Fujifilm to Increase Production Capacity by 5x for Magnetic Data Storage Tape

Investing approximately 10 billion yen to meet growing data archiving demand driven by the spread of generative AI, strengthening stable supply of the latest-generation “FUJIFILM LTO Ultrium10”

VALHALLA, N.Y.--(BUSINESS WIRE)--FUJIFILM Corporation will 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*¹. 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 utilized 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 “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*² for use in magnetic tape. In 2025, the company launched the latest-generation “FUJIFILM LTO Ultrium10,” which uses proprietary “fine hybrid magnetic particles”*³ combining technologies for BaFe and Strontium Ferrite (SrFe) magnetic particles*⁴. Through such technological innovation, Fujifilm has led advances in magnetic tape capacity and currently holds the top global share of the magnetic tape market*⁵.

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.

Fujifilm will continue to support the long-term storage of growing volumes of data accompanying the spread of generative AI and cloud services through higher-capacity magnetic tape and stable supply, thereby contributing to the realization of a sustainable digital society.

About Fujifilm

FUJIFILM North America Corporation, a marketing subsidiary of FUJIFILM Holdings America Corporation, consists of five operating divisions. The Imaging Division provides consumer and commercial photographic products and services, including silver halide consumables; inkjet consumables; digital printing equipment, along with service and support; personalized photo products fulfillment; film; one-time-use cameras; and the popular instax™ line of instant cameras, smartphone printers, instant film, and accessories. The Electronic Imaging Division markets its GFX System and X Series lines of mirrorless digital cameras, lenses, and accessories to provide a variety of content creation solutions for both still and moving imagery. The Optical Devices Division provides optical lenses for the broadcast, cinematography, closed circuit television, videography, and industrial markets, and also markets binoculars and other optical imaging solutions. The Business Innovation Division offers a full lineup of digital print and toner technologies focused on enabling the digital transformation of businesses and print shops with its offerings of multifunction printers, digital inkjet presses, production toner printers, software, and more. The Industrial Products Division delivers new products derived from Fujifilm technologies including data storage tape products, including OEM and FUJIFILM Ultrium LTO cartridges, desalination solutions, microfilters and gas separation membranes.

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FUJIFILM Corporation is a subsidiary of FUJIFILM Holdings Corporation. FUJIFILM Holdings Corporation, headquartered in Tokyo, leverages its depth of knowledge and proprietary core technologies to deliver innovative products and services across the globe through the four key business segments of healthcare, electronics, business innovation, and imaging with over 70,000 employees. Guided and united by our Group Purpose of “giving our world more smiles,” we address social challenges and create a positive impact on society through our products, services, and business operations. Under its medium-term management plan, VISION2030, which ends in FY2030, we aspire to continue our evolution into a company that creates value and smiles for various stakeholders as a collection of global leading businesses and achieve a global revenue of 4 trillion yen (29 billion USD at an exchange rate of 140 JPY/USD). For more information, please visit: www.fujifilmholdings.com.

For further details about our commitment to sustainability and Fujifilm’s Sustainable Value Plan 2030, click here.

*1 Based on shipment capacity, compared with fiscal year 2025.

*2 A proprietary magnetic material that Fujifilm was the first in the world to commercialize as a material for magnetic tape. By enabling high-density recording, it has served as a core technology supporting higher-capacity data storage magnetic tape and market expansion.

*3 A proprietary magnetic material developed by Fujifilm by combining nanoparticle design technologies used for Barium Ferrite and Strontium Ferrite magnetic particles. Further reduction in particle size and enhanced magnetic properties enable high-density recording.

*4 A proprietary magnetic material developed by Fujifilm to enable further increases in the capacity of data storage magnetic tape. It has extremely high magnetic properties and can maintain stable, high performance even when made into finer particles.

*5 Producer share, according to Fujifilm.

FUJIFILM-US-Electronic-Materials