Maxtor's merger with Quantum’s hard-disk drives business unit is designed to establish a disk-drive powerhouse, Maxtor CEO Mike Cannon has revealed.

The new-look Maxtor plans to generate revenue of $6 billion a year by shipping over 50 million disk drives, for use in desktop PCs, Intel-based servers and consumer electronic applications.

The demand for desktop disk-drives is growing by up to 17 per cent a year, from an installation base of 130 million units, Cannon said during a press session in Singapore.

The combined company will retain the Maxtor name, enabling the company to claim a disk-drive market share of about 35 per cent.

Cannon added: "When you look at the combined output of 50 million disk drives a year, there is a need for expansion capabilities.

"I am more interested in optimizing the gross margin of the company than I am driving market share. Naturally, we want to see the company grow. But to grow without profitability is not going to be useful in the long run."