Toshiba invests $380M to double HDD production capacity by 2027, targeting 30TB+ drives

Production Capacity Expansion

Toshiba has allocated approximately ¥60 billion ($380 million) to enhance its hard drive assembly capabilities at its Laguna Technopark (LTI) facility in the Philippines. This investment is projected to double the company's production capacity for nearline HDDs by fiscal 2027, compared to fiscal 2025 levels.

Next-Generation HDD Development

The expansion aligns with Toshiba's plans to introduce 30TB-class hard disk drives in 2027. The facility upgrades will also support the production of future 65TB-class HDDs by 2030 and 100TB-class drives. New manufacturing lines have been installed to produce nearline drives and accommodate next-generation models, which are expected to increase storage capacity per drive by up to 40%. This likely refers to the M12-series, utilizing microwave-assisted magnetic recording (MAMR) technology and up to 11 platters for capacities exceeding 30TB.

Operational Improvements and Market Context

Toshiba is implementing increased automation in cleanroom operations and drive inspection to improve manufacturing yields and manage higher output. This automation is also expected to reduce the need for additional employees by 40%. This investment marks Toshiba's first significant HDD manufacturing expansion in approximately five years, occurring amidst high demand for nearline drives, particularly from the AI sector. While competitors like Seagate and Western Digital have seen strong demand for 30TB and 40TB-class HDDs, Toshiba has also sold all its produced units in recent quarters, indicating a broader industry need for increased capacity.