Fujifilm to quintuple magnetic tape production capacity

Fujifilm Holdings has announced a plan to increase its magnetic tape shipment capacity fivefold by fiscal 2028, compared to fiscal 2025 levels. The company will invest approximately 10 billion yen (roughly $63–$64 million) into its Kanagawa Factory's Odawara Site in Japan between fiscal 2026 and fiscal 2028.

The investment aims to expand manufacturing facilities and increase personnel to meet the growing demand for data archiving. This surge in demand is driven by the rapid expansion of generative AI and cloud services, which generate massive volumes of data for AI training and inference.

Magnetic tape is increasingly utilized by major cloud service providers and data center operators due to its ability to store large amounts of data at a low cost over long periods. Additionally, tape offers a security advantage through physical isolation from networks, providing a defense against ransomware and other cyberattacks. The expansion will primarily target the latest LTO Ultrium 10 generation technology.