Seagate completes acquisition of Samsung's hard drive division

By on December 20, 2011, 1:30 PM

In April, Seagate agreed to purchase Samsung's hard drive division in a transaction valued at $1.4 billion. Technically speaking, the acquisition is complete and Seagate has launched a web page dedicated to the purchase for customers. Logistically speaking though, the companies have their work cut out for them as they restructure and combine their products, resources and talent.

Currently, Seagate is providing mechanical hard drives for Samsung PCs while Samsung is returning the favor with flash chips used in Seagate's enterprise SSDs and consumer hybrids (ie. Momentus XT).

As a result of the deal, both companies have extended and improved an existing patent agreement allowing them to dip into each other's R&D efforts. Also, Seagate will be gaining significant inroads to customers in China, South East Asia, Brazil, Germany and Russia. In addition to patents and distribution, Samsung will also be appointing a nominee who will join Seagate's executive board of directors.

Samsung's current HDD product line-up will also be Seagate's property. This includes Spinpoint M8, MP4 and S3 portable products. While it is uncertain if Seagate will choose to retain any products from Samsung's meager production portfolio, the Samsung brand name will live on for the next 12 months as per the agreement.

This latest acquisition seems to be yet another nail in the coffin for mechanical hard drive manufacturers as they continue to reduce down into just a handful of companies. Incidentally, Western Digital is still working on its own acquisition of Hitachi Global Storage Technologies. If the merger completes next year like WD believes, there will be only three major HDD manufacturers left in the world: Western Digital, Seagate and Toshiba.




User Comments: 18

Got something to say? Post a comment
mishmosh said:

I don't know how this acquisition will improve the taint to Seagate's reputation from all the drive failures in recent years. Samsung doesn't have much of a rep at this point.

lchu12 lchu12 said:

Soon everything will be in binary.

Either:

Intel or AMD

WD or Seagate

Windows or Mac OSX

...

oh wait we're already here...

princeton princeton said:

lchu12 said:

Soon everything will be in binary.

Either:

Intel or AMD

WD or Seagate

Windows or Mac OSX

...

oh wait we're already here...

I disagree. New system builders have no reason to buy AMD CPUs anymore. It's AMD vs Nvidia for GPUs.

bandit8623 said:

samsung drives overall have been awesome for me.

Guest said:

After 12months how will we know what where buying if they take the samsung name away

Kibaruk Kibaruk, TechSpot Paladin, said:

Princeton said:

lchu12 said:

Soon everything will be in binary.

Either:

Intel or AMD

WD or Seagate

Windows or Mac OSX

...

oh wait we're already here...

I disagree. New system builders have no reason to buy AMD CPUs anymore. It's AMD vs Nvidia for GPUs.

Amd hater will hate... as always. Fanboy!

Eddo22 said:

Princeton said:

lchu12 said:

Soon everything will be in binary.

Either:

Intel or AMD

WD or Seagate

Windows or Mac OSX

...

oh wait we're already here...

I disagree. New system builders have no reason to buy AMD CPUs anymore. It's AMD vs Nvidia for GPUs.

I disagree with you. Amd's quadcores are hard to pass up at their price range and Intel has no good answer to AMD's APU's.

Staff
Rick Rick, TechSpot Staff, said:

mishmosh said:

I don't know how this acquisition will improve the taint to Seagate's reputation from all the drive failures in recent years. Samsung doesn't have much of a rep at this point.

Seagate claims their failure rate is less than 1%, but I know first hand that numbers do lie: [link]

I know there has been quite a bit of anecdotal evidence supporting your thoughts though, especially with Barracudas. It is hard to know for sure though since companies aren't very transparent when it comes to RMA numbers.

Burty117 Burty117, TechSpot Chancellor, said:

Eddo22 said:

Princeton said:

lchu12 said:

Soon everything will be in binary.

Either:

Intel or AMD

WD or Seagate

Windows or Mac OSX

...

oh wait we're already here...

I disagree. New system builders have no reason to buy AMD CPUs anymore. It's AMD vs Nvidia for GPUs.

I disagree with you. Amd's quadcores are hard to pass up at their price range and Intel has no good answer to AMD's APU's.

Not really, an i5 is pretty cheap to come by, if you were to buy a brand new rig today you'd have to be into a particular field of work for AMD's chips to be viable, for general every day stuff and gaming and encoding etc... Intel does better and does it using less power for cheaper?

Either way, Ichu12 was listing CPU's not APU's? and Princeton was listing GPU's?

Guest said:

Well there goes another company I won't be buying from. I've had good luck with my Samsung drives. Sad day indeed. I guess its back to WD again.

Guest said:

I have always bought Samsung drives because they were made in Korea. I would prefer made in Japan over Korea but I don't prefer made China, Malaysia, Thailand etc. like WD, Seagate and Hitachi.

I bought a small external Samsung 500gb 'made in Korea' 6 months ago. I saw the "same" drive in different blister packaging at the same store labelled Samsung, and on the back 'made in China'.

Guest said:

Seagate claims their failure rate is less than 1% --- that's why starting next year, seagate hdd will mostly have 1 year warranty

Leeky Leeky said:

If they swallow up Samsung that'll be the end of me buying their disks. I specifically avoid Seagate hard disks at all costs and I have to say I'm not too impressed they could make my preferred brand disappear from store shelves.

Guess I best stock up on what's left of F3/F4 disks if the prices come down in time.

If not I'll be moving over to Hitachi or Western Digital.

Capaill said:

+1 Leeky.

I use Samsung for all my internal drives and some external usb drives and have never had a problem with them. I'm even planning buying more next month.

I used 2 Hitachi HDDs years ago and they worked fine so I'll probably fall back on them when Samsung drives disappear.

I don't like WD purely because they refused to release drivers for my external usb2 drives when Vista 64-bit came out, turning all my usb drives into slow USB1-speed drives. That was mean.

Guest said:

The worst thing that happened to the mechanical HDD industry was the acquisitions of Samsung and Hitachi. While less popular and less mainstream brands among PC builders, the veteran PC builders have actually been using these 2 brands over Seagatea and WD. WD black series drives are way too loud for a quiet system, while Seagate hasn't made good HDDs since 7200.10 series. Samsung and Hitachi actually offered reliable and QUIET 7200 rpm drives. Let's hope technology improves and that we can soon buy a 4TB drive on 2 platters so at least they can address the noise prolems.

madboyv1, TechSpot Paladin, said:

This makes me very sad. I have the better half of a dozen Samsung drives. They are reliably fast (often faster than similar drives) and run very cool, all at a competitive price compared to WD and Failgate.

I guess... Leeky and I will be fighting over the remaining Samsung drives, even with the drive shortage. XD

Eddo22 said:

burty117 said:

Eddo22 said:

Princeton said:

lchu12 said:

Soon everything will be in binary.

Either:

Intel or AMD

WD or Seagate

Windows or Mac OSX

...

oh wait we're already here...

I disagree. New system builders have no reason to buy AMD CPUs anymore. It's AMD vs Nvidia for GPUs.

I disagree with you. Amd's quadcores are hard to pass up at their price range and Intel has no good answer to AMD's APU's.

Not really, an i5 is pretty cheap to come by, if you were to buy a brand new rig today you'd have to be into a particular field of work for AMD's chips to be viable, for general every day stuff and gaming and encoding etc... Intel does better and does it using less power for cheaper?

Either way, Ichu12 was listing CPU's not APU's? and Princeton was listing GPU's?

$50 more isn't pretty cheap imo. Companies have people fooled into thinking they need the fastest of the fastest for their pc. Yes some people do, but most don't. An AMD Phenom 2 965 @3.4ghz is plenty for most users.

APU - CPU... same family.

Kibaruk Kibaruk, TechSpot Paladin, said:

Even better, the APUs dont force you to buy a video card because of your sucky GMA chipset for like 95% of computer users who only want to watch videos on HD and play casual games.

I would say buying an APU+Cheap Mobo is not "slightly" cheaper than buying Intel CPU+Intel Mobo+Low gama videocard, it's a LOT cheaper.

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