A Queensland researcher has developed technology that massively increases the capacity of data storage devices through manipulating objects at a molecular level. Not much detail, but you can read a blurb here.

The article suggests its biggest use will be in handheld devices.

Update: There's a little more detail in this news item.

"The process of creating the nanotechnology drives involved manipulating thermally grown oxide layers on standard silicon wafers, viewed through powerful microscopes."