Fujifilm to invest $63 million to boost LTO tape production fivefold

• Fujifilm will invest approximately 10 billion yen ($63 million) to increase its magnetic tape production capacity fivefold relative to fiscal year 2025 levels.
• The expansion targets the production of FUJIFILM LTO Ultrium10 tape, the first storage solution to use fine hybrid magnetic particles combining barium ferrite and strontium ferrite.
• Generative AI is cited as the primary driver for the surge in archiving demand, creating exponential growth in global data needs.
• Major cloud service and data center operators are expanding tape usage for low-cost storage and as an air-gapped defense against sophisticated cyberattacks and ransomware.

Investment Details

• The project will run from fiscal years 2026 through 2028 at the Kanagawa Factory, Odawara site.
• It represents the largest investment Fujifilm has made to date in dedicated LTO tape facilities.
• Funds will cover manufacturing expansion and additional personnel.

Technical Context

• Fujifilm has produced magnetic tape for data storage since the 1950s and released its first LTO Ultrium tape in 2000.
• The company was the first to commercially produce tape with barium ferrite magnetic particles in 2011.
• LTO Ultrium10 debuted in 2025, marking a significant increase in both compressed and uncompressed storage limits compared to previous generations.