Seagate, Toshiba Reportedly Vie for TDK's HDD Head Unit
TDK is the only independent supplier of HDD magnetic heads and Toshiba's sole source of the components, according to reports of a multi-billion-dollar bidding contest.
Seagate Technology and Toshiba are reportedly competing to acquire TDK's hard disk drive magnetic head business in a deal valued at several billion dollars, according to tomshardware.com.
Executives from Seagate, Toshiba and TDK reportedly met in Tokyo last week to discuss mechanisms to preserve supplies of magnetic heads, including a possible joint venture. Toshiba denied that any meeting took place and denied plans to acquire HDD head production capability.
TDK is the world's only independent supplier of HDD magnetic heads and Toshiba's sole source of the components. Seagate and Western Digital manufacture heads internally and also buy them from TDK when they need additional supply.
In recent years, TDK started to produce HDD heads for Seagate's HAMR drives, Western Digital's EAMR products and Toshiba's MAMR HDDs. Toshiba's next-generation 30TB-class drives are expected to rely on MAS MAMR technology, with successors moving to HAMR.
Bidding timeline and market position
Toshiba reportedly approached TDK about acquiring its HDD head operation in spring 2026, and Seagate subsequently entered negotiations in summer with a higher offer. TDK has been directing more resources toward batteries, passive components and sensors in anticipation of increased AI-related demand.
TrendForce estimates that Seagate and Western Digital each account for approximately 45% of HDD shipments in terms of bits shipped, while Toshiba controls around 10%.
Quick answers
What business is Seagate and Toshiba reportedly bidding for?
TDK's hard disk drive magnetic head business, in a transaction valued at several billion dollars.
Did Toshiba confirm a meeting with Seagate and TDK in Tokyo?
No. Toshiba denied that any meeting took place and denied plans to acquire HDD head production capability.
Why is TDK's HDD head business important to Toshiba?
TDK is the world's only independent supplier of HDD magnetic heads and Toshiba's sole source of the components.