Toshiba plans to double its AI data center HDD production capacity by fiscal year 2027, investing 60 billion yen to expand its facilities in the Philippines.

(1) According to Nikkei, Japan's Toshiba plans to double its hard disk drive (HDD) production capacity for AI data centers by fiscal year 2027. (2) The company intends to invest approximately 60 billion yen to expand its facilities in the Philippines, aiming to establish a more stable supply system and provide key components for AI infrastructure; this marks Toshiba's first large-scale investment in its HDD business in about five years. (3) In addition to adding new production lines at its factories, Toshiba will produce new products, with single hard drives seeing storage capacity increases of up to 40%. (4) Demand for HDD storage capacity in AI data centers continues to grow, and Toshiba will continue capital expenditures with the goal of achieving mass production of 65TB-level hard drives by 2030, and eventually realizing mass production of 100TB-level hard drives. (5) Solid State Drives (SSD) have faster read and write speeds than HDDs, but their cost is about 20 times higher. (6) Tight supply of storage chips is further boosting demand for HDDs.