Seagate and Toshiba battle for TDK's HDD head business, a critical hard drive component

Seagate Technology and Toshiba are reportedly competing to acquire TDK's hard disk drive magnetic head business in a transaction valued at several billion dollars, reports Bloomberg. For Seagate, the acquisition would expand the supply of HDD heads that it also produces internally, but for Toshiba, TDK is the only way for it to get magnetic heads for its hard drives. If Seagate buys TDK's HDD heads operation, then Toshiba's HDD business will depend on supply from Seagate.

TDK is the world's only independent supplier of HDD magnetic heads and Toshiba's sole source of the components. By contrast, Seagate and Western Digital manufacture heads internally and also buy them from TDK if they need to. In recent years, TDK started to produce HDD heads for Seagate's drives that rely on heat-assisted magnetic recording (HAMR) technology, Western Digital's products featuring energy-assisted magnetic recording (EAMR), and Toshiba's HDDs based on microwave-assisted magnetic recording (MAMR) technology, which makes it an important supplier for all …