Fujifilm plans to boost production of magnetic storage tape by as much as five times, driven by soaring demand from AI data centers. The Japanese company will spend 10 billion yen ($63.3 million) to expand capacity at its Odawara plant, its largest investment in tape-based storage in around 20 years.
The expansion, which will run through Fujifilm's fiscal year 2028, will allow the company to produce advanced tapes with capacities of up to 100 TB each, according to Nikkei Asia.
Fujifilm first began work on magnetic tape technology in 1954, when it was used in television broadcasting equipment. Today, tape is a go-to storage option for long-term backup in data centers. It can cost as little as one-quarter as much as hard disks and even less than solid-state drives; research has also found it is less polluting than hard disks and SSDs.
The LTO roadmap allows cartridges to hold as much as 365 TB, while SSDs top out at around 256 TB and cost considerably more.
Fujifilm is not the only storage company looking to take advantage of the AI data center boom. Toshiba earlier this month announced plans to double hard disk production capacity amid shortages; Seagate and WD are also working toward higher capacities. Kioxia and SanDisk in August detailed 332-layer 3D NAND flash, and the pair hope to bring higher storage capacities to SSDs for data center use.
The demand for AI data center storage is at the heart of a global shortage that shows little sign of improving anytime soon. Scarcity has seen prices skyrocket, while manufacturers have chosen to shift resources away from consumer products toward more lucrative enterprise markets.
Analysis
Why This Matters
- Tape storage, long considered obsolete, is undergoing a revival as AI data centers need vast, cheap, energy-efficient archiving for rarely accessed 'cold data.'
- Fujifilm's fivefold capacity expansion could help ease a global storage shortage that has driven up prices for both enterprise and consumer hardware.
- The investment signals that tape will remain a critical part of the storage hierarchy for the foreseeable future, competing directly with HDDs and SSDs on cost and environmental impact.
Background
Magnetic tape was first commercialised in the 1950s and later became the standard for video broadcasting and large-scale data backup. Although slower than hard disks and solid-state drives, tape is extremely durable and costs as little as a quarter of the price of HDD storage, making it ideal for archiving data that must be preserved but is accessed infrequently. The LTO consortium, which sets tape format standards, has a roadmap extending to 365 TB per cartridge.
Key Perspectives
Fujifilm: says the 10 billion yen investment will boost production capacity up to fivefold, enabling it to make tapes that hold up to 100 TB each. The company frames the move as its most significant tape investment in two decades.
Toshiba, Seagate, WD, Kioxia, SanDisk: are also expanding production or developing higher-capacity storage to meet AI demand. Toshiba announced plans to double HDD output, while the flash makers are pursuing denser NAND chips.
What to Watch
- Whether the Fujifilm expansion comes online on schedule by fiscal 2028, and whether rivals announce similar tape capacity increases.
- How quickly the AI data center storage shortage eases, or worsens, as more hyperscale facilities are built.
- Whether the industry advances LTO tape to its full 365 TB potential, and at what cost per terabyte.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedFujifilm plans to increase magnetic tape production by as much as five times amid AI storage demand.Latest from Tom's Hardware: “Fujifilm plans to boost production of magnetic tape by as much as 5x as it works to keep up with demand for the data storage medium that has seen a jump in popularity amid ongoing global AI data center buildouts.”
- SupportedFujifilm will spend 10 billion yen ($63.3 million) to expand capacity at its Odawara plant.Latest from Tom's Hardware: “The Japanese firm will spend 10 billion yen ($63.3 million) to increase capacity at its Odawara plant throughout its fiscal year 2028.”
- SupportedThe expansion is Fujifilm's largest investment in tape-based storage in around 20 years.Latest from Tom's Hardware: “The expansion of production capacity will mark the company's largest investment in tape-based storage in around 20 years.”
- SupportedThe expansion will run through Fujifilm's fiscal year 2028.Latest from Tom's Hardware: “The Japanese firm will spend 10 billion yen ($63.3 million) to increase capacity at its Odawara plant throughout its fiscal year 2028.”
- SupportedThe expansion will allow Fujifilm to produce tapes with capacities of up to 100 TB each, according to Nikkei Asia.Latest from Tom's Hardware: “The move will enable it to produce more advanced tapes with capacities of up to 100TB each, Nikkei Asia reports.”
- SupportedFujifilm began working on magnetic tape technology in 1954, when it was used for television broadcasting equipment.Latest from Tom's Hardware: “Fujifilm first began working on magnetic tape technology back in 1954 when it was used for television broadcasting equipment.”
- SupportedMagnetic tape storage can cost as little as one-quarter the cost of hard disks and less than SSDs.Latest from Tom's Hardware: “Magnetic tape storage can cost as little as one-quarter that of hard disks, and even less when compared to faster SSDs.”
- SupportedResearch has found tape storage is less polluting than hard disks and SSDs.Latest from Tom's Hardware: “Tape storage isn't just cheaper, either, with research showing that it's also less polluting than hard disks and SSDs.”
- SupportedThe LTO roadmap allows up to 365 TB per cartridge, while SSDs top out at around 256 TB and cost considerably more.Latest from Tom's Hardware: “While Fujifilm will produce 100TB tapes, the Linear Tape-Open (LTO) roadmap allows for considerably larger capacities, all the way to 365TB per cartridge. By comparison, SSDs top out at around 256TB and cost considerably more.”
- SupportedToshiba announced plans earlier this month to double hard disk production capacity amid shortages.Latest from Tom's Hardware: “Toshiba announced earlier this month its plans to double hard disk production capacity amid shortages”
- SupportedKioxia and SanDisk detailed 332-layer 3D NAND flash in August and hope to increase SSD storage capacities for data center use.Latest from Tom's Hardware: “Kioxia and SanDisk are also getting in on the act after detailing 332-layer 3D NAND flash in August. The pair hope to bring higher storage capacities to SSDs for data center use.”
- SupportedHigh demand for AI data center storage is at the heart of a global shortage, with prices rising sharply and manufacturers shifting resources from consumer products to enterprise markets.Latest from Tom's Hardware: “The demand for AI data center storage is so high that it's at the heart of a global shortage that shows little sign of improving anytime soon. Scarcity has seen prices skyrocket, while manufacturers have chosen to divert resources away from consumer-focused products, instead focusing on the more lucrative enterprise market.”