Key facts
- Fujikura is significantly increasing investment in fiber-optic cable production.
- Demand is driven by AI data centers requiring more fiber-optic cable.
- CEO Naoki Okada expressed confidence in exceeding company forecasts.
- Fujikura plans to triple optical fiber and cable output.
- The company will invest up to 300 billion yen ($1.9 billion) in new and existing facilities in Japan and the U.S.
- Fujikura is able to raise prices on its high-value products.
Japanese wire maker Fujikura is making substantial investments in fiber-optic cable production, driven by a surge in demand from AI data centers. The company's chief executive, Naoki Okada, believes Fujikura can surpass its own forecasts due to this booming market, a significant expansion plan, and increased pricing power.
Okada stated that Fujikura is supplying nearly all major U.S. hyperscalers and can manage tight manufacturing capacity by increasing prices for its high-value products, thereby sustaining margins. This strategic pricing power is complemented by a large-scale expansion initiative.
Fujikura intends to triple its optical fiber and cable output through an investment of up to 300 billion yen (approximately $1.9 billion) across its facilities in Japan and the United States. The company has also outlined a broader three-year management plan, aiming for 1.6 trillion yen in sales and 315 billion yen in operating profit by fiscal 2028. This spending will cover not only AI-related cable capacity but also next-generation energy businesses.
Recent disclosures indicate concrete steps in this expansion, including plans for a new factory at Sakura Works in Chiba Prefecture, with an estimated investment of about 45 billion yen, expected to begin operations in fiscal 2029. Industry analysis points to tight supply for specialized ribbon cable equipment, with lead times exceeding a year, positioning Fujikura to benefit from market shortages as it scales up capacity.