Toshiba announced plans to invest approximately ¥60 billion to double its production capacity for HDDs used in AI data centers. It aims to achieve this within fiscal 2027 by expanding its Philippines facility and installing new production lines. Over the longer term, the company plans to increase capacity from the 65TB class to the 100TB class.
Toshiba disclosed plans to invest approximately ¥60 billion to double its production capacity for HDDs used in AI data centers. The company aims to achieve this within fiscal 2027, in what will be the HDD division’s first major capital investment in five years. The expansion will target its manufacturing facility in the Philippines and include the installation of new production lines, with the aim of ensuring a stable supply of a key component for AI infrastructure.
The expansion plan includes producing new HDDs with per-drive capacity increased by up to 40%, automating inspection processes and cleanrooms, and reducing the additional staffing required for increased production by 40% compared with the current approach. Improvements in yield are also expected from reductions in contamination and operating errors.
The medium-term target is to raise market share from approximately 11% currently to 30%. As part of its long-term strategy, Toshiba will continue increasing the capacity of HDDs for AI data centers, targeting mass production of 65TB-class products in 2030, followed by 100TB-class products. IDC forecasts steady HDD demand as the volume of data generated continues to grow.