Fujifilm announced Thursday it will invest roughly 10 billion yen (about $63 million) to increase magnetic tape production capacity fivefold, measured against fiscal year 2025 levels. The company attributes surging demand to generative AI's "exponential growth" in data needs worldwide.
The investment targets Fujifilm's Kanagawa Factory in Odawara and will run through fiscal years 2026 to 2028. It represents "the largest investment Fujifilm has made to date in dedicated LTO tape facilities." The expansion will fund manufacturing capacity and additional staff, primarily to produce the latest "FUJIFILM LTO Ultrium10" tape.
Cloud giants and data center operators are expanding tape use because it stores large data volumes at relatively low cost. Tape cartridges can be disconnected and stored offline in separate facilities. Fujifilm notes that air-gapping tape provides defense against cyberattacks and ransomware.
Fujifilm released its first LTO Ultrium storage tape in 2000. In 2025 it debuted LTO Ultrium10, which uses "fine hybrid magnetic particles" combining barium ferrite with strontium ferrite technology. Each generation has increased both compressed and uncompressed storage limits.