Fujikura to invest JPY ¥300bn to triple fibre output

Fujikura has approved a policy to expand production capacity for optical fibre and its SWR and WTC optical fibre cables through a capital investment programme of up to JPY 300 billion in Japan and the United States.

The Tokyo-listed group's Board of Directors approved the approach at a meeting on Thursday. Fujikura has not provided a detailed breakdown of spending by geography, site, or timing, and said it would proceed in phases while monitoring market trends.

The policy aims to raise output capacity at its manufacturing locations in Japan and the US to about three times current levels. The plan is linked to a new factory under construction at its Sakura plant in Chiba prefecture.

Fujikura makes optical fibre and optical fibre cables used in data centre networks and broader telecoms infrastructure. Demand has risen in recent months as operators and cloud providers build facilities designed for large-scale artificial intelligence workloads.

US focus

Fujikura positioned the capacity expansion as part of US-Japan economic cooperation and strategic investments. It said it has been recognised as a supplier of optical fibre cables for strengthening AI infrastructure in the US, in connection with a memorandum of understanding between the two governments.

The company also cited a framework agreement signed with the US Department of Commerce on 28 October 2025, but did not disclose further details.

Fujikura described the investment as a response to growing demand for optical fibre cables in the AI data centre market, and said expanded output would support the build-out of AI infrastructure in the US.

Market observers have linked the move to rapid data centre construction and a shortage of specialist cabling that supports high-density fibre deployment. Optical cabling is part of the physical network layer inside and between data halls, linking switches, storage, and compute clusters that increasingly rely on high-bandwidth interconnects.

Products and plants

The announcement covers optical fibre and Fujikura's SWR and WTC optical fibre cables. SWR and WTC stand for Spider Web Ribbon and Wrapping Tube Cable.

The products use Fujikura designs for high-density optical fibre distribution, packing more fibres into a given cross-section. That can reduce the space and handling required during installation compared with lower-count cable types.

The new factory at the Sakura site is already under construction. Fujikura previously disclosed plans for a next-generation optical fibre and SWR factory there in August 2025.

Nikkei Asia reported that the proposed JPY 300 billion in spending is intended to triple combined capacity in Japan and the US. Details remain undecided, including the split between the two countries, specific locations, and the schedule, the publication said.

Financial impact

Fujikura said the policy would not change its consolidated earnings forecast for the fiscal year ending March 2026. It said it would disclose specific investment details in a timely manner if disclosure requirements arise.

The proposed investment would place Fujikura among Japanese industrial suppliers, increasing output to meet data centre-related demand in the US and other markets. Expansion spans not only cabling, but also connectors, insulating materials, and metal inputs used across the electronics supply chain.

Nikkei Asia also cited investment moves by other Japanese manufacturers, including Furukawa Electric in ultra-high-count optical cable production and Sumitomo Electric Industries in connector-related capacity. It said Asahi Kasei planned investment in an insulating material used in advanced semiconductor products, including graphics processing units, while JX Advanced Metals and Mitsui Kinzoku were increasing production of metal materials.

Fujikura has not quantified expected capacity gains in absolute terms or set a completion target across its sites. It has also not said whether the policy includes new greenfield factories beyond the Sakura site or expansions of existing US facilities.

Naoki Okada, President and CEO of Fujikura, has previously said the pace of data centre construction is influencing manufacturing plans. At an earnings briefing last month, he described a compressed build cycle and suggested that adding equipment alone might not be sufficient.

"We understand that a series of massive data centers are being built in a relatively short period of time," said Okada.

Fujikura said it would continue with phased investment and provide further disclosures as plans are finalised.