Hard disk drive maker Seagate (STX) and Western Digital (WDC) saw a sharp drop before, falling more than 9% and more than 11% respectively.
$WDC
The reason may be that Japan’s Toshiba plans to double the production capacity of data center mechanical hard disk drives (HDD).
According to Nikkei News, Toshiba plans to double the production capacity of mechanical hard disk drives (HDD) used in AI data centers within fiscal year 2027. The company will invest about 60 billion yen to expand its facilities in the Philippines to build a more stable supply system, providing key components for AI infrastructure. This expansion is the company’s first large-scale investment in its HDD business in about five years. In addition to adding production lines at its factories, Toshiba will produce new products, with the storage capacity of a single drive increasing by up to 40%. Demand for HDD storage capacity in AI data centers continues to grow. Toshiba will continue to make capital expenditures, aiming to achieve mass production of 65TB-class drives by 2030 and ultimately mass production of 100TB-class drives. Solid-state drives (SSDs) have faster read/write speeds than HDDs but cost about 20 times as much as the latter. Tight supply of storage chips is further increasing demand for HDDs.
$WDC
The reason may be that Japan’s Toshiba plans to double the production capacity of data center mechanical hard disk drives (HDD).
According to Nikkei News, Toshiba plans to double the production capacity of mechanical hard disk drives (HDD) used in AI data centers within fiscal year 2027. The company will invest about 60 billion yen to expand its facilities in the Philippines to build a more stable supply system, providing key components for AI infrastructure. This expansion is the company’s first large-scale investment in its HDD business in about five years. In addition to adding production lines at its factories, Toshiba will produce new products, with the storage capacity of a single drive increasing by up to 40%. Demand for HDD storage capacity in AI data centers continues to grow. Toshiba will continue to make capital expenditures, aiming to achieve mass production of 65TB-class drives by 2030 and ultimately mass production of 100TB-class drives. Solid-state drives (SSDs) have faster read/write speeds than HDDs but cost about 20 times as much as the latter. Tight supply of storage chips is further increasing demand for HDDs.
