Toshiba to Invest 60B Yen to Double HDD Production for AI Data Centers

Toshiba announced plans to invest approximately 60 billion yen by FY2027 to double its HDD manufacturing capacity at its Philippines plant. This marks the company's first major investment in hard disk drive production in nearly five years, directly addressing the massive surge in storage demand from AI data centers. As generative AI workloads consume and generate immense volumes of data, data center operators urgently require high-density, cost-effective long-term storage. By expanding capacity, Toshiba aims to increase its market share in enterprise HDD storage from just over 10% to 30%, challenging market leaders Seagate and Western Digital. Along with capacity expansion, Toshiba plans to introduce new product lines that boost single-drive storage capacity by up to 40%, targeting 65 TB drives by 2030 and eventually 100 TB models. The expansion will also automate cleanroom operations and quality inspection, reducing new labor requirements by 40% while improving production yields.