Toshiba Plans 600 Billion Yen Investment to Double AI Data Center HDD Output

Toshiba plans to double its production capacity for hard disk drives (HDDs) used in AI data centers by fiscal year 2027, with an investment of approximately 600 billion yen to expand its manufacturing base in the Philippines. This marks the company's first major HDD investment in five years.

As part of the expansion, Toshiba will introduce new production lines that can increase maximum per-disk storage capacity by up to 40%. The company will also automate inspection and cleanroom operations at the Philippine facility, which is expected to reduce the additional workforce typically required for such an expansion by about 40% and improve product yield.

The global HDD market is dominated by Western Digital, Seagate, and Toshiba. Toshiba currently holds a market share of just over 10% by storage capacity, with a medium-term target of 30%. As storage demand from AI data centers continues to grow, the company plans to mass-produce 65TB-class drives by 2030 and eventually move toward 100TB-class products.