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RECENT news about hard disk drive (HDD) maker JCY International Bhd losing a major customer has put investors on the alert. There are concerns that a scaling back on buying by HDD producers as they embark on a rationalisation of their supply chain may hurt the market. Apart from Johor-based JCY, the two other listed HDD players are Dufu Technology Corp Bhd and Notion VTec Bhd. Industry experts are of the view that JCY’s announcement does not reflect the situation in the entire HDD market, citing competition and pricing as possible reasons for the JCY customer’s decision. No reason was provided by JCY in its Bursa Malaysia filing on Jan 14 for its customer’s gradual pullout and the company did not respond to The Edge’s requests for comment.

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