Sony to Double Laser Diode Output for WD's HAMR HDDs

As generative AI technology continues to surge, the demand for high-capacity HDDs (hard disk drives) in data centers is rising steadily. Recently, Western Digital, a leading U.S. HDD manufacturer, has entered into a strategic collaboration with Sony Semiconductor to secure critical components for next-generation HAMR (Heat-Assisted Magnetic Recording) HDDs. Sony Semiconductor will provide the essential laser diodes required for HAMR HDD production.

To meet Western Digital's growing demand for these laser diodes, Sony Semiconductor plans to invest approximately 5 billion Japanese yen to expand production capacity at its Thailand facility, aiming to more than double output of these critical components.

Market data shows that Seagate holds nearly 50% of the global HDD market share, with Western Digital capturing about 40%. Western Digital is preparing to begin mass production of HAMR HDDs in the first half of 2027, initially launching products with storage capacities exceeding 40TB. Industry forecasts predict HAMR HDD shipments will approach 50 million units by 2028, accounting for over half of the total HDD market. Western Digital aims to secure a market share exceeding 40% in the HAMR HDD segment.

Sony Semiconductor, which started mass production of laser diodes for Seagate's HAMR HDDs in 2024, recently expanded its partnerships to include Western Digital. This collaboration is expected to significantly contribute to Sony Semiconductor's revenue growth.

The company plans to develop the laser diode business into a major revenue stream worth several tens of billions of yen, positioning it as its second-largest income source after image sensors. Currently, image sensors represent roughly 90% of Sony Semiconductor's revenue. Despite being the world's largest image sensor manufacturer, Sony Semiconductor's earnings from this segment are influenced by major clients such as Apple, prompting the company to diversify its revenue portfolio.

In 2024, Sony Semiconductor held a 53% global market share (by revenue) in image sensors, projected to increase to 56% in 2025. While the original target was to reach a 60% share by 2025, the company now expects this milestone to be achieved a few years later.