Key facts
- Fujifilm will invest 10 billion yen (about $63 million) to increase magnetic tape production capacity fivefold.
- The expansion is driven by the growing demand for data archiving fueled by generative AI.
- The increased capacity will be measured against fiscal year 2025 production levels.
- The investment will be made at Fujifilm's Kanagawa Factory, Odawara site.
- The project is scheduled to run from fiscal years 2026 through 2028.
- Fujifilm will primarily produce the LTO Ultrium10 tape, which uses fine hybrid magnetic particles.
Fujifilm announced on Thursday a significant investment of approximately 10 billion yen (about $63 million) to quintuple its production capacity for magnetic tape. The company attributes this surge in demand for archiving solutions to the exponential growth in data needs driven by the widespread adoption of generative AI. This expansion, set to occur at Fujifilm's Kanagawa Factory in Odawara from fiscal years 2026 through 2028, will make it the company's largest investment to date in dedicated LTO tape facilities. The focus will be on producing the latest-generation FUJIFILM LTO Ultrium10 tape. Major cloud service and data center operators are increasingly relying on magnetic tape for its cost-effectiveness and security, particularly its air-gap capability against cyber threats like ransomware.