Fujifilm to quintuple magnetic tape production amid AI data growth
Fujifilm is investing 10 billion yen to expand its magnetic tape manufacturing capacity fivefold by 2028, citing the surge in data storage needs driven by artificial intelligence.
Fujifilm has announced a 10 billion yen (approximately $63 million) capital expenditure plan to increase production of magnetic data storage tape. The project, which targets a fivefold increase in capacity by the end of fiscal year 2028, aims to address the rising demand for long-term archiving solutions necessitated by the global expansion of generative artificial intelligence.
The investment will be centered at the company’s Kanagawa Factory in Odawara, Japan. Fujifilm stated this initiative represents the largest capital commitment to its LTO (Linear Tape-Open) tape facilities to date. The funds are earmarked for expanding manufacturing infrastructure and increasing headcount to support the production of the next-generation LTO Ultrium 10 tape.
While cloud-based data storage often captures public attention, magnetic tape remains a critical component of the cold storage market due to its cost-efficiency and durability. As artificial intelligence models require massive datasets for training and long-term retention, the demand for high-capacity, low-energy archiving media has seen a resurgence. This expansion positions Fujifilm to maintain its supply chain role for data centers facing exponential growth in information storage requirements.