Bidding war over key component could eliminate third hard disk maker
Hard disk makers are bidding for a choke point. If Seagate wins TDK's drive-head unit, Toshiba could exit the market entirely—and AI data centers may feel the squeeze.
Why it matters
A supply-chain consolidation in hard disk manufacturing could narrow options for AI data-center storage. Seagate and WD are competing for exclusive access to a critical component supplier, driven by surging demand from AI workloads. If Seagate acquires TDK's business, the market shrinks from three players to two, and Toshiba loses its only path to independent production.
The key facts
11 to knowSeagate and WD control 90% of hard disk market; Toshiba relies on TDK for drive heads
Toshiba bid for TDK's drive-head business earlier in 2026; Seagate countered
Seagate cited AI data-center demand as motivation for securing TDK supply
WD announced HBDT (dual simultaneous read/write) and DPT technologies in February 2026, targeting 2x bandwidth
Seagate launched 30TB HDD using HAMR in July 2026; plans 32TB and 36TB models
If Seagate acquires TDK unit, Toshiba could be eliminated from hard disk market
Seagate and WD control 90% of HDD market; Toshiba relies on third-party TDK for drive heads
Seagate made counteroffer to Toshiba's bid for TDK's drive-head unit, citing need to meet AI data-center demand
If Seagate acquires TDK unit, could eliminate Toshiba as HDD manufacturer entirely
WD announced HBDT (high-bandwidth drive tech) and DPT (dual pivot) in Feb 2026; Seagate shipped 30TB HAMR drives in July 2026, plans 32TB and 36TB models
Drive-head manufacturing is critical bottleneck for HDD capacity scaling
Go to the source
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Publisher excerpt: What if the three remaining hard disk manufacturers became two? Seagate Technology and Western Digital control 90% of the market, according to market researcher TrendForce, with Toshiba picking up the crumbs. Seagate and WD both make their own magnetic drive heads, but Toshiba relies on a third…