Key facts
- Toshiba plans to double hard disk drive production capacity by fiscal 2027.
- The expansion targets AI data centers and hyperscale data centers.
- Toshiba's Philippine plant, TIP, will undergo expansion.
- This is Toshiba's first major HDD investment in about five years.
- HDDs remain crucial for data centers, storing about 80% of their data.
Japanese technology group Toshiba is set to double its production capacity for hard disk drives (HDDs) by fiscal year 2027, a move driven by the escalating demand for data storage fueled by the artificial intelligence boom. The expansion will primarily focus on its manufacturing base in the Philippines, Toshiba Information Equipment (Philippines), Inc. (TIP).
This initiative represents Toshiba's most significant investment in its HDD business in approximately five years. The growth in AI infrastructure and hyperscale data centers is creating a substantial demand for components like CPUs, SSDs, and HDDs, leading to supply chain tightening, longer lead times, and increased prices for these critical elements. HDDs continue to be a workhorse for data centers, storing an estimated 80% of the data they handle, particularly nearline drives, which have seen steady year-on-year growth.
Atsushi Ikeda, involved in HDD manufacturing at TIP, highlighted the company's efforts to operate at full capacity and advance the development of high-capacity models to meet rising demand. TIP, established in 1996, is celebrating its 30th anniversary and serves as a major global manufacturing hub for Toshiba. The company entered the HDD business in 1967 and is recognized as one of the world's top three HDD manufacturers.