Seagate and Toshiba are reportedly competing to acquire TDK's hard disk drive magnetic head business, a transaction that Bloomberg values at several billion dollars. TDK is the world's only independent supplier of these components, which are essential for reading and writing data on modern hard drives. Both Seagate and Western Digital manufacture heads internally but also purchase them from TDK when demand spikes; Toshiba relies on TDK as its sole source.
If Seagate wins, Toshiba's HDD business would depend on a direct competitor for a critical part. TDK's technology is especially important for Toshiba's future drives, which are expected to shift from MAS MAMR to HAMR recording—a technology where TDK has become a key enabler. The report says Toshiba approached TDK in spring, and Seagate entered negotiations later with a higher offer. Executives from all three companies reportedly met in Tokyo to discuss options, including a possible joint venture, though Toshiba denied that any meeting or acquisition plan exists, while Seagate and TDK declined to comment.
Control of TDK's head operation would give the buyer significant leverage over pricing and rivals' ability to expand output. Given TDK's unique position and the concentrated HDD market—TrendForce estimates Seagate and Western Digital each hold about 45% of bit shipments, with Toshiba at 10%—any deal would likely attract regulatory scrutiny. The negotiations remain preliminary and could still fall apart.