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.
Seagate to start qualifying record-setting 50TB HDDs in 2027
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/hdds/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/hdds/toshiba-to-double-hdd-production-capacity-as-30tb-class-loom-65tb-100tb-drives-on-the-roadmap-for-2030-and-beyond#main
- https://www.tomshardware.com/membership
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Informational only. No financial advice. Do your own research.