AI data-center boom ignites bidding war for critical TDK unit
The winning bidder for TDK's magnetic-heads business would be able to expand in-house capabilities in the $23 billion hard-drive market.
A fierce bidding war has erupted over TDK's hard-disk drive (HDD) parts business, with potentially massive implications for Japanese industrial giant Toshiba as well as the rapidly growing AI data-center storage market. Seagate Technology Holdings and Toshiba, now delisted, are the main contenders for the magnetic-heads division in a deal likely worth several billion dollars.
The winning company would gain the ability to bolster its in-house expertise in the $23 billion hard-drive market, which has been reshaped by the intense demand for AI data-center storage. These cutting-edge data centers require suppliers to pack ever-increasing amounts of storage into smaller spaces. Consequently, prices for HDDs are soaring, and net income for Seagate and Western Digital - the dominant players controlling over 90% of the global HDD market according to research firm TrendForce - has skyrocketed in recent quarters.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
