Toshiba has invested approximately ¥60 billion ($380 million) to expand hard drive assembly capacity at its Laguna Technopark facility in the Philippines, doubling its nearline HDD production capacity in fiscal 2027 compared with fiscal 2025. Additional manufacturing lines have already been installed and made their first shipments, meaning the new capacity is at least partly qualified and the ramp of next-generation drives can begin at any time. The project is Toshiba's first substantial HDD manufacturing investment in about five years.
The expansion is designed to support drives that increase storage capacity per unit by as much as 40%, pointing to the company's upcoming M12-series HDDs using microwave-assisted magnetic recording (MAMR), up to 11 platters, and capacities above 30TB. Toshiba has also reiterated plans for 40TB-class drives with up to 12 disks in 2027, followed by 65TB-class HDDs around 2030 and eventually 100TB-class drives. To manage higher output, the company will add automation to cleanroom operations and drive inspection, reducing the need for additional employees by 40%.
The investment comes as demand for nearline drives is surging, driven largely by AI data-center workloads. Seagate and Western Digital have seen strong demand for 30TB and 40TB-class HDDs, while Toshiba currently lags with 24TB CMR and 28TB SMR models—yet it has sold out every unit it produced in recent quarters. All three HDD makers appear late to expand capacity. Toshiba expects the new lines and next-generation products to help raise its market share from around 10% today, measured by exabytes shipped, to 30% in the medium term.