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Behind the Data Boom: A Story of Bold Decisions and Visionary Minds

How business and technological gambles, driven by an unwavering venture spirit, reshaped hard disk drive technology for the digital world.

When the first hard disk drive (HDD) for computers became commercially available in 1956, it was a refrigerator-sized component capable of storing just five megabytes of data. This bulky, early iteration of the HDD was a far cry from the compact, high-performance data-storage systems that power the world today, and a key to this transformation lies in a tiny yet crucial component known as the magnetic head. This small piece of technology is where TDK's Takehiro Kamigama, relying on innovative prototypes developed by engineer Joichiro Ezaki, took strategic gambles that would advance data storage and shape the digital world we know today.

Foreseeing the Digital Future

Responsible for reading and writing data on an HDD, the magnetic head is a key component in determining the device’s data storage capacity. Early magnetic heads were made with materials such as ferrite, which had constraints that limited miniaturization. In 1984, TDK’s engineer Joichiro Ezaki developed a magnetic head prototype using malleable thin film materials. As this material could be cut into small pieces, the prototype could read data more finely, thereby increasing the storage capacity of HDDs.

Driven by a strong conviction that these new magnetic heads were the future, Ezaki requested several billion yen—constituting approximately 15% of TDK’s annual capital investment—to establish a designated research and development facility for this technology. Despite the financial uncertainty, as the prototype had yet to prove profitable for TDK, the company’s leadership was won over by Ezaki’s vision and invested in the opening of the Asama Techno Factory in Nagano, Japan. But three years after its opening, the factory failed to turn a profit. With pressure mounting, Ezaki and his team remained steadfast in their belief that thin-film magnetic heads would soon become vital in the digital age. And in 1990, TDK's gamble finally paid off.

Leading the Way with Technology

With the rise of personal computing, the digital world grew rapidly during the last decade of the 20th century. Manufacturers needed HDDs that could store more data, making innovative HDD heads essential. TDK's magnetic head sales reached $20 million ($4 billion yen) in 1990, more than triple the figure from two years prior, and became the company's primary business by 1995.

It was at this time that a new visionary emerged at TDK to drive the company forward. Takehiro Kamigama, who would later become the CEO of TDK, played an instrumental role in advancing the quality and production of the company’s magnetic heads. Not content with merely fulfilling clients’ orders, Kamigama studied and evaluated magnetic heads directly so he could learn how to create a truly industry-leading product.

Kamigama was later assigned to SAE Magnetics, a Hong Kong-based company TDK acquired to keep up with the skyrocketing demand for magnetic heads. The acquisition was not without its challenges; many SAE employees resigned after being taken over by a foreign company, and morale was low among the remaining staff. The core team, which included members from Japan, China, and Taiwan, was also confronted by language barriers and clashing business practices that stifled productivity. To overcome this, Kamigama promoted an open office dynamic that embraced each team member’s strengths and leveraged their shared passion for technology. Under Kamigama’s leadership, the once-divided team found strength and unity in its diversity.