TDK has announced a new hard drive at CEATEC that manages to fit 260GB of data into a 1.8-inch form factor. Using their prototype TMR head, TDK is able to attain a surface recording density of 803 gigabits per square inch, besting Toshiba's previous 378 gigabits per square inch. The leap was made possible by combining the TMR head with recent perpendicular magnetic recording techniques, and TDK personnel still think it's possible to reach 1 terabit per square inch. [Techon Nikkei via SlashGear]
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Wait, there is no hard drive announced. The 1.8" 260GB is a theoretical based on the potential density.