Fujifilm Corp. (Tokyo) has decided to invest approximately 10 billion yen at its Kanagawa Factory, Odawara Site to increase its production capacity for data storage magnetic tape by approximately five times. The investment will strengthen Fujifilm’s stable supply system for magnetic tape in response to growing data archiving demand accompanying the spread of generative AI. This investment, to be made from fiscal 2026 through fiscal 2028, will be used to expand manufacturing facilities and increase personnel to strengthen the production structure.
The rapid spread of generative AI and cloud services is driving exponential growth in the volume of data generated worldwide. As a result, establishing environments in which the enormous amounts of data accumulated through AI training and inference, as well as the digitalization of business activities, can be stored and used securely and efficiently is becoming increasingly important in supporting the digital society. Magnetic tape can store large volumes of data over long periods at low cost and can also be physically isolated from networks.
In recent years, the use of magnetic tape has been expanding, particularly among major cloud service providers and data center operators. Furthermore, given the sophistication of cyberattacks, magnetic tape is attracting increasing attention as a means of protecting data from threats such as ransomware.
Fujifilm began research into magnetic tape in the 1950s and subsequently expanded its business in response to changing data recording and storage needs, including the launch of broadcast videotape and consumer high-definition videotape. Since launching the “FUJIFILM LTO Ultrium1” data storage magnetic tape in 2000, Fujifilm has worked to improve magnetic tape performance by leveraging its proprietary materials technologies and precision coating technologies. In 2011, Fujifilm became the first company in the world to commercialize barium ferrite (BaFe) magnetic particles for use in magnetic tape. In 2025, the company launched the latest-generation “FUJIFILM LTO Ultrium10,” which uses proprietary “fine hybrid magnetic particles” combining technologies for BaFe and strontium ferrite (SrFe) magnetic particles. Through such technological innovation, Fujifilm has led advances in magnetic tape capacity and currently holds the top global share of the magnetic tape market.
Through this investment, Fujifilm will expand manufacturing facilities, primarily for its latest-generation “FUJIFILM LTO Ultrium10” data storage magnetic tape, and increase personnel to ensure stable supply. The approximately 10 billion yen investment represents the largest investment Fujifilm has made to date in dedicated facilities for LTO tape. Fujifilm will enhance its ability to meet the growing demand for data archiving while ensuring a more stable supply to customers.