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Sony Group Corp (NYSE:SONY) is set to significantly enhance Hard Disk Drive (HDD) capacities through the mass production of laser diodes, a move poised to meet the growing demands of data centers worldwide.
Starting in May, Sony Semiconductor Solutions, in collaboration with Seagate Technology Holdings Plc (NASDAQ:STX) from the U.S., will manufacture these advanced diodes for use in 3.5-inch HDDs capable of storing 30 terabytes of data—double the capacity of current models.
To accommodate this innovative technology, Sony plans to invest approximately 5 billion yen ($33 million) into expanding its facilities in Miyagi Prefecture, Japan, and Thailand, Nikkei Asia reports.
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This technological advancement is characterized by its unprecedented precision, enabling lasers to target areas as minute as one-millionth of a millimeter on the disk’s surface.
Heating the storage area to 400 degrees or higher allows for denser data packing, significantly expanding the HDD’s storage capabilities.
This breakthrough comes at a crucial time, as the rise of startups and companies investing in generative artificial intelligence fuels an exponential increase in data center demand.
Research firm Statista projects global data generation to surge to 181 zettabytes by 2025, a 90% increase from 2022.
However, their substantial land and electricity requirements hinder the expansion of data centers.
Sony’s laser diode technology presents a solution to these challenges, promising to double data storage capacity without increasing space and cutting electricity consumption by about 40%, thus supporting the sustainable growth of data centers in the face of escalating data needs.
This week, Sony reported third-quarter FY23 sales growth of 22% year-on-year to $25.34 billion, beating the consensus of $24.62 billion.
Adjusted EPS of $1.99 beat the consensus of $1.65. It also shared plans to list its financial arm in October 2025.
On Friday, Macquarie analyst Damian Thong downgraded Sony from Outperform to Neutral.
Price Action: SONY shares traded lower by 2.34% at $89.84 premarket on the last check Friday.
Also Read: Sony Eyed $6B Investment In Japan’s Smartphone Sensor Factory
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by abolukbas via Shutterstock
