TOKYO — Fujifilm will invest approximately ¥10 billion ($63 million) to increase its magnetic data-storage tape production capacity fivefold as artificial intelligence drives demand for large, durable archives. The Japanese manufacturer announced the plan October 29, targeting its Kanagawa Factory’s Odawara site.

According to Fujifilm’s announcement, the expansion will run from fiscal 2026 through fiscal 2028, adding manufacturing equipment and workers. The fivefold capacity target is measured against fiscal 2025 shipments, not current output.

Fujifilm explains how Linear Tape-Open technology stores and protects enterprise data.

The Hardware Behind the Expansion

Most additional manufacturing capacity will support LTO Ultrium 10 cartridges. The newest 40 TB model holds 40 terabytes of uncompressed data, or as much as 100 TB with the specified 2.5:1 compression ratio. Compression results depend on the data stored.

Fujifilm combines barium-ferrite and strontium-ferrite magnetic-particle technologies to increase recording density. Its investment is the largest the company says it has made specifically in dedicated LTO production facilities.

Fujifilm’s planned production-capacity index compares its fiscal 2025 baseline with its fivefold expansion target; completion is not yet confirmed.

Why Data Centers Still Use Tape

Modern tape libraries use robotic mechanisms to load removable cartridges. Unlike immediately accessible SSDs or hard drives, tape is designed primarily for long-term backup and less frequently retrieved data. Keeping cartridges physically offline can provide another layer of protection against ransomware.

That distinction matters as cloud and AI operators retain training datasets, logs, backups and regulatory records. BitcoinVersus.Tech previously examined the evolution of computer storage, Seagate’s high-capacity hard-drive business and secure handling of retired storage media.

IBM demonstrates the robotic tape-handling system inside its TS4500 library.

What Comes Next

Fujifilm has not disclosed the absolute number of cartridges it expects to produce after expansion. Its announcement is a manufacturing commitment, not proof the planned capacity is already online.

The next measurable developments will be equipment installation, hiring and output growth at Odawara. For data-center operators, the central question is whether added tape supply can keep pace with expanding AI archives without sacrificing cost or long-term recoverability.

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