Areal Technology

Areal Technology, Inc.

Company type	Subsidiary (from 1993)
Industry	Computer storage, Hard disk drives
Founded	1987 (1987)
Founder	Jack Swartz
Defunct	1999 (1999)
Fate	Filed for dissolution and ceased all business activities
Headquarters	Santa Clara , United States
Key people	Jack Swartz (founder, former CEO), Mike Kirby (CEO from 1990), Steve Drexler (chairman from 1990), Mitsuhiro Naoe (chairman until 1997)
Products	Hard disk drives (notably glass substrate platters)
Number of employees	105 (1991)
Parent	Tomen Electronics and Sanyo (from 1993)

Areal Technology, Inc. was a U.S.-based manufacturer of hard disk drives active from 1987 until 1999, recognized for introducing glass substrates in hard drive platters. This breakthrough allowed for increased data storage densities and enhanced resistance to shocks, which quickly became an industry standard. In 1993, Areal transitioned into a joint venture between Tomen Electronics and Sanyo, functioning as their subsidiary until its closure in 1999.

Establishment (1987–1988)

Jack Swartz established Areal Technology in late 1987 in Santa Clara, California, drawing upon his background as a co-founder of Maxtor Corporation. A number of Maxtor executives joined him to form the new enterprise. By March 1988, the company had inaugurated a research and development center in Tucson, Arizona, and later that year began operations at its first manufacturing facility in Point Arena, California.

The company’s debut products were the BP-50 and BP-100 models—3.5-inch hard drives with capacities of 50 MB and 100 MB respectively—released in October 1988. These drives were the first to utilize ultra-flat glass platters provided by Hoya Optics, which offered superior storage density and durability compared to conventional aluminum platters. To cater to the portable computer sector, Areal pioneered the use of polycarbonate plastic components—such as actuator arms and enclosures—manufactured with a specialized Lexan resin developed by GE Plastics to reduce weight.

This innovative combination of glass-based platters and lightweight materials gave Areal a distinct advantage in the competitive hard drive market throughout the late 1980s and early 1990s.

Japanese investment and leadership change (1988–1990)

In December 1988, Areal obtained a significant capital investment from Nippon Sheet Glass (NSG) and Tokyo Boeki, who acquired minority ownership stakes. By April 1989, the company expanded its R&D operations into a 35,000-square-foot facility and employed 42 personnel by the end of that year. Between 1988 and mid-1990, Areal raised approximately $7.5 million from Japanese investors including Toyo Menka Kaisha and Tomen Electronics. In 1990, Areal switched its glass platter supplier from Hoya to NSG.

Although investment levels rose and the workforce at Point Arena grew, challenges with logic board design flaws and production costs repeatedly delayed the release of Areal’s 3.5-inch hard drives. Japanese stakeholders exerted pressure on the company to enter the rapidly developing 2.5-inch drive segment, despite founder Kirby’s preference for focusing on the established 3.5-inch market. Ultimately acquiescing, Areal introduced its MicroDrive (MD) series of 2.5-inch glass platter hard drives in late 1989, offering capacities ranging from 49 MB to 100 MB.

Missed deadlines for delivering production samples and design documentation to computer manufacturers due to delays with the 3.5-inch drives created tension between Japanese investors and CEO Swartz. This disagreement over strategic direction led to Swartz being removed from his position in July 1990. Mike Kirby assumed the role of CEO while Steve Drexler took over as chairman. Kirby immediately discontinued all ongoing 3.5-inch drive projects to concentrate solely on advancing the development of 2.5-inch drives. By this point, Areal’s employee count had declined to 25 individuals.

Market introduction (1990–1991)

In November 1990, Sanyo committed $7 million to Areal and collaborated to manufacture the MD-2000 series hard drives at scale. The initial product, the MD-2060, provided 60 MB capacity on a single glass platter equipped with dual read heads. It was released in limited quantities that same month, produced at Areal's Point Area facility. By December 1990, the company’s staff numbered 60 employees.

Following Areal’s acquisition of a $4 million order from Disk Technologies Corporation in December 1990, Sanyo commenced mass production of the MD-2060 in February 1991. This model was the first commercially produced hard drive utilizing glass platters, preceding Toshiba’s 40 MB MK-1122FC which entered full-scale manufacturing in April 1991. Although Toshiba manufactured over 1,000 units per month—substantially more than Sanyo—laptop models from Toshiba incorporated Areal’s higher-capacity drives during that year. Areal’s employee count reached its highest point at 105 in February 1991.

Expansion (1991–1993)

In October 1991, Areal introduced its premier A-Series 2.5-inch drives, specifically the A180 and A120 models. The A180 stood out as the largest capacity 2.5-inch drive available then, delivering 180 MB across two platters. That same year, Areal formed a partnership with Singapore-based Wearnes Technology to serve as an additional manufacturing source.

By May 1992, Areal broadened its market reach beyond OEMs by launching the E-Series external drives, which connected through parallel ports and included passthrough ports for peripheral devices. In November 1992, the company revealed the AA9180 disk array system, which combined nine 180-MB drives within a single 5.25-inch bay and featured RAID functionality such as RAID 5, aimed at enterprise-level storage solutions.

Acquisition and decline (1993–1999)

Areal reported sales nearing US$44 million and shipped approximately 150,000 drives throughout 1992. In January 1993, Japanese corporations Tomen and Sanyo purchased a controlling interest for $3 million, converting Areal into a subsidiary under Japanese ownership. By mid-1993, the workforce had decreased to fewer than 100 employees.

The company’s last hard drive model was the A1080 launched in 1995—a 2.5-inch drive offering a capacity of 1.08 GB. Under chairman Mitsuhiro Naoe, Areal functioned as a holding company until 1997 but ultimately filed for dissolution in March 1999, ceasing all business activities.

See also

• Areal density (computer storage)