−Removed: Western Digital is a leading developer, manufacturer and provider of data storage devices and solutions based on both hard disk drive and NAND flash technologies.
−Removed: With a differentiated innovation engine driving advancements in storage and semiconductor technologies, our broad and ever-expanding portfolio delivers powerful hard disk drives (“HDD”) and flash-based products (“Flash”) storage solutions for everyone from students, gamers and home offices, to the largest enterprises and public clouds to capture, preserve, access and transform an ever-increasing diversity of data.
−Removed: Our broad portfolio of technology and products addresses multiple end markets:
−Removed: “Cloud,” “Client” and “Consumer.”
−Removed: Cloud is comprised primarily of products for public or private cloud environments and end customers.
−Removed: Through the Client end market, we provide our original equipment manufacturer (“OEM”) and channel customers a broad array of high-performance hard drive and flash solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces.
−Removed: The Consumer end market is highlighted by our broad range of retail and other end-user products, which capitalize on the strength of our product brand recognition and vast points of presence around the world.
−Removed: On October 30, 2023, we announced that our Board of Directors had completed its strategic review of our business and, after evaluating a comprehensive range of alternatives, authorized us to pursue a plan to separate our HDD and Flash business units to create two independent, public companies.
−Removed: We believe the separation will better position each business unit to execute innovative technology and product development, capitalize on unique growth opportunities, extend respective leadership positions and operate more efficiently with distinct capital structures.
−Removed: The completion of the planned separation is subject to certain conditions, including final approval by our Board of Directors.
−Removed: Significant effort is underway and extensive progress has been made with respect to the separation as we continue to drive towards completing the work required to separate the businesses by the end of calendar year 2024.
−Removed: Founded in 1970 in Santa Ana, California, Western Digital is now a Standard & Poor’s 500 (“S&P 500”) company headquartered in San Jose, California.
−Removed: We have valuable patent portfolios containing approximately 13,000 active patents , covering groundbreaking memory technologies and beyond.
−Removed: We have extensive customer, partner and channel relationships across a number of end markets and geography and have a rich heritage of innovation and operational excellence, a wide range of intellectual property (“IP”) assets, broad research and development (“R&D”) capabilities and large-scale, efficient manufacturing supply chains.
−Removed: The strong growth in the amount, value and use of data continues, creating a global need for larger, faster and more capable storage solutions.
−Removed: We are a customer-focused organization that has developed deep relationships with industry leaders to continue to deliver innovative solutions to help users capture, store and transform data across a boundless range of applications.
−Removed: With much of the world’s data stored on Western Digital products, our innovation powers the global technology ecosystem from consumer devices to the edge, to the heart of the cloud.
+Added: Western Digital was founded in 1970 and is a Standard & Poor’s 500 (“S&P 500”) company headquartered in San Jose, California.
+Added: We are a leading developer, manufacturer, and provider of data storage devices and solutions based on hard disk drive (“HDD”) technology.
+Added: HDDs are critical components in the worldwide data infrastructure market, powering the digital economy.
+Added: HDDs provide reliable, cost-effective, high-capacity storage needs for a wide range of applications, ranging from cloud data centers, enterprise storage systems, edge computing, and video surveillance to client and consumer devices.
+Added: On February 21, 2025 (the “Separation Date”), we completed the separation of our HDD and Flash business units (the “Separation”) to create two independent public companies, with Western Digital focusing on our existing HDD business and Sandisk Corporation (“Sandisk”), formerly a wholly-owned subsidiary of the Company, holding the Flash business.
+Added: We believe the Separation better positions each business unit to execute innovative technology and product development, capitalize on unique growth opportunities, extend respective leadership positions, operate more efficiently with distinct capital structures, and pursue capital allocation strategies that maximize long-term shareholder value.
+Added: As global data creation continues to accelerate, particularly in the age of AI, and as the need to store and retain data also grows, we believe HDDs will continue to remain the preferred technology for storing large volumes of data as the most economical solution to the large cloud data centers for their mass storage needs.
+Added: We believe Western Digital is well positioned as a leading supplier in the industry given the depth of our industry knowledge and the breadth of our product portfolio.
+Added: We are a customer-focused organization that has developed deep relationships with industry leaders to deliver innovative solutions to help users capture, store and transform data across a boundless range of applications.
+Added: With much of the world’s data stored on Western Digital products, our innovation powers the global technology ecosystem — anchored in the cloud, and extending from consumer devices to the edge — enabling the data-driven future, including AI and emerging applications.
+Added: Our broad portfolio of technology and products addresses our customers’ storage needs through multiple end markets:
+Added: “Cloud,” “Client” and “Consumer” and is comprised of the Western Digital® and WD® brands.
+Added: Cloud represents a large and growing end market comprised primarily of products for public or private cloud environments and enterprise customers.
We enable cloud, Internet and social media infrastructure players to build more powerful, cost-effective and efficient data centers.
−Removed: We help OEMs address storage opportunities and solutions to capture and transform data in a myriad of devices and edge technologies.
−Removed: We have also built strong consumer brands with tools to manage vast libraries of personal content and to push the limits of what is possible for storage.
−Removed: At Western Digital, we continue to transform ourselves to address the growth in data by providing what we believe to be the broadest range of storage technologies in the industry with a comprehensive product portfolio and global reach.
+Added: We provide the Cloud end market with an array of high-capacity enterprise HDDs and platforms.
+Added: Our capacity enterprise HDDs address growing storage demands with high reliability, easy scalability, and lower time to value for our customers — all while delivering a low total cost of ownership for cloud data center and smart video system markets.
+Added: These drives are primarily for use in data storage systems, in tiered storage models and where data must be stored reliably for years.
+Added: We also provide higher value data storage platforms to the market.
+Added: Through the Client end market, we provide our original equipment manufacturer (“OEM”) and channel customers a broad array of high-performance HDD solutions across desktop and notebooks.
+Added: Our products are designed for use in devices requiring high performance, reliability and capacity with various attributes such as low cost per gigabyte, quiet acoustics, and low power consumption.
+Added: We have also built strong consumer brand recognition with tools to manage vast libraries of personal content and to push the limits of what is possible for storage.
+Added: We serve the Consumer end market with a portfolio of HDD external storage products and our vast presence around the world through our retail and channel routes to market.
We operate in the data storage industry.
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From the intelligent edge to the cloud, data storage is a fundamental component underpinning the global technology architecture.
−Removed: Our strengths in innovation and cost leadership, diversified product portfolio and broad routes to market provide a foundation upon which we are solidifying our position as an essential building block of the digital economy.
−Removed: We believe there is tremendous market opportunity flowing from the rapid global adoption of the technology architecture built with cloud infrastructure tied to intelligent endpoints all connected by high-performance networks.
−Removed: The increase in computing complexity and advancements in artificial intelligence (“AI”), along with growth in cloud computing applications, connected mobile devices and Internet-connected products and edge devices is driving unabated growth in the volume of digital content to be stored and used.
−Removed: This growth has led to the creation of new form factors for data storage.
−Removed: The storage industry is increasingly utilizing tiered architectures with solid state drives (“SSD”), HDD and other non-volatile memory-based storage to address an expanding set of uses and applications.
−Removed: We believe our expertise and innovation across both HDD and Flash technologies enable us to bring powerful solutions to a broad range of applications.
−Removed: We continuously monitor the full array of storage technologies, including reviewing these technologies with our customers, to ensure we are appropriately resourced to meet our customers’ storage needs.
−Removed: Hard Disk Drives.
−Removed: HDD products provide non-volatile data storage by recording magnetic information on a rotating disk.
+Added: Our strengths in innovation, areal density and cost leadership provide a foundation upon which we are solidifying our position as an essential building block of the digital economy.
+Added: We believe there is tremendous market opportunity created by the rapid global adoption of technology built with cloud infrastructure, connected intelligent devices, and high-performance networks.
+Added: The increase in computing complexity and advancements in AI, along with growth in cloud computing applications, connected mobile devices and Internet-connected products and edge devices is driving rapid growth in the volume of digital content to be stored and used.
+Added: While this growth has led to the creation of several form factors for data storage and an increasing use of a tiered architecture approach, HDDs occupy a unique place in the market by providing an economical means to create, store and utilize an increasing amount of data in the age of AI.
+Added: We believe HDDs provide a sustainable total cost of ownership (TCO) advantage to our cloud customers to meet their storage needs.
+Added: Research and Technology
+Added: The strong growth in the amount, value and use of data continues to create a global need for larger, faster and more capable storage solutions.
+Added: We have extensive customer, partner and channel relationships across our end markets and geographies and a rich heritage of innovation and operational excellence.
+Added: We have a wide range of intellectual property (“IP”) assets, including patent portfolios containing approximately 4,500 active patents , covering groundbreaking data storage technologies, magnetic recording and other technology building blocks.
+Added: We have broad research and development (“R&D”) capabilities and devote substantial resources to the development of new products and the improvement of existing products.
+Added: We focus our engineering efforts on optimizing our product design and manufacturing processes to bring our products to market in a cost-effective and timely manner.
+Added: We continue to transform ourselves to address the growth in data by providing what we believe to be the broadest range of storage technologies in the industry with a comprehensive product portfolio and global reach.
+Added: For a discussion of associated risks, see Part I, Item 1A, Risk Factors , of this Annual Report on Form 10-K.
+Added: HDD products provide non-volatile data storage by recording magnetic information on rotating disks.
We develop and manufacture substantially all of the recording heads and magnetic media used in our HDD products.
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Our improvements in HDD capacity, which lower product costs over time, have been enabled largely through advancements in magnetic recording head and media technologies.
−Removed: Our multi-year product roadmap for high-capacity HDD, which combines ePMR, OptiNAND, UltraSMR and triple stage actuators to deliver a cutting-edge portfolio of drives, in commercial volumes, at a wide variety of capacity points, puts Western Digital in a strong position to capitalize on the opportunities presented by the large and growing storage markets.
+Added: Our multi-year product roadmap for high-capacity HDDs, which include ePMR, OptiNAND, UltraSMR and triple stage actuators to deliver a cutting-edge portfolio of drives, in commercial volumes, at a wide variety of capacity points, puts Western Digital in a strong position to capitalize on the opportunities presented by the large and growing storage markets.
We invest considerable resources in R&D, manufacturing infrastructure and capital equipment for recording head and media technology, as well as other aspects of the magnetic recording system such as HDD mechanics, controller and firmware technology, in order to secure our competitive position and cost structure.
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This platform strategy also enables our customers to leverage their qualification efforts onto successive product models.
−Removed: Flash Technologies .
−Removed: Flash-based products provide non-volatile data storage based on flash technology.
−Removed: We develop and manufacture solid state storage products for a variety of applications including enterprise or cloud, client, automotive, mobile devices and removable memory devices.
−Removed: Over time, we have successfully developed and commercialized successive generations of multi-dimensional flash technology with increased numbers of storage bits per cell in an increasingly smaller form factor, further driving cost reductions.
−Removed: We devote significant R&D resources to the development of highly reliable, high-performance, cost-effective flash-based technology and are continually pursuing developments in next-generation flash-based technology capacities.
−Removed: We are leveraging our expertise, resources and strategic investments in non-volatile memories to explore a wide spectrum of persistent memory and storage class memory technologies.
−Removed: We have also initiated, defined and developed standards to meet new market needs and to promote wide acceptance of flash storage standards through interoperability and ease of use.
−Removed: Our Data Solutions
−Removed: Our broad portfolio of technology and products addresses multiple end markets of “Cloud,” “Client” and “Consumer” and are comprised of the Western Digital®, SanDisk® and WD® brands.
−Removed: Cloud represents a large and growing end market comprised primarily of products for public or private cloud environments and enterprise customers.
−Removed: We provide the Cloud end market with an array of high-capacity enterprise HDD, high-performance enterprise SSD and platforms.
−Removed: Our capacity enterprise hard disk drives provide high-capacity storage needs and a low total cost of ownership for the growing cloud data center and smart video system markets.
−Removed: These drives are primarily for use in data storage systems, in tiered storage models and where data must be stored reliably for years.
−Removed: Our high-performance enterprise class SSD include high-performance flash-based SSD and software solutions that are optimized for performance applications providing a range of capacity and performance levels primarily for use in enterprise servers and supporting high-volume online transactions, AI-related workloads, data analysis and other enterprise applications.
−Removed: We also provide higher value data storage platforms to the market.
−Removed: Through the Client end market, we provide numerous data solutions that we incorporate into our client’s devices, which consist of HDD and SSD desktop and notebook PCs, gaming consoles and set top boxes, as well as flash-based embedded storage products for mobile phones, tablets, notebook PCs and other portable and wearable devices, automotive applications, Internet of Things and industrial and connected home applications.
−Removed: Our HDD and SSD are designed for use in devices requiring high performance, reliability and capacity with various attributes such as low cost per gigabyte, quiet acoustics, low power consumption and protection against shocks.
−Removed: We serve the Consumer end market with a portfolio of HDD and SSD embedded into external storage products and removable Flash, which include cards, universal serial bus (“USB”) flash drives and wireless drives, through our retail and channel routes to market.
−Removed: Our external HDD storage products in both mobile and desktop form factors provide affordable, high quality, reliable storage for backup and capacity expansion that are designed to keep digital content secure.
−Removed: We offer client portable SSD with a range of capacities and performance characteristics to address a broad spectrum of the client storage market.
−Removed: Our removable cards are designed primarily for use in consumer devices, such as mobile phones, tablets, imaging systems, cameras and smart video systems.
−Removed: Our USB flash drives are used in the computing and consumer markets and are designed for high-performance and reliability.
−Removed: Our wireless drive products allow in-field backup of created content, as well as wireless streaming of high-definition movies, photos, music and documents to tablets, smartphones and PCs.
−Removed: Our industry is highly competitive.
−Removed: We believe we are well-positioned with our leading product portfolio, premium consumer brand, differentiated semiconductor innovation engine and leadership in driving cost efficiency.
−Removed: Nevertheless, we face strong competition from other manufacturers of HDD and Flash in the Cloud, Client and Consumer end markets.
−Removed: In HDD, we compete with Seagate Technology Holdings plc and Toshiba Electronic Devices & Storage Corporation.
−Removed: In Flash, we compete with vertically integrated suppliers such as Kioxia, Micron Technology, Inc., Samsung Electronics Co., Ltd., SK Hynix, Inc., Yangtze Memory Technologies Co., Ltd.
−Removed: and numerous smaller companies that develop and manufacture flash-based products.
+Added: We believe we are well-positioned in our competitive industry with our leading product portfolio, differentiated innovation engine, global manufacturing footprint, and leadership in driving areal density and cost efficiency.
+Added: Nevertheless, we face strong competition from several manufacturers of storage products and storage systems and solutions, whether directly or indirectly.
+Added: Our competitors include HDD competitors such as Seagate Technology Holdings plc, and Toshiba Electronic Devices & Storage Corporation along with NAND flash suppliers that provide and enable alternative storage technologies, as well as storage systems and solutions providers.
Business Strategy
−Removed: Our overall strategy focuses on leadership, innovation and execution to be an industry-leading and broad-based developer, manufacturer and provider of storage devices and solutions that support the infrastructure that has enabled the unabated proliferation of data.
−Removed: Our strategy reflects the following foundational elements that we strive to meet:
−Removed: • Drive Leadership in HDD
−Removed: ▪ Provide reliable capacity growth and improved total cost of ownership
−Removed: ▪ Enhance customers’ ability to generate value from data
−Removed: ▪ Develop new technologies across the storage landscape
−Removed: • Drive Differentiated Leadership in Flash
−Removed: ▪ Capitalize on market transition to solid state drives
−Removed: ▪ Focus on gross margin leadership
−Removed: ▪ Leverage consumer brand strength
−Removed: • Lead in Storage Innovation
−Removed: ▪ Lead in areal density
−Removed: ▪ Invest in leading HDD technologies to enable future drive capacity transition
−Removed: ▪ Drive capital-efficient bit growth in flash
−Removed: ▪ Explore tailored storage solutions to address the evolving workload requirements of generative AI
−Removed: • Deliver Customer Value
−Removed: ▪ Increase long-term engagement and through-cycle agreements with key hyperscalers
−Removed: ▪ Maintain and expand strategic relationships with customers while transitioning into two market-leading companies
−Removed: • Accelerate Operational Excellence
−Removed: ▪ Achieve operational excellence to translate technology into stockholder value
−Removed: ▪ Meet cost reduction targets to improve gross margin
−Removed: ▪ Focus on sustainability and digital innovation of our manufacturing processes
−Removed: Research and Development
−Removed: We devote substantial resources to the development of new products and the improvement of existing products.
−Removed: We focus our engineering efforts on optimizing our product design and manufacturing processes to bring our products to market in a cost-effective and timely manner.
−Removed: For a discussion of associated risks, see Part I, Item 1A, Risk Factors , of this Annual Report on Form 10-K.
+Added: Our vision is to unleash the power and value of data.
+Added: Our mission is to be the market leader in data storage by delivering storage solutions for now and the future.
+Added: By understanding our customers’ needs, together we can help them unlock the value and power of data that we are starting to see come to the fore, especially in this age of AI.
+Added: Our overall strategy focuses on leadership, innovation and execution, with a goal of furthering Western Digital as an industry-leading and broad-based developer, manufacturer and provider of storage devices and solutions that support the infrastructure that has enabled a proliferation of data.
+Added: Our strategy reflects the following foundational elements:
+Added: (1) Enhanced customer focus for driving greater customer advocacy and deeper customer engagement, (2) Product and technology leadership for realizing the best total cost of ownership through disciplined product management, (3) Rigorous financial discipline by having a clear capital allocation strategy, ambitious financial targets and prudent capital investment, (4) Operational excellence for driving best-in-class cost to achieve industry-leading margin profiles with strong execution, (5) Innovation and growth for creating new products and applications and identifying new market opportunities, and (6) High performance teams with the skill sets to meet go-forward business needs.
Patents, Licenses and Proprietary Information
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We strive to maintain manufacturing flexibility, high manufacturing yields, reliable products and high-quality components.
−Removed: The critical elements of our production of both HDD and Flash are high volume and utilization, low-cost assembly and testing, strict adherence to quality metrics and maintaining close relationships with our strategic component suppliers to access best-in-class technology and manufacturing capacity.
+Added: The critical elements of our production are high volume and utilization, low-cost assembly and testing, strict adherence to quality metrics and maintaining close relationships with our strategic component suppliers to access best-in-class technology and manufacturing capacity.
We continually monitor our manufacturing capabilities to respond to the changing requirements of our customers and maintain our competitiveness and position as a data technology leader.
−Removed: HDD and Flash manufacturing are each complex processes involving the production and assembly of precision components with narrow tolerances and rigorous testing.
+Added: HDD manufacturing is a complex process involving the production and assembly of precision components with narrow tolerances and rigorous testing.
The manufacturing processes involve a number of steps that are dependent on each other and occur in “clean room” environments that demand skill in process engineering and efficient space utilization to control the operating costs of these manufacturing environments.
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We also leverage contract manufacturers when strategically advantageous.
−Removed: For more information on our agreement to sell a majority interest in one of our manufacturing facilities, see Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Developments .
HDD consists primarily of recording heads, magnetic media, controllers and firmware and a printed circuit board assembly.
We design and manufacture substantially all of the recording heads and magnetic media required for our products.
−Removed: As a result, we are more dependent upon our own development and execution efforts for these components and less reliant on recording head and magnetic media technologies developed by other manufacturers.
−Removed: We depend on an external supply base for all remaining components and materials for use in our HDD design, manufacturing and testing.
−Removed: We believe the use of our in-house manufacturing, assembly and test facilities provides the controls necessary to provide the demanding capabilities, performance and reliability our customers require.
−Removed: Our vertically integrated, in-house assembly and test operations for our HDD products are concentrated in Prachinburi and Bang Pa-In, Thailand;
+Added: we are more dependent upon our own development and execution efforts for these components and less reliant on recording head and magnetic media technologies developed by other manufacturers.
+Added: We depend on an external supply base for all remaining components and materials for use in our design, manufacturing and testing.
+Added: We believe the use of our in-house manufacturing, assembly and test facilities offers the controls necessary to provide the demanding capabilities, performance and reliability our customers require.
+Added: Our vertically integrated, in-house assembly and test operations are concentrated in Prachinburi and Bang Pa-In, Thailand;
Penang, Johor Bahru, and Kuching, Malaysia;
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and San Jose and Fremont, CA, USA.
−Removed: Substantially all of our flash memory supply utilized for our flash-based products is purchased from our joint ventures with Kioxia.
−Removed: From time to time, we also purchase flash memory from other flash manufacturers.
−Removed: Controllers are primarily designed in-house and manufactured by third-party foundries or acquired from third-party suppliers.
−Removed: We believe the use of our assembly and test facilities, as well as contract manufacturers, provides flexibility and gives us access to increased production capacity.
−Removed: We have developed deep relationships with these vendors and Kioxia to establish a continuous supply of flash-based memory and controllers.
We generally retain multiple suppliers for our component requirements, but for business or technology reasons, we source some of our components from a limited number of sole or single source providers.
For a discussion of such risks, see Part I, Item 1A, Risk Factors , of this Annual Report on Form 10-K.
−Removed: Ventures with Kioxia
−Removed: Our flash-based products consist of flash-based memory, controllers and firmware and other components.
−Removed: Substantially all of our flash-based memory is obtained from our joint ventures with Kioxia, which provide us with leading-edge, high-quality and low-cost flash memory wafers.
−Removed: We and Kioxia currently operate three business ventures, Flash Partners Ltd., Flash Alliance Ltd.
−Removed: and Flash Forward Ltd., (collectively “Flash Ventures”) across seven flash-based manufacturing facilities in Japan, six of which are located in Yokkaichi, Japan and one of which is located in Kitakami, Japan.
−Removed: Flash Ventures will begin flash-based manufacturing operations at an eighth facility in Japan in calendar year 2025.
−Removed: Through Flash Ventures, we and Kioxia collaborate in the development and manufacture of flash-based memory wafers using semiconductor manufacturing equipment owned or leased by each of the Flash Ventures entities.
−Removed: We co-develop flash technologies (including process technology and memory design) with Kioxia for Flash Ventures’ use.
−Removed: We hold a 49.9% ownership position in each of the Flash Ventures entities.
−Removed: We jointly control with Kioxia the operations of Flash Ventures, and we believe our participation in Flash Ventures helps us reduce product costs, increases our ability to control the quality of our products and speeds delivery of our products to our customers.
−Removed: Kioxia owns the facilities and provides wafer manufacturing services to Flash Ventures at cost using manufacturing equipment owned or leased by Flash Ventures and process technologies co-owned or contributed by us and Kioxia.
−Removed: We and Kioxia are entitled to purchase a share of Flash Ventures’ output, which generally equals 50% each.
−Removed: The price for which we and Kioxia pay Flash Ventures for flash memory wafers is cost plus a small markup.
−Removed: We are obligated to pay for variable costs incurred in producing our share of Flash Ventures’ flash-based memory wafer supply, based on a rolling forecast.
−Removed: In addition, we are obligated to pay for half of Flash Ventures’ fixed costs regardless of the output we choose to purchase.
−Removed: The agreements governing the operations of the Flash Ventures entities also set out a framework for any investment by the joint venture partners in flash manufacturing capacity.
−Removed: We have jointly invested, and intend to continue to jointly invest, with Kioxia in the manufacturing equipment needed to support Flash Ventures’ flash manufacturing operations.
−Removed: In addition, we are obligated to fund 49.9% to 50.0% of each Flash Ventures entity’s capital investments to the extent that the Flash Ventures entity’s operating cash flow is insufficient to fund these investments.
−Removed: For a discussion of risks associated with our business ventures with Kioxia, see Part I, Item 1A, Risk Factors , of this Annual Report on Form 10-K.
Sales and Distribution
−Removed: We sell our products to computer manufacturers and OEMs, cloud service providers, resellers, distributors and retailers throughout the world.
+Added: We sell our products to cloud service providers, computer manufacturers and OEMs, resellers, distributors and retailers throughout the world.
We maintain sales offices in selected parts of the world including the major geographies of the Americas, Asia Pacific, Europe and the Middle East.
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subsidiaries of foreign companies, represented 55%, 58% and 57% of our net revenue for 2025, 2024 and 2023, respectively.
−Removed: Sales to international customers are subject to certain risks not normally encountered in domestic operations, including exposure to tariffs and various trade regulations.
+Added: Our sales are subject to certain risks, including exposure to tariffs and various trade regulations.
For a discussion of such risks, see Part I, Item 1A, Risk Factors , of this Annual Report on Form 10-K.
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We also provide distributors, resellers and OEMs with other sales incentive programs.
−Removed: For each of 2024, 2023 and 2022, no single customer accounted for 10% or more of our net revenue.
−Removed: We have historically experienced seasonal fluctuations in our business with higher levels of demand in the first and second quarters as a result of increased customer spending.
−Removed: Seasonality is also impacted by cyclicality in the industry and macroeconomic conditions.
+Added: For 2025, three customers accounted for 17%, 12%, and 10%, respectively, of our net revenue.
+Added: For 2024 and 2023, no single customer accounted for 10% or more of our net revenue.
+Added: Cyclicality and Seasonality
+Added: Our business is subject to variability of sales because it is largely dependent on the buying patterns of our large Cloud customers, driven by their needs for deploying our technology in their data center buildouts, as well as on their ability to procure other products that go into such buildouts.
+Added: Our business is also impacted by cyclicality in the industry, as well as macroeconomic factors.
For a discussion of associated risks, see Part I, Item 1A, Risk Factors , of this Annual Report on Form 10-K.
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For additional information regarding our service and warranty policy, see Part II, Item 8, Note 1, Organization and Basis of Presentation, and Note 5, Supplemental Financial Statement Data, of the Notes to Consolidated Financial Statements included in this Annual Report on Form 10-K.
−Removed: Our people strategy supports our purpose of being the world’s iconic data storage company through thoughtful offerings and inclusive practices that aim to attract, develop and engage talent.
+Added: Our people strategy supports our vision of unleashing the power and value of data and our mission to be the market leader in data storage, delivering solutions for now and the future.
At the end of 2025, we employed approximately 40,000 people worldwide.
−Removed: Our diverse team spans 36 countries with approximately 85% of our employees in Asia Pacific, 13% in the Americas and 2% in Europe, the Middle East and Africa.
−Removed: To attract and retain the best talent, we strive to cultivate an inclusive environment where every individual can thrive through a sense of belonging, respect and contribution.
−Removed: Our Employee Resource Groups (“ERGs”) are designed to promote an inclusive culture that embraces the uniqueness of our employees.
−Removed: We have eight ERGs with multiple global chapters that focus on women, LGBTQ+, racial and ethnic minorities, military veterans and people with disabilities.
−Removed: In support of creating an inclusive environment, we also launched unconscious bias education to all professional and technical employees in 2024.
−Removed: We have multiple initiatives that focus on attracting talent and fostering our diverse representation across our global workforce, including diversity in personal characteristics, experience, skills, gender, race, ethnicity and membership in underrepresented communities.
−Removed: We continue to foster early talent through our intern and new college graduate recruitment programs, and in 2024, we converted nearly half of our global intern population to employees.
−Removed: In 2024, we launched our first-ever U.S.
−Removed: Department of Labor approved apprenticeship program, serving as a career pathway for veterans and other underserved populations.
−Removed: Furthermore, to minimize bias from the hiring process, we adopted data-driven tools as well as provided in-person and on-demand unconscious bias trainings to our recruiters and hiring managers.
−Removed: As of June 28, 2024, women represented 26% of our management positions and 24% of our technical staff.
−Removed: Additionally, members of Asian, Black/African American, Hispanic/Latino and other racially or ethnically diverse communities, represented 60% of our U.S.
−Removed: management positions.
−Removed: For additional details about our workforce, we encourage you to review our Sustainability Report, published annually and posted on our corporate website.
−Removed: Nothing on our website shall be deemed incorporated by reference into this Annual Report on Form 10-K.
−Removed: Talent Development and Engagement
−Removed: We believe in supporting our people through learning and development opportunities and our pay for performance philosophy.
+Added: Our diverse team spans 24 countries with approximately 88% of our employees in Asia Pacific, approximately 11% in the Americas and less than 1% in Europe, the Middle East and Africa.
+Added: Talent Growth and Engagement
+Added: We invest in developing our people to lead us into the future.
To help our employees reach their full potential, we aim to cultivate an environment that encourages learning, development and career growth.
−Removed: Our performance framework includes developing goals collaboratively through transparent and actionable feedback in regular check-ins and performance designations.
−Removed: Our new on-demand learning management system, launched in 2024, offers learning activities and tools to help employees chart their career journey and track their progress.
−Removed: To give employees the skills they need to lead, we offer learning through virtual fireside chats with external speakers and through our flagship program Leader Essentials, which received the bronze medal from the Brandon Hall Group HCM Excellence Awards for Leadership Development in 2024.
+Added: Our performance framework includes setting goals to establish clear expectations and receiving feedback and coaching to achieve them.
+Added: Our on-demand learning management system offers learning activities to help employees map their career journey, access learning online and track progress against development goals.
We also provide upskilling and reskilling opportunities to our factory employees through on-the-job training, technical classes, workshops and partnerships with universities and colleges.
−Removed: We believe ongoing engagement is key to retention, and we prioritize that in many ways.
−Removed: We believe that listening is crucial to identifying opportunities to strengthen employee engagement and influence our overall strategy.
−Removed: Our latest survey completed in 2024 had a participation rate of nearly 90%.
−Removed: The survey results indicated that for our professional/technical employees, the company excels in areas of manager satisfaction, prioritization of work and sense of purpose.
−Removed: Our factory employees indicated that sense of purpose, company prospects and feeling of belonging were the top areas of strengths.
−Removed: We also engage employees by taking action to promote and ground them in our core values and beliefs, and to support our commitment to conducting business in an ethical way.
−Removed: In 2024, we were named one of the World’s Most Ethical Companies by Ethisphere Institute for the sixth consecutive year.
+Added: We make it a priority to recruit exceptional talent across the organization.
+Added: We continue to foster the next generation of talent through our intern and new college graduate recruitment programs, and we converted about 40% of our eligible global intern population to employees in 2025.
+Added: We have a U.S.
+Added: Department of Labor approved apprenticeship program, serving as a career pathway for veterans and other underserved populations, which helps us build a workforce that mirrors the communities that we serve.
+Added: We believe employee engagement is key to performance and retention and that by listening to our employees we can better understand how we enable them to do their best work.
+Added: We use a combination of our employee survey and listening sessions at all levels to understand what we are doing well and identify opportunities to strengthen employee engagement in support of our business strategy.
+Added: We strive to cultivate an inclusive environment where every individual feels valued, respected, and appreciated, thereby enabling them to contribute effectively to the organization and excel in their roles.
+Added: Our initiatives celebrate the diversity of our workforce and ensure that all voices are heard.
+Added: Our Employee Resource Groups are employee-led and foster connections based on a shared identity or background and are open to all employees who want to join.
+Added: We continued our commitment to conducting business in an ethical way around the world.
+Added: In 2025, we were named one of the World’s Most Ethical Companies by Ethisphere for the seventh consecutive year.
Our employees also regularly participate in philanthropy to support the communities in which they work and live.
−Removed: In 2024, more than half of our employees gave their time to participate in company-sponsored volunteer events.
+Added: In 2025, more than half of our employees around the world gave their time to participate in company-sponsored volunteer events.
Compensation and Benefits
We believe that recognition is crucial for retaining and motivating our employees, and we are committed to rewarding performance with competitive compensation consisting of base salary and short-term and long-term incentives.
−Removed: We also offer a global recognition program to celebrate the contributions of employees who bring to life our core values – to think big, create possibility, make it happen and do it together.
+Added: We also offer a global recognition program to celebrate the contributions of employees who bring to life our core values:
+Added: Customers, Results, Connection, Excellence, and Innovation.
We invest in the physical, mental and financial well-being of our people through a dynamic and differentiated Total Rewards program that aligns to our culture and values.
−Removed: We provide competitive benefits (which vary by country/region), including health coverage, life and disability insurance, retirement plans, paid time off, employee assistance program and employee stock purchase plan.
−Removed: In 2024, we continued our multi-year journey to modernize our benefits portfolio to offer more choices to meet the unique needs of our diverse employees.
+Added: We provide competitive benefits (which vary by country or region), including health coverage, life and disability insurance, retirement plans, paid time off, employee assistance program and employee stock purchase plan.
We benchmark our compensation and benefits programs annually using market data from reputable third-party consultants.
We also conduct internal focus groups and employee surveys to inform programs and identify opportunities.
−Removed: To ensure that our pay practices are fair and equitable, we conduct an annual pay equity assessment to promote equal pay for equal work regardless of gender.
−Removed: This review analyzes current pay considering various non-discriminatory factors, such as seniority, experience, skills, performance, location, track and hiring and promotion dates.
−Removed: We use the results to make pay adjustments as needed.
−Removed: In 2024, our assessment covered 100% of our global employee population, and we furthered our pay equity efforts by engaging in a living wage analysis.
+Added: To ensure that our pay practices are fair, we conduct regular pay equity assessments to promote equal pay for equal work, as well as regularly engaging in a living wage analysis.
Health and Safety
We are committed to creating a safe work environment everywhere we operate.
−Removed: We provide extensive health and safety resources and training to all of our employees, especially those who work in our manufacturing and operations.
−Removed: We use an integrated management system to manage health and safety standards at our manufacturing facilities.
+Added: We provide extensive health and safety resources and training to all employees, especially those working in our manufacturing facilities, where we use an integrated management system to manage health and safety standards.
Government Regulation
Our worldwide business activities are subject to various laws, rules and regulations of the United States as well as of foreign governments.
−Removed: Compliance with existing or future governmental regulations, including, but not limited to, those pertaining to global trade, the environment, consumer and data protection, employee health and safety and taxes, could have a material impact on our capital expenditures, earnings, competitive position and overall business in subsequent periods.
+Added: Compliance with existing or future governmental regulations, including, but not limited to, those pertaining to global trade, the environment, consumer and data protection, employee health and safety, and taxes, could have a material impact on our capital expenditures, earnings, competitive position and overall business.
See Part I, Item 1A, Risk Factors for a discussion of these potential impacts.
Corporate Responsibility and Sustainability
−Removed: We believe responsible and sustainable business practices support our long-term success.
−Removed: As a company, we are deeply committed to protecting and supporting our people, our environment and our communities.
−Removed: That commitment is reflected through sustainability-focused initiatives as well as day-to-day activities, including our adoption of sustainability-focused policies and procedures, our publicly-recognized focus on fostering an inclusive workplace, our constant drive toward more efficient use of materials and energy, our careful and active management of our supply chain, our community-focused volunteerism programs and philanthropic initiatives and our impactful, globally-integrated ethics and compliance program.
+Added: At Western Digital, sustainability is about innovating with technology to positively impact our future.
+Added: We believe that sustainability can create value for everyone in our value chain and serves as a competitive differentiator, while minimizing our environmental footprint, influencing our ecosystem, empowering and connecting our stakeholders and embedding sustainability in our decision-making processes.
+Added: Our sustainability strategy is reflected through sustainability-focused initiatives as well as day-to-day activities, including our adoption of sustainability-focused policies and procedures, fostering an inclusive workplace, our constant drive toward more efficient use of materials and energy, our careful and active management of our supply chain, our community-focused volunteerism programs and philanthropic initiatives and our impactful, globally-integrated ethics and compliance program.
+Added: • We work to minimize our impact on the environment by reducing emissions, water withdrawal and waste to landfills, and by evaluating and enhancing our climate resiliency.
+Added: • We strive to innovate in ways that reduce the energy used by our products, the energy used to manufacture them and the amount of new materials required to manufacture them.
+Added: • We actively collaborate with customers, suppliers, industry associations, governments, academics, standards organizations and industry partners to generate value, reduce emissions across the ecosystem, and increase circularity to reduce raw materials extraction.
+Added: • We seek to foster a workplace of inclusion by hiring and developing team members with different experiences and creating opportunities for connections across the company through our Employee Resource Groups.
+Added: • We are guided by our global pillars centered on hunger relief, environmental quality and STEM (science, technology, engineering and math) education and activate employees locally to have an impact on their community.
• We seek to protect the human rights and civil liberties of our employees through policies, procedures and programs that avoid risks of compulsory and child labor, both within our company and throughout our supply chain.
−Removed: • We foster a workplace of dignity, respect, diversity and inclusion through our recruiting and advancement practices, internal communications and employee resource groups.
• We educate our employees annually on relevant ethics and compliance topics, publish accessible guidance on ethical issues and related company resources in our Global Code of Conduct and encourage reporting of ethical concerns through any of several global and local reporting channels.
−Removed: • We support local communities throughout the world, focusing on hunger relief, environmental quality and STEM (science, technology, engineering and math) education, especially for underrepresented and underprivileged youth.
−Removed: • We utilize a robust integrated management system, with associated policies and procedures, to evaluate and manage occupational health and safety risks, environmental compliance and chemical and hazardous substance risks.
−Removed: • We work to minimize our impacts on the environment through emissions reduction targets and other initiatives and to evaluate and enhance our climate resiliency.
−Removed: • We innovate to reduce the energy used by our products, the energy used to manufacture them and the amount of new materials required to manufacture them.
+Added: • We set new environmental goals post-Separation to expand our focus to include carbon-free energy alternatives, add an upstream direct emissions reduction goal and goals for increasing recycled content in products and packaging for our enterprise HDD portfolio.
Available Information
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