Beginning early next year, Seagate Technology will begin shipping its first widely available hard drives with built-in encryption.The Momentus 5400 FDE.2 (Full Disk Encryption 2) will include a special encryption chip that will make it impossible for anyone to read data off the disk, or even boot up a PC, without some form of authentication. Designed for notebook computers, the 2.5-inch, 5,400-RPM drive will come with a storage capacity of 80GB, 120GB or 160GB.Users could give a password to gain access to the drive, but Seagate expects notebook vendors to also develop other authentication systems such as fingerprint and smart card readers.Though PC makers have not yet publicly announced support for the technology, which Seagate is calling DriveTrust, the disk maker expects "many" PC makers to ship systems with the disks, said Scott Shimomura, a senior product marketing manager with Seagate.Seagate is also working with software vendors to develop things such as enterprise password management systems that work with the drives, he said.This kind of widespread adoption would distinguish the FDE.2 from Seagate\u2019s first attempt at full drive encryption, the Momentus 5400 FDE, announced in June of last year.That drive, which was not adopted by any major hardware makers, was considered a proof-of-concept product, Seagate now says.Unlike the FDE, the FDE.2 will ship with better-performing 128-bit advanced encryption standard (AES) encryption and faster serial advanced technology attachment interface.Seagate\u2019s drives will be available to notebook manufacturers around January, which means they should ship in notebooks shortly thereafter, Shimomura said. Though Seagate wouldn\u2019t say how much of a premium users would pay for encrypted drives, Shimomura said the price markup would be comparable with the cost of software-based encryption. That would put the extra charge for an encrypted notebook at less than US$100.Seagate also expects to expand DriveTrust to its desktop and storage array platforms at some point, Shimomura said. "There\u2019s nothing to say that this couldn\u2019t eventually make its way into the smaller form factor drives as well," he added. "Right now, we\u2019re trying to address the markets that have the most immediate need."A recent survey by security vendor Vontu and The Ponemon Institute found that 81 percent of respondents reported that their companies had lost laptops containing sensitive information in the previous year. In 2006, lost or stolen laptops have been blamed for possible data breaches at Ernst & Young, Ahold USA and, most famously, the U.S. Department of Veterans Affairs.By Robert McMillan, IDG News Service (San Francisco Bureau)Keep checking in at our Security Feed for updated news coverage.