Seagate and Toshiba Compete for TDK Magnetic-Heads Business

Seagate Technology Holdings Plc and Toshiba Corp. are competing to acquire the magnetic-heads business for hard-disk drives from TDK Corp. The potential deal, which could be valued at several billion dollars, is driven by the surge in demand for storage devices used in AI data centers.

Toshiba initiated acquisition discussions with TDK in the spring of 2026. However, Seagate entered the process during the summer by submitting a higher offer.

The competition comes as hard-disk drive manufacturers scale for AI infrastructure. Toshiba has previously stated plans to roughly double its manufacturing capacity for AI data center drives by fiscal 2027.