Toshiba to double HDD production capacity amid devastating shortages

Toshiba has spent approximately ¥60 billion ($380 million) to expand its hard drive assembly capacity in the Philippines, doubling its production capacity for nearline HDDs in fiscal 2027 compared to fiscal 2025, reports Nikkei. The capacity expansion coincides with Toshiba's plans to launch next-generation 30TB-class hard disk drives in 2027 and will prepare the company for 65TB-class HDDs by 2030 and 100TB-class drives in the future.

As part of the expansion, Toshiba has installed additional manufacturing lines at its Philippine Laguna Technopark (LTI) facility to build nearline hard drives and prepare it to produce next-generation HDDs that increase storage capacity per drive by as much as 40%. The 40% claim clearly points to the company's next-generation M12-series hard drives that rely on microwave-assisted magnetic recording (MAMR) technology, use up to 11 platters, and offer capacities of over 30TB.

Meanwhile, as the new product lines have already been installed and the first shipments from them have been made (meaning that the new production lines are at least partly qualified), the ramp of next-generation drives can start anytime.

In addition, the company plans to introduce more automation in its cleanroom operations and drive inspection, measures aimed at improving manufacturing yields amid increased output. The new automation will also reduce the requirement for additional employees by 40%.

The project represents the company's first substantial HDD manufacturing investment in around five years and comes as demand for nearline drives is skyrocketing. So far, both Seagate and Western Digital have enjoyed strong demand for 30TB and 40TB-class HDDs from the AI sector. While Toshiba is lagging with 24TB CMR and 28TB SMR hard drives, it has also sold out every single unit it has produced in recent quarters. Arguably, all three HDD makers are late to expand their production capacity.

Meanwhile, the expansion is only one step in Toshiba's longer-term HDD roadmap. The company recently reiterated plans to introduce its 40TB-class HDDs with up to 12 disks inside in 2027, so the expansion will be instrumental for the ramp of these products as well. Yet, it remains to be seen whether the company will at least formally introduce its 12-platter 40TB-class models in calendar year 2027, as next year seems to be dedicated to the ramp of the company's 30TB-class M12-series of HDDs.

The company intends to continue investing in manufacturing capabilities to begin volume production of 65TB-class HDDs around 2030, followed eventually by 100TB-class drives, according to the report. These products will address growing storage requirements in AI and other large-scale data centers. Toshiba also expects the new production lines and next-generation HDDs to help it increase its market share from around 10% today, measured by exabytes shipped, to 30% in the 'medium term,' according to the report.

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