NANOMEM: IBM nanotechnology creates 1-terabit memory chip
ZURICH, Switzerland � IBM Corp. has developed a prototype terabit memory that stores a trillion bits of data, or twenty times more than a current disk drive, in a square inch. Created with micromachining techniques, IBM said the Millipede non-volatile memory is only the beginning of even denser memories. The Millipede chip uses silicon micromachining techniques to precisely move a silicon substrate coated with a thin-film polymer beneath an array of 1,024 parallel activated 20-nanometer read/write heads, which were also etched from silicon.

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Story in EE Times: http://www.eet.com/at/news/OEG20020611S0018