Furukawa Electric (5801) investor relations material

Market overview and growth drivers

• Global data traffic and data center demand are expected to rise, driving medium- to long-term growth in related markets.

• Semiconductor, memory, and optical components markets are projected to expand significantly through 2030.

• Increasing adoption of AI and generative AI is accelerating demand for advanced infrastructure and cooling solutions.

• Key profit opportunities include solving social issues like carbon neutrality and leveraging strong technological capabilities.

Strategic direction and policies

• Focus on developing high-performance, differentiated products for data centers and AI-related markets.

• Policies emphasize rapid response to market changes, environmental sustainability, and expanding into new fields.

• Large-scale investments planned in thermal management and FITEL products to support growth.

• Business strategy targets new markets and customers, with a structure for quick adaptation.

Business division initiatives

• AT & Functional Plastics: Expand high-value products for advanced semiconductor processes and data center infrastructure.

• Thermal Management: Launch new plants for water- and air-cooling, with mass production starting 2026–2028.

• Memory Disk: Meet demand for thinner HDD substrates as disk counts per drive increase.

• Copper Foil: Shift portfolio to high-value HVLP copper foil for AI server and high-frequency applications.

• FITEL Products: Expand supply of DFB laser chips and pump light sources for intra/inter data center use.

• Photonics-Electronics: Develop modulators and transceivers to enhance data center communications.