Toshiba invests $380 million to double HDD output as AI demand surges
The storage maker is expanding its Philippine facility to ramp production of 30TB drives in 2027 and work toward 65TB and 100TB models by 2030.
Toshiba is committing approximately ¥60 billion ($380 million) to expand hard drive assembly operations at its Philippines facility, with the goal of doubling nearline HDD production capacity by fiscal 2027 relative to fiscal 2025, according to Nikkei. The investment aligns with the company's roadmap to introduce 30TB-class drives in 2027, followed by 65TB-class models around 2030 and 100TB-class drives further out.
At its Laguna Technopark facility in the Philippines, Toshiba has brought online new manufacturing lines dedicated to nearline hard drives and equipped to handle next-generation products that will boost storage density by as much as 40% per unit. This capacity increase points to Toshiba's upcoming M12-series drives, which employ microwave-assisted magnetic recording (MAMR) technology, accommodate up to 11 platters, and deliver capacities exceeding 30TB.
Production lines have already been installed and initial shipments have begun, indicating that the new equipment is at least partially qualified. This means the ramp-up of next-generation drives can commence at any time.
Toshiba plans to introduce greater automation in cleanroom operations and drive inspection processes to boost manufacturing yields as output increases. The automation investments will also cut the need for additional staff by 40%.
This represents Toshiba's largest HDD manufacturing investment in roughly five years, arriving as demand for nearline storage has accelerated dramatically. Seagate and Western Digital have both seen strong uptake for 30TB and 40TB drives from the artificial intelligence sector. Toshiba currently trails with 24TB CMR and 28TB SMR offerings, though every unit the company has manufactured in recent quarters has sold through. Industry observers note that all three major HDD makers have been slow to expand production.
The expansion is part of a broader Toshiba strategy for hard drives. The company has previously announced plans to roll out 40TB-class models with up to 12 platters in 2027, and the new capacity will support that launch. Whether Toshiba will formally introduce its 12-platter 40TB variants in calendar 2027 remains uncertain, as the company appears focused on ramping its 30TB M12-series first.
Looking further ahead, Toshiba intends to continue investing in manufacturing to reach volume production of 65TB-class drives around 2030, with 100TB-class drives to follow. These products are designed to meet expanding storage needs in AI and large-scale data center deployments. The company also expects the new production lines and advanced HDDs to help lift its market share from roughly 10% today, measured in exabytes shipped, to 30% in the medium term.