Nihon Kogaku Denko announced an investment of 100 billion yen to expand its optical fiber production capacity, with a target to double its output.

Furukawa Electric announced on Tuesday that it plans to invest 100 billion yen to double its existing capacity in response to the strong demand from hyperscale data centers. The company expects that the demand for high-quality optical fibers and cables will significantly increase in the medium to long term. At the time of making this investment decision, it confirmed that it has received procurement commitments from customers, including long-term purchasing agreements. The company anticipates that the new capacity will begin mass production in the second half of the fiscal year 2028. Therefore, this investment will have a limited impact on performance through the fiscal year ending March 2027. In addition to its optical fiber operations, Furukawa Electric is also expanding its offerings in data center cooling component products. The company is advancing related investments of 55 billion yen across multiple locations in Asia.