Fujifilm expands magnetic tape production amid ai-driven data growth

Fujifilm announced on Thursday that it will invest approximately 10 billion yen ($63 million) to expand its magnetic tape production capacity fivefold. The move is driven by the surge in data storage demand fueled by generative AI, which the company claims is causing exponential growth in global data needs. The investment will focus on its Kanagawa Factory in Odawara, making it the largest dedicated LTO tape facility investment in Fujifilm's history. The project, spanning fiscal years 2026 to 2028, will fund manufacturing expansion and hiring for the production of the latest-generation 'FUJIFILM LTO Ultrium10' tape. The increased capacity will be measured against fiscal year 2025 production levels. This expansion underscores Fujifilm's strategic shift toward meeting the rising demand for reliable, long-term data archiving solutions in the AI era.