The Inquirer-Home

Chinese firm wants to buy Seagate

Raises US National Security concerns
Tue Aug 28 2007, 09:22
THE CEO of Seagate Technology, William D. Watkins, has revealed that a mainland Chinese company has expressed interest in acquiring the US disk drive manufacturer, according to the New York Times.

The prospect has raised the potential of US National Security concerns. Watkins said in a recent interview, "The US government is freaking out."

Security concerns range from China gaining access to US developed high technology in hardware, process and software domains, including encryption incorporated in some disk storage subsystems, to the potential for China to place backdoors in storage subsystems sold overseas in order to acquire possibly sensitive information.

Seagate, of Scotts Valley, California, is one of only two remaining US disk drive manufacturers. The other is Western Digital, based in Lake Forest, California.

Watkins didn't name the Chinese company involved, but there is speculation that it's Lenovo, which bought IBM's PC business in 2004. µ

New York Times


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