Seagate Counteroffers for TDK Drive Head Unit as AI Demand Raises 90% HDD Supply Stakes
Updated
Updated · Computerworld · Oct 9
Seagate Counteroffers for TDK Drive Head Unit as AI Demand Raises 90% HDD Supply Stakes
1 articles · Updated · Computerworld · Oct 9
Summary
Seagate has made a counteroffer for TDK’s drive head business after Toshiba bid for the unit earlier this year, aiming to secure a critical component for hard-disk production.
AI data-center demand is driving the move: Seagate fears losing access to TDK heads could constrain output as only three hard-disk makers remain and Seagate and Western Digital already control 90% of the market.
TDK supplies Toshiba, which depends on outside drive heads, while Seagate and Western Digital mostly make their own and tap TDK for extra capacity when needed.
A Seagate win could further squeeze Toshiba—Bloomberg said it might even push Toshiba out of the HDD market—while rivals keep advancing capacity and speed with Seagate’s 30TB HAMR drive and Western Digital’s bandwidth upgrades.