Toshiba Plans to Double HDD Capacity to Meet AI Demand
Toshiba plans to double its hard disk drive production in the Philippines, triggering a stock selloff for competitors Seagate and Western Digital.
Toshiba announced plans to double its hard disk drive production capacity at its manufacturing facility in the Philippines to meet rising demand from AI data centers. The Japanese electronics company aims to capture 30% of the market by storage capacity, positioning itself more aggressively against its larger competitors.
The announcement triggered a sharp selloff of hard disk drive stocks on October 2, 2026. Investors feared that increased supply would erode the pricing leverage currently held by market leaders. Seagate Technology Holdings shares fell between 10% and 14.8%, while Western Digital shares dropped 7%.
Both Seagate and Western Digital have previously attributed their fiscal 2026 success to a tight supply environment. While broader technology and memory stocks remained stable, the hard disk drive sector declined due to concentrated exposure to the product line Toshiba is expanding. Analysts note that long-term contracts may provide some protection for the established leaders through 2027.
