Seagate and Western Digital slide on reported Toshiba hard-drive capacity expansion
Seagate and Western Digital shares fell sharply on Friday after Nikkei reported that Toshiba intends to nearly double hard-disk-drive capacity for AI data centers by fiscal 2027. Toshiba is targeting a 30% share of the HDD market, raising concerns that greater supply could challenge the tight market that has supported the two U.S. manufacturers.
Why it matters
The reported expansion introduces a potential additional source of HDD supply for customers of Seagate and Western Digital. Citi said Toshiba's dependence on outside component suppliers could constrain the expansion, while Morgan Stanley said the expected HDD shortfall through calendar 2028 remains larger than Toshiba's planned addition.
Key facts
- 1Nikkei reported that Toshiba plans to nearly double HDD production capacity by fiscal 2027. zerohedge.com
- 2Toshiba aims to raise its HDD market share to 30%. zerohedge.com
- 3Seagate and Western Digital shares each fell more than 10% during the session. zerohedge.com
- 4Toshiba's planned production lines can lift storage capacity per drive by as much as 40%. zerohedge.com
Open questions
- Toshiba has not confirmed the reported plan.
- Reports differ on projected spending, citing $380M and $400M.
- Reports also conflict on fiscal 2027's end date, giving March 2027 or March 2028.
Summary written by AlphAI from 20 of 23 sources. Not investment advice. Figures are as stated by the linked sources.