TDK Predicts Increase of Toshiba's Hard Drive Market Share

TDK Does Not Expect Seagate and WD to Capture the Lion's Share of HDD Market

by Anton Shilov
05/09/2011 | 10:36 PM

TDK, the world's only independent manufacturer of magnetic heads for hard disk drives (HDDs), said that while the business transactions between Seagate Technology and Samsung Electronics as well as Western Digital and Hitachi GST will reduce competition between hard drive makers, Seagate and WD will not rule the industry. In fact, TDK believes that Toshiba Corp. will manage to increase its share as well.

 

"It is as if large swings occurred in a row. However, in the past reorganizations of the HDD industry, one plus one was not equal to two. It will be the same this time too. We expect that Toshiba's market share will increase to about 20%," said Takehiro Kamigama, president and chief executive officer of TDK reports Tech-On web-site.

After the ongoing acquisitions get approved by anti-trust organizations and will be closed, Western Digital will command about 50% of the hard drive market, Seagate will have roughly 40% market share and Toshiba will have 10% of the market, according to IHS iSuppli market tracking firm.

According to Mr. Kamigama, large PC makers will try to have as many sources of hard drives as possible and therefore Toshiba will eventually receive higher amount of orders.

"Toshiba is now ready to increase its production," said Mr. Kamigama.

The chief executive of WD believes that going forward the demand towards hard drives will continue to grow. In order to boost performance of hard disk drives, manufacturers of HDDs will have to make hybrid storage devices that will combine flash and magnetic media.

"The demand for high-recording-density, high-speed and energy-saving HDDs will grow more than ever. The concept of storage devices will change due to the earthquakes that hit Japan, making it necessary to develop a technology to combine SSDs and HDDs. Also, recording capacity required by customers operating data centers will increase because they need to diversify the risk of losing precious data," said the head of TDK.

In order to further boost capacities of HDDs, the chief executive officer of TDK believes that heat-assisted magnetic recording (HAMR) should be used.

"By standardizing the heat assist recording method in the industry as soon as possible, we want to keep the competitiveness of the technology. Eventually, HDDs will no longer be used for notebook PCs. That's why we will aggressively break into the market for storage devices designed for clouds," said Mr. Kamigama.