Nitto Denko to Invest ¥28 Billion to Increase HDD Component Production, Addressing AI Data Center Demand

Nitto Denko will invest ¥28 billion to increase production of HDD components. The company is expanding its Vietnam plant to meet demand from AI data centers.

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The story

Nitto Denko will invest in increased production of suspension components, which are used in the manufacture of HDD circuit boards, by fiscal 2028. The investment will total ¥28 billion, with production capacity planned to increase by approximately 40% from FY2025.

The suspension components produced by the company support HDD magnetic heads and transmit read/write signals. Nitto Denko maintains a high market share in HDD-related components among Japanese manufacturers.

The investment includes expanding and reinforcing the Vietnam plant, with increased local production capacity to meet demand related to AI data centers.

Against a backdrop of growing demand from AI data centers, the market is reported to view demand for HDD suspension components as increasing.

At a glance

Investment amountAn investment of ¥28 billion will be made.

TimingCompletion is targeted by fiscal 2028.

RegionIncludes expansion and reinforcement of the Vietnam plant.

ScaleProduction capacity will be increased by approximately 40% versus FY2025.

ProductSuspension components that support HDD magnetic heads.

NatureSupplies components with a market share of more than 90%.

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