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Fujifilm to invest ~$63 million to quintuple tape production as AI drives archiving demand

Original title: Fujifilm to boost tape production 5x as AI fuels archiving demand

Fujifilm announced Thursday it will invest roughly 10 billion yen (about $63 million) to quintuple its magnetic tape production capacity relative to fiscal year 2025 levels, citing exponential growth in global data needs driven by generative AI. The investment in its Kanagawa Factory, Odawara site will run through fiscal years 2026 to 2028 to fund manufacturing expansion and additional personnel, primarily to produce the latest-generation FUJIFILM LTO Ultrium10 tape, and marks Fujifilm's largest investment to date in dedicated LTO tape facilities.

Why it matters

The article gives concrete figures, the plant and product line involved, useful for gauging how generative AI storage demand spills over into the tape industry.

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Original article

In an announcement released Thursday, Fujifilm said it will invest roughly 10 billion yen (about $63 million) to increase its production capacity fivefold for an unlikely beneficiary of the AI era: magnetic tape.

Fujifilm attributes the surge in archiving demand to the spread of generative AI, which the company remarked is producing "exponential growth" in data needs worldwide. The 5x increase in production capacity will be measured against fiscal year 2025 production levels.

The investment in Fujifilm's Kanagawa Factory, Odawara site will make it "the largest investment Fujifilm has made to date in dedicated LTO tape facilities." The project will run from fiscal years 2026 through 2028 to fund manufacturing expansion and additional personnel, primarily to produce the latest-generation "FUJIFILM LTO Ultrium10" tape.

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