Fujifilm to invest $63M to raise data tape output fivefold

In short: Fujifilm says it will invest about 10 billion yen, roughly $63 million, to increase production of magnetic data tapes by five times.

What happened

Fujifilm announced Thursday that it plans to expand its ability to make magnetic tape used for storing computer data. The company said it will raise production capacity fivefold compared with its fiscal year 2025 level.

The investment will go to Fujifilm’s Kanagawa Factory, Odawara site in Japan. Fujifilm said the project will run from fiscal years 2026 through 2028 and will cover factory expansion and added staff. The company described it as its largest investment so far in facilities dedicated to LTO tape.

LTO stands for Linear Tape Open, a common standard for modern storage tape used by large companies. Fujifilm said it will mainly produce its latest generation, called “FUJIFILM LTO Ultrium10.” While most people stopped using tape for music and video years ago, many large data centers still use tape for backups.

Fujifilm links the growing demand to generative AI, which is driving up how much data needs to be saved. The company also said major cloud and data center operators like tape because it can hold large amounts of data at a relatively low cost.

Why it matters

Tape has one feature that is simple but important for security, it can be taken offline. A tape cartridge can be disconnected and stored elsewhere, like putting a spare copy of your files in a safe. Fujifilm said this “air-gap” approach can help protect data from ransomware, which is when criminals lock up files and demand payment.

Source: Arstechnica