The stakes differ sharply for the two bidders. Seagate and Western Digital already make heads internally and top up from TDK when demand spikes, but Toshiba depends entirely on TDK. That dependence matters for Toshiba's roadmap: its upcoming 30TB-class drives are expected to use MAS MAMR technology, while later generations will move to HAMR, and developing HAMR heads is reportedly difficult and time-consuming. TDK already produces heads for all three manufacturers' advanced recording technologies.

Bloomberg reports that Toshiba approached TDK in spring 2026, with Seagate entering negotiations in the summer with a higher offer. Executives from all three companies reportedly met in Tokyo last week to discuss ways to preserve head supplies, including a possible joint venture. The talks are preliminary and may produce no deal. Toshiba has denied that any meeting took place and that it plans to acquire head production capability, while Seagate and TDK reportedly declined to comment. Any acquisition would also likely face regulatory scrutiny given the market's concentration: TrendForce estimates Seagate and Western Digital each ship roughly 45% of HDD bits, with Toshiba at about 10%. For TDK, a sale would fund a pivot toward batteries, passive components and sensors aimed at AI-related demand.