History (1993): Seagate Expands Recording Head Operations With $65 Million Wafer Fab in Northern Ireland

Seagate Technology (Scotts Valley, CA) will increase its capacity for producing thin-film recording heads with the construction of a $65 million wafer fabrication operation in Londonderry, Northern Ireland.

When completed, by the end of 1993, the new plant will provide enough of the wafers from which HDD recording heads produced to make in excess of 100 million thin-film heads per year. This production volume will double Seagate’s existing capacity.

The Derry plant will complement existing wafer fabrication operations in Minnesota.

“The new Northern Ireland wafer fab will provide Seagate with more than twice the capacity of the largest independent recording head manufacturer – giving Seagate a clear edge in building share for the OEM recording head market, “said Brendan Hegarty, CTO, component operations.

The majority of wafer produced at Derry will be machined into HDD recording heads at Seagate’s Penang, Malaysia manufacturing plant.

The Derry fab will be outfitted with manufacturing equipment capable of producing both inductive and MR head wafers. Wafers will also be made to produce the MR tape heads used in the new audio Digital Compact Cassette systems from Philips.

The new plant, to be located 90 miles northwest of Belfast, will cover 100,000 square-feet, of which 30,000 square feet will be dedicated to clean room operations.

Hegarty said Seagate chose the Derry location because of the overall positive economic situation in Northern Ireland, and the conviction that it will be an excellent environment in which to operate. In addition, operating and investment costs were lower than in other parts of the world. Seagate also cited the favorable costs of the region and the infrastructure of experienced technical professionals as reasons for choosing the new site.

Seagate will break ground at the Derry site in 1Q93.

Construction is anticipated to be completed before the end of the year, with production output expected in early 1994.

Initial employment levels will be around 250, increasing to approximately 500 when the plant is at full capacity.

This article is an abstract of news published on the former paper version of Computer Data Storage Newsletter on issue ≠61, published on February 1993.