Race to 100TB HDD heats up as Seagate pulls rug under Western Digital, Toshiba feet by acquiring HAMR-specialist waynewilliams@onmail.com (Wayne Williams) | usagoldmines.com

• Seagate is set to buy Intevac, a specialist in HAMR drive production
• HAMR is seen as the technology which is going to drive HDDs to 100TB+
• The move is a serious blow to Western Digital and Toshiba’s own HAMR plans

Seagate is charging ahead in its quest to produce super-sized HDDs. Towards the end of January 2025, the world’s largest hard drive vendor introduced a 36TB model – arriving just a month after it debuted a 32TB one – and it revealed at the time that a 60TB drive is on its way.

Now, the firm has announced plans to acquire Intevac, a company known for making sputtering systems that apply ultra-thin layers of material, such as an iron-platinum alloy (FePt), to HDD platters. This advanced deposition process allows for the creation of magnetic layers with higher uniformity, improved signal-to-noise ratios, and fewer defects, potentially resulting in denser data storage. Over 65% of the world’s hard disk output is produced using Intevac’s systems, which works out to more than 50 million disks per month. The technology is considered essential for Perpendicular Magnetic Recording (PMR) and Heat-Assisted Magnetic Recording (HAMR).

HAMR, which lowers magnetic resistance by heating the drive, allows data to be written in smaller, more stable bits and will likely to be a key factor in HDDs reaching 100TB capacities. By buying Intevac, Seagate has potentially scored a big win over its rivals. Seagate is Intevac’s primary customer, but Western Digital is one too, and it, along with Toshiba, has HAMR drives in the works.

Unanimously approved

The definitive agreement will see Seagate acquire Intevac in an all-cash transaction for $4 per share. Intevac will also pay a one-time special dividend of $0.052 per share (bringing the aggregate consideration to Intevac stockholders to $4.052 per share). Separately, Intevac’s Board of Directors has declared a regular quarterly dividend of $0.05 per share, which will be paid on March 13, 2025, to Intevac stockholders.

As a result of the move, Intevac will no longer hold its earnings call, which had been set for February 25.

Intevac’s Board of Directors has unanimously (and unsurprisingly) approved the transaction and recommended that all stockholders tender their shares in the offer.

The acquisition is expected to close in late March or early April 2025, although, as Blocks and Files points out, “Western Digital or Resonac [which counts Toshiba as a customer] or both could object to the deal on reduced competition grounds, which could delay its completion or even prevent the transaction from taking place.”

That’s unlikely of course – Seagate wouldn’t have moved forward with the acquisition if its lawyers were anticipating problems of that magnitude.

Seagate will be able to increase HAMR drive production following the acquisition, but the move could hamper Western Digital and Toshiba’s efforts in that department, as it would mean buying the sputtering tools they need from Seagate, a major rival.

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