Seagate and Toshiba are reportedly fighting to acquire TDK's HDD magnetic-head technology

Seagate and Toshiba are locked in a fierce battle to acquire TDK's magnetic-head technology for hard drives. TDK, once a major player in recording media, now focuses on sensors, power supplies, and advanced electronic devices. The Japanese company holds one of the few remaining independent manufacturers of HDD magnetic heads, crucial components in the rapidly evolving world of artificial intelligence and data storage.

Toshiba initiated talks with TDK earlier this year, while Seagate made a more substantial offer during the summer. The acquisition's value is estimated to be in the billions of dollars. The successful bidder would secure TDK's HDD magnetic-recording head production, bolstering their hard drive business for years to come. Seagate, Toshiba, and Western Digital are the three surviving HDD manufacturers, with Seagate and WD already possessing their own magnetic-head production lines.

Toshiba, relying on external partners like TDK, could suffer severe consequences if it loses access to TDK's support.

The potential acquisition could turn into an industry-threatening situation. Representatives from Seagate, Toshiba, and TDK met in Tokyo to discuss the matter, with executives from all parties considering the creation of a joint venture. However, talks are still in the preliminary stages, and the agreement's finalization remains uncertain.

Seagate and WD control roughly 45% of the modern HDD market, while Toshiba accounts for the remaining 10%. TDK is no longer interested in producing HDD magnetic heads, as the company seeks fresh funds to invest in battery production, passive components, and sensors.