Key facts
- Resonac Holdings and Nitto Denko will invest in a U.S. fund focused on AI hardware.
- The investment aims to find partners for collaboration on AI.
- Japanese suppliers are expanding production of key hard disk drive (HDD) components.
- The expansion is driven by increased investment in AI data centers.
- Resonac is part of the US-JOINT consortium developing advanced semiconductor-packaging technologies in Silicon Valley.
Japanese chip material manufacturers Resonac Holdings and Nitto Denko have agreed to invest in a U.S.-based fund focused on companies that produce chips and other artificial intelligence-related hardware. This move aims to foster collaboration and identify partners within the rapidly expanding AI sector.
The investment comes as the demand for AI infrastructure, particularly data centers, is driving a resurgence in the hard disk drive (HDD) market. Japanese suppliers, including TDK, JX Advanced Metals, Resonac, Nitto Denko, and HOYA, are expanding their production of key HDD components to meet this demand. TrendForce forecasts that nearline HDD shipments for data centers will grow at a compound annual growth rate of 23% between 2025 and 2030.
While solid-state drives (SSDs) have gained prominence, HDDs offer higher storage capacity and lower cost per terabyte, making them suitable for large-scale storage and backup in AI data centers. HDD manufacturers like Western Digital, Seagate Technology, and Toshiba are competing to commercialize enterprise HDDs exceeding 40TB, with roadmaps targeting 100TB products by 2029. Western Digital is qualifying its 40TB-class HDDs, while Seagate is already shipping 44TB HAMR-based drives. Toshiba is advancing its MAMR technology and plans to launch 40TB-class drives in 2027.
Resonac is also involved in the US-JOINT consortium, which operates an R&D center in Silicon Valley dedicated to developing advanced semiconductor-packaging technologies. This initiative, involving 12 Japanese and U.S. companies, aims to shorten the proof-of-concept period for new technologies and accelerate the commercialization of chiplets and advanced packaging solutions critical for generative AI computing.