Toshiba plans to double HDD production capacity for AI data centers within FY2027 from its 2025 level, targeting a 30% share by storage capacity, up from ~10%

Hard-disk drive prices will fall as Toshiba doubles capacity, making on-premises AI storage more affordable.

Toshiba plans to significantly increase its hard-disk drive (HDD) production capacity, aiming to double it by fiscal year 2027 compared to 2025 levels. This expansion is driven by the surging demand for data storage solutions needed to support the rapidly growing artificial intelligence (AI) sector. The company intends to capture a 30% share of the AI data center storage market by capacity, a substantial increase from its current approximately 10% stake. As part of this strategy, Toshiba will expand its HDD manufacturing plant in the Philippines, marking its first major investment in this business segment in approximately five years. This move also includes efforts to enhance the per-unit storage capacity of the drives produced.

The AI boom has created an unprecedented demand for data storage, a market segment where traditional HDDs are experiencing a resurgence. Toshiba's decision to double production and increase its market share signals a strategic pivot to capitalize on this trend, directly challenging the dominance of solid-state drives (SSDs) in certain AI infrastructure applications. By focusing on capacity and cost-effectiveness, Toshiba aims to fill a critical gap for large-scale data storage needs that even high-performance SSDs may not be able to meet economically.

This move by Toshiba indicates a broader trend of established storage manufacturers adapting to new technological demands, potentially reshaping the competitive landscape of data center hardware. The increased HDD supply could influence pricing strategies across the industry and make hybrid storage solutions more attractive for AI workloads, affecting cloud providers and enterprises alike. Investors and competitors will be closely watching Toshiba's execution and its impact on market dynamics in the coming years.