Morgan Stanley: TDK (6762.T) — Nikkei Reports Company Considering Sale of HDD Head Business
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Citing a Nikkei report dated October 8, 2026, Morgan Stanley notes that TDK (6762.T) has begun considering the sale of its HDD head business and has held preliminary talks with Toshiba and Seagate Technology. No official announcements have been made, and TDK had already designated the business as one under intensive monitoring. The segment posted two loss-making years through F3/24, returned to profit in F3/25, and achieved significant profit improvement in F3/26, with F3/27 HDD head shipments expected to grow 40% YoY. TDK holds a significant share of the HDD head market, supplying Seagate, Western Digital, and Toshiba, and has a long restructuring history, including the 1996 sale of Silicon Systems to Texas Instruments. Morgan Stanley argues a divestment would fit TDK's pattern of portfolio optimization, potentially sharpening focus on core sensor and battery businesses; options include improving margins and retaining the unit, exiting, or transferring it to the best owner. The firm rates TDK Overweight with a ¥4,000 target.
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