Toshiba is preparing to significantly increase its hard drive production capacity to meet the growing storage needs of artificial intelligence and data centers. The company is investing approximately 60 billion yen, or about $380 million, to expand its production facility in the Philippines.

This investment includes adding new production lines to Toshiba’s LTI facility in Laguna Technopark. While nearline HDDs will be produced on the new lines, the infrastructure for the production of the company’s next-generation high-capacity hard drives is also being prepared.

Production Capacity and New Technologies

Toshiba aims to increase storage capacity per drive by up to 40 percent with the new generation HDDs. This increase is said to refer to the company’s M12 series HDDs, which utilize MAMR (Microwave Assisted Magnetic Recording) technology.

These models, capable of up to 11 platters, are expected to offer capacities exceeding 30 TB. The completion of the new production lines and the commencement of initial shipments from these lines indicate that the company has increased its production speed.

The company will also significantly increase the level of automation in its production facility. Increased automation in pack room operations and HDD control processes will help improve production efficiency.

This automation initiative will reduce the need for additional workers by approximately 40 percent. This investment is also significant as it is Toshiba’s first major HDD production investment in approximately five years.

The rapid growth of artificial intelligence infrastructures, in particular, has significantly increased the demand for high-capacity nearline HDDs in data centers. Seagate and Western Digital are increasing their production thanks to strong demand for 30 TB and 40 TB class HDDs, while Toshiba is lagging behind with its current capacity.

The company is still competing with its 24 TB CMR and 28 TB SMR class models. However, it is stated that Toshiba has sold all of the HDDs it produced in the last quarters.

Future Targets and Market Share

Toshiba’s production investment will not be limited to 30 TB class HDDs. The company had previously announced a plan to develop 40 TB class HDDs with up to 12 platters by 2027.

However, 2027 is expected to focus particularly on increasing the production of the 30 TB class M12 series. Toshiba’s long-term plan includes much higher capacity hard drives.

The company aims to begin mass production of 65 TB class HDDs around 2030. Following this, the development of models reaching 100 TB capacity is planned.

These disks are expected to serve the rapidly growing storage needs of large-scale data centers, primarily for artificial intelligence. Toshiba’s investment will be a valuable part of this long-term roadmap.

At the same time, the company aims to increase its market share in the HDD market through increased production capacity. It is reported that Toshiba’s current market share in exabytes is approximately 10 percent, and the company aims to increase this to 30 percent in the medium term.

Do you think high-capacity HDDs are still the most logical solution for data centers in an era where SSDs are becoming widespread?