hard drives, flash solutions, and storage technology for data centers.