Fujifilm announced plans to invest approximately 10 billion yen, or about $63 million, to increase its magnetic tape production capacity fivefold to support data archiving driven by artificial intelligence.
Boosting Production for AI Data Needs
As reported by Ars Technica, the company stated that the surge in archiving demand stems from the spread of generative AI, which is generating exponential growth in data requirements globally. The fivefold capacity increase will be measured against production levels for fiscal year 2025.
The funding will be directed to Fujifilm’s Kanagawa Factory at the Odawara site, marking the company’s largest investment to date in dedicated linear tape-open facilities. The expansion project spans from fiscal years 2026 through 2028, covering manufacturing expansion and new personnel to primarily produce the latest-generation LTO Ultrium10 tape.
Enterprise Storage and Security Benefits
While mainstream consumers moved away from tape decades ago, the enterprise sector continues to utilize it, with major cloud providers relying on tape to back up massive data stores. Fujifilm began working with magnetic tape as a storage medium in the 1950s, launched its first LTO Ultrium storage tape in 2000, and pioneered commercial production of barium ferrite magnetic particles in 2011.
In 2025, the company introduced the LTO Ultrium10, which utilizes fine hybrid magnetic particles combining barium ferrite and strontium ferrite technology. Each new generation of tape has delivered substantial increases in compressed and uncompressed storage limits.
Major cloud service and data center operators are expanding their reliance on magnetic tape because it offers high-volume storage at a relatively low cost. Fujifilm noted that tape backups can be physically disconnected and stored safely in a drawer, vault, or separate facility, providing an essential air-gapped defense against ransomware and sophisticated cyberattacks.
