[Featured in NIKKEI] New factory to be established to increase production of optical connector components for data centers

Hakusan Inc. will establish a new factory in the Kanto region to meet the rapid increase in demand for optical fiber connector parts due to the spread of generative artificial intelligence (generative AI).
 
The company's specialty is the high-precision optical fiber connector component "MT Ferrule," which realizes extremely small errors (less than 1 micrometer) that directly affect communication speed, and is mainly used in data centers in North America and China. Hakusan 's president, Tatsuya Yonekawa, said, "The industry as a whole predicts that (demand for MT Ferrule) will grow until around 2026," and the company aims to strengthen its supply capacity in response to growing demand.

At the end of January 2025, 67% of Hakusan 's shares are scheduled to be transferred to Furukawa Electric Co., Ltd.
 
Reference article: Hakusan Inc., Ltd. announces transfer of 67% of its shares to Furukawa Electric Co., Ltd. 
 
This partnership will double the production capacity of the new factory and the existing Ishikawa Factory (Shika Town, Ishikawa Prefecture), strengthening the supply system to the global market. Furukawa Electric Co., Ltd., Ltd. President Hideya Moridaira said, "The acquisition of Hakusan will advance our global product development and respond to disaster risks," indicating his intention to expand sales of optical fiber products, mainly in the North American market.

Although the Ishikawa Factory was damaged in the Noto Peninsula earthquake in January 2024, the impact of this has led to increased awareness of Hakusan, a significant increase in the direct sales ratio, and improved profit margins. President Yonekawa stated, "This has given our global business partners an opportunity to learn about Hakusan which was previously unknown, and we have increased our direct transactions," expressing confidence in future growth.

The investment in the new factory is expected to be between 300 and 500 million JPY, and it is scheduled to start operations as early as spring 2025. For more details, please see NIKKEI website.
 
Reference: NIKKEI website (December 18, 2024)
"New factory in Ishikawa/ Hakusan, Kanto to increase production of optical components for data centers"