Japanese HDD component makers see revival due to AI boom

The surge in artificial intelligence (AI) is driving a massive increase in data storage demand, creating a revival opportunity for Japanese hard disk drive (HDD) component manufacturers. While AI data centers often focus on graphics processing units (GPUs) and high-bandwidth memory, hard drives remain essential for storing the vast datasets required for AI training and inference.

Several Japanese companies hold critical positions in the HDD supply chain. Resonac Holdings is currently the world's only external supplier of HDD media. TDK remains a leading manufacturer of magnetic heads used for reading and writing information. Other key players include NHK Spring, which leads the global market in suspension systems and precision springs; MinebeaMitsumi and Nidec, which are primary suppliers of spindle motors; and Nitto Denko, which holds a significant share of the HDD printed circuit board market.

The industry faces high technological barriers due to the extreme precision required. The gap between the read head and the storage medium is measured in nanometers. Yasushi Makabe of Resonac describes this precision by comparing it to “a giant jet flying only 2 or 3 millimeters above the ground.”