Key facts
- Japanese companies are expanding production of hard-disk drive components to meet demand from AI data centers.
- TDK is expanding production of HDD heads and suspensions, and investing in next-generation HAMR heads.
- Toshiba plans to double AI data center HDD capacity by fiscal 2027, investing JPY 60 billion (US$380 million) in its Philippine plant.
- TrendForce forecasts nearline HDD shipments for data centers to grow at a CAGR of 23% between 2025 and 2030.
- Western Digital plans to invest about US$1 billion in Japan over five years through 2030.
Japanese companies are significantly expanding production of components for hard-disk drives (HDDs) as the rapid growth of artificial intelligence drives demand for data storage. This surge in investment is revitalizing the HDD industry, which had previously seen a decline as solid-state drives (SSDs) gained prominence.
Key Japanese suppliers including TDK, JX Advanced Metals, Resonac, Nitto Denko, and HOYA are increasing their capacity for essential HDD components such as magnetic heads, recording media, glass substrates, and flexible printed circuits. This expansion is driven by the increasing need for ultra-high-capacity enterprise storage in AI data centers.
While SSDs offer faster speeds, HDDs provide a lower cost per terabyte and higher storage capacity, making them suitable for large-scale data storage and backup in AI infrastructure. Market research firm TrendForce forecasts that nearline HDD shipments for data centers will grow at a compound annual growth rate (CAGR) of 23% between 2025 and 2030.
Major HDD manufacturers like Western Digital, Seagate Technology, and Toshiba are competing to commercialize drives exceeding 40TB, with roadmaps targeting 100TB. Western Digital is qualifying its 40TB-class HDDs and plans to mass produce them in the second half of 2026, while Seagate is already shipping 44TB HAMR-based HDDs. Toshiba is advancing its MAMR technology and plans to launch 40TB-class drives in 2027.
In response to this demand, TDK announced plans in May 2026 to expand production of HDD heads and suspensions and is investing in next-generation HAMR heads. Toshiba plans to double its AI data center HDD capacity by fiscal 2027, investing approximately JPY 60 billion (US$380 million) to expand its facilities in the Philippines. Western Digital also plans to invest about US$1 billion in Japan over five years through 2030.