Fujifilm to Invest 10 Billion Yen to Increase Magnetic Tape Production by Fivefold

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Fujifilm announced on October 29 that it will enhance its production capacity of magnetic tape for data storage by approximately five times by the fiscal year 2025. The company plans to invest 10 billion yen to boost manufacturing facilities and personnel. This increase aims to meet the rising demand for long-term data storage driven by the proliferation of generative AI.

The investment will be directed towards the Odawara site in Kanagawa. Between 2026 and 2028, Fujifilm will proceed with facility enhancements and personnel expansions to ensure a stable supply of its latest generation magnetic tape, FUJIFILM LTO Ultrium10.

According to the company, the rapid increase in data volume due to the expansion of generative AI and cloud services is driving the need for storage solutions. Magnetic tape is gaining traction among major cloud service providers and data center operators for its ability to store large amounts of data at a low cost over extended periods.

Additionally, magnetic tape can be physically separated from networks, making it a valuable measure to prevent data loss or damage from cyberattacks such as ransomware. The 40TB model of FUJIFILM LTO Ultrium10 can store 40TB of uncompressed data, and up to a maximum of 100TB when compressed. The term 'approximately five times' refers to the total recording capacity of shipped tapes, not the recording capacity per tape.