Toshiba invests $380M in Philippines HDD expansion to meet AI demand

hard disk drive production AI data center demand semiconductor supply chain Toshiba expansion memory chip shortage

Major semiconductor and storage manufacturers are significantly expanding capacity to meet the surging demand for artificial intelligence infrastructure.

Toshiba Corporation is investing approximately $380 million to expand its production facilities in the Philippines. This move aims to double its nearline hard disk drive (HDD) capacity by fiscal year 2027 to support AI data centers. The company plans to introduce higher-capacity drives, targeting 65 TB by 2030 and potentially 100 TB in the future. This expansion has caused market volatility, with competitors Seagate and Western Digital seeing stock price fluctuations as investors weigh the impact on industry supply discipline.

Simultaneously, AMD CEO Lisa Su announced plans to substantially increase chip production by 2027. To ensure a stable supply of GPUs and CPUs, AMD is strengthening its global supply chain through partnerships with manufacturers like TSMC and Foxconn, as well as memory leaders such as SK Hynix and Samsung. Su noted that the primary challenge to growth is not demand, but the availability of supply—specifically advanced wafers and memory chips—along the entire supply chain.