Intel sales hit by Thai hard drive drought

SHARES in US chip maker Intel fell more than four per cent in trading yesterday as it warned that supply shortages of computer hard drives caused by floods in Thailand would hurt its revenue in the current quarter.

More than 600 people have died in the flooding, which has caused billions of dollars in damages since July and disrupted international supply chains in the PC and automobile industries.

“In the last two weeks, as the supply became more apparent, we saw a substantial change in our order rate. Most of our customers are concerned the shortage will continue – especially through the early part of the first quarter,” said Intel’s senior vice president Tom Kilroy on a conference call.

Intel said customers were reducing their stock of chips in anticipation of the hard drive shortage continuing early next year.