Seagate, Toshiba Compete for TDK's Hard-Disk Head Business Amid AI Storage Demand

Seagate Technology Holdings and Toshiba are competing to acquire TDK's hard-disk head business, as both companies seek to keep pace with surging demand for storage in AI data centers, according to Bloomberg.

People familiar with the matter said Toshiba opened acquisition talks with TDK in spring 2026, followed by a higher bid from Seagate in the summer. The deal could be worth up to several billion dollars, though discussions remain confidential and preliminary, and the transaction could still fall through.

TDK is the world's only independent manufacturer of hard-disk recording heads, the components that read and write data inside drives. Seagate and Western Digital produce some heads in-house but still rely on TDK when demand spikes, while Toshiba depends entirely on TDK for the component. Toshiba also plans to mass-produce HAMR-based high-capacity drives, which requires TDK's technology support.

Executives from the three companies met in Tokyo in late September 2026 to discuss ensuring a stable supply of the key component, including the possibility of a joint venture. Any deal would face antitrust review. Acquiring the business would give the buyer greater pricing power and the ability to constrain rivals' capacity expansion, potentially reshaping the storage market tied to AI data centers.

TDK, based in Tokyo, has been considering selling the hard-disk head business because of its persistently low profitability and heavy R&D requirements. The company plans to focus on batteries, passive components and sensors, and expects AI-related demand from wearable devices such as smart glasses. A sale would free up cash to accelerate investment in those areas.