Toshiba Plans to Double HDD Production Capacity for AI Data Centers
Toshiba plans to double its production capacity for mechanical hard disk drives (HDDs) used in AI data centers by fiscal year 2027, investing approximately 60 billion yen (about 2.55 billion yuan) to expand its Philippine facility.
Toshiba is set to double its production capacity for mechanical hard disk drives (HDDs) destined for AI data centers by fiscal year 2027, responding to a surge in data storage demand driven by the artificial intelligence boom.
The company will invest approximately 60 billion yen (around 2.55 billion yuan) to expand its manufacturing base in the Philippines. This expansion aims to build a more robust supply chain for the core components of AI infrastructure.
The global HDD market is highly mature and concentrated, dominated by Western Digital, Seagate, and Toshiba. Currently, Toshiba holds a market share of just over 10% by storage capacity, with a mid-term goal to increase this to 30%.
This expansion at its Philippine facility marks Toshiba's first significant HDD investment in nearly five years. Alongside new production lines, Toshiba will introduce new product lines, boosting storage capacity per disk by up to 40%.
Toshiba plans to mass-produce 65 terabyte (TB) HDDs by 2030 and eventually move towards 100 TB products. The company will also automate testing processes and cleanroom operations at the Philippine factory, expecting to reduce the need for new hires by about 40% while improving product yields.