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Toshiba Boosts AI Storage With $380M Philippine Expansion
8 Oct
Summary
- Toshiba invests $380 million to expand Philippine HDD production.
- New drives will increase storage capacity by 40% per unit.
- Company aims to nearly double AI storage HDD capacity by 2027.
Toshiba is investing approximately $380 million to significantly expand its hard drive manufacturing operations in the Philippines. This move, the company's first major HDD expansion in about five years, is driven by the escalating demand for storage solutions fueled by artificial intelligence.
The expansion aims to nearly double production capacity for AI and cloud storage drives by fiscal 2027. New production lines will accommodate drives capable of storing up to 40% more data than current models. Toshiba is also developing 65TB-class HDDs for around 2030, with future plans for 100TB models.
Hard drives remain vital for data centers due to their lower cost compared to SSDs, which are about 20 times more expensive. AI systems generate substantial data, creating a need for high-capacity, affordable storage. Toshiba currently holds over 10% of the global HDD market and aims to increase this share to 30%.
To support this growth, Toshiba is also automating inspection and cleanroom operations in its Philippine facilities, expecting to reduce staffing needs by 40% and improve yields. Component suppliers, like Nitto Denko, are also expanding capabilities to meet this rising demand.
