Core Viewpoint - Despite the ongoing impact of SSDs on the consumer HDD market, there remains significant demand for HDDs in data centers, enterprise storage, and big data processing due to their advantages in large capacity and low-cost storage [1] Company Summary - As of the first half of 2025, the sales volume of the company's substrate business has significantly increased compared to the same period last year [1] - The sales volume of the hard disk head business has declined year-on-year due to the impact of customer capacity layout shifts [1] - The company aims to seize opportunities from the explosive growth in data storage demand and the upcoming technological upgrades in the storage industry driven by innovations such as HAMR (Heat-Assisted Magnetic Recording) [1] - The company plans to continuously optimize its product matrix and business model while actively expanding into emerging business areas to maintain its technological leadership in the storage industry [1]

Core Viewpoint - The HDD glass substrate industry is facing challenges due to the rapid growth of SSDs, leading to a shrinking market for HDD glass substrates, which is projected to decline from $8.87 billion in 2024 to $5.53 billion by 2031, with a compound annual growth rate (CAGR) of -5.70% from 2025 to 2031 [13]. Industry Status - The production of HDD glass substrates is highly concentrated, with Hoya being the sole manufacturer, operating three production bases in Southeast Asia (Thailand, Vietnam, and Laos) [2]. - The HDD industry is mature but is experiencing a decline in demand due to competition from SSDs, particularly in consumer applications like laptops, while still maintaining strong demand in data centers and enterprise storage [3]. Technological Advancements - Continuous improvements in glass substrate manufacturing technology, especially in surface treatment and smoothness, are enabling higher density storage solutions [4]. - New technologies such as MRAM (Magnetoresistive Random Access Memory) and HAMR (Heat-Assisted Magnetic Recording) are being developed to support advanced storage media and heads [4][5]. Market Trends - The demand for higher density storage is driving the development of glass substrates, particularly with the support of HAMR and MAMR (Microwave-Assisted Magnetic Recording) technologies [5]. - The HDD market is expected to maintain stable demand in the medium to long term, especially in cloud services and data centers that require large-capacity, low-cost storage solutions [8][19]. Competitive Landscape - The rise of SSDs is intensifying competition, prompting HDD manufacturers to innovate with new technologies and materials to enhance market competitiveness [6]. - The production process for HDDs is moving towards greater automation and intelligence, utilizing AI and big data analytics to optimize production efficiency and yield [7]. Application Segmentation - Data centers are the primary application for HDD glass substrates, projected to account for 60.30% of global market revenue in 2024 [19]. - While HDDs remain relevant in enterprise storage, they are gradually being replaced by SSDs in consumer electronics due to advantages in speed, shock resistance, and power efficiency [9].