Fujitsu is considering entering the market for small size hard-disk drives. The drives are typically used in portable digital devices such as music players.
The sector has become one of the most competitive parts of the hard-disk market because of the popularity of devices such as Apple's iPod music player.
No decision had been made yet by Fujitsu but the matter was under consideration, Fujitsu spokesperson, Scott Ikeda, said. His comments followed new reports that Fujitsu planned to enter the market this year.
Fujitsu currently makes 3.5-inch and 2.5-inch drives for server computers.
Drives with 1-inch or 1.8-inch diameter platters are finding favour in portable digital entertainment devices including music and movie players.
Apple's iPod uses a 1.8-inch drive while its iPod Mini uses a 1-inch drive. The 1.8-inch drives are also used in some notebook computers.
January's Consumer Electronics Show (CES) provided some indicators of the competition in the 1-inch drive market. Seagate Technologies announced plans to expand its 1-inch drive production to Compact Flash form-factor models aimed at end users.
At the same event Cornice and Hitachi Global Storage Technologies (HGST) announced plans for more capacious versions of their drives.