Key facts
- MinebeaMitsumi will invest 58 billion yen ($360 million) to expand precision bearing production.
- The expansion is driven by increasing demand for components in AI data centers.
- New facilities will be constructed in Cambodia and Thailand.
- Operations are expected to commence in fiscal year 2028.
- The company aims for a 60% increase in production efficiency through automation.
MinebeaMitsumi plans to invest 58 billion yen ($360 million) to expand its production of precision bearings, crucial components for cooling equipment and storage devices in artificial intelligence data centers. This strategic move acknowledges the expanding demand for electronic components driven by AI, moving beyond just semiconductors. The company will construct new facilities within existing manufacturing complexes in either Cambodia or Thailand, aiming to increase production efficiency by 60% through advanced automation. Construction is slated to begin by the end of 2024, with operations expected to commence in fiscal year 2028. MinebeaMitsumi anticipates a significant surge in sales from the AI server market, projecting a 100 billion yen increase over the next four years and a compound annual growth rate of 19% by fiscal year 2029. The company, a dominant player in miniature ball bearings and HDD pivot assemblies, views this expansion as solidifying its supply chain amidst forecasts of tripling data center power demand. MinebeaMitsumi also intends to showcase its AI-driven mechanical components, including those used in robotic hands, at CES 2026.