Fujifilm to Boost Magnetic Tape Output Fivefold by 2028 for AI Data Security

Fujifilm Holdings announced on October 29, 2026, a major expansion of its magnetic tape production capacity. The company will invest approximately 100 billion yen in its manufacturing facility in Odawara, Kanagawa Prefecture, between the current fiscal year and 2028, increasing production capacity roughly fivefold based on 2025 output volumes. This represents the company's largest investment in LTO (Linear Tape-Open) tape equipment to date and marks the first major production expansion in approximately 20 years.

The expansion targets growing demand for data storage driven by the rapid adoption of generative AI and cloud services. Fujifilm will focus on manufacturing the latest-generation FUJIFILM LTO Ultrium10 tape, which features a maximum capacity of 100 terabytes (in compressed format). The investment will fund manufacturing equipment upgrades and workforce expansion to strengthen the company's stable supply capabilities.

Magnetic tape storage offers several advantages for modern data management. Unlike solid-state drives or hard disk drives, magnetic tape can be disconnected from networks, providing protection against ransomware and other cyber threats. It also offers lower storage costs and is suited for long-term data archival, though with slower information processing speeds than alternatives. Major cloud service providers and data center operators have increasingly adopted magnetic tape for these reasons, particularly as cybersecurity threats intensify.

Fujifilm, which began magnetic tape research in the 1950s and holds the global market leadership in data storage magnetic tape, has a history of technological innovation in the field. The company pioneered the use of barium ferrite magnetic material in 2011 and recently developed a hybrid micro-particle magnetic material combining barium ferrite and strontium ferrite technologies for the LTO Ultrium10 generation.

The expansion reflects broader industry trends where mature recording technologies benefit from demand growth in the AI era. With the volume of globally generated data accelerating due to generative AI, cloud services, and digital transformation across enterprises, the need for secure, cost-effective long-term data storage solutions has become increasingly critical to supporting a sustainable digital society.