Notice Regarding Capital Investment (Acquisition of Fixed Assets) for the Production of Heat Dissipation and Cooling Products for Data Centers | Furukawa Electric Co.,Ltd. (5801) timely disclosure

Worth reading

28Immaterial

0–100. This measures how worthwhile something is to read, not how good or bad the company is.

Direction

Improvement

Direction inferred from the company’s description.

Scale

550

Hundreds of millions of yen

Wording

Conditional

How definitive the wording is.

This transaction

Capital investment (acquisition of fixed assets)

Execution Date / Effective DateScheduled start of mass production: air-cooled heat sinks in July 2026 (FTL, FAZ); water-cooling modules in January 2027 (FTL) and January 2028 (FFT)

Consideration and expenses

Acquisition priceApproximately ¥55 billion (water-cooling modules: approximately ¥51 billion; air-cooled heat sinks: approximately ¥4 billion)

Impact on Business Performance

The impact of this investment on consolidated results for the fiscal year ending March 2026 is expected to be immaterial. From fiscal 2026 onward, the investment is expected to contribute to higher sales as mass production begins at each location. Including the contribution from previously announced production capacity expansions, the company plans water-cooling module sales of at least ¥100 billion in fiscal 2027 and ¥400 billion in fiscal 2030.

This transaction
Item	Details
Transaction name	Capital investment (acquisition of fixed assets)
Acquisition price	Approximately ¥55 billion (water-cooling modules: approximately ¥51 billion; air-cooled heat sinks: approximately ¥4 billion)
Impact on Business Performance	The impact of this investment on consolidated results for the fiscal year ending March 2026 is expected to be immaterial. From fiscal 2026 onward, the investment is expected to contribute to higher sales as mass production begins at each location. Including the contribution from previously announced production capacity expansions, the company plans water-cooling module sales of at least ¥100 billion in fiscal 2027 and ¥400 billion in fiscal 2030.
Execution Date / Effective Date	Scheduled start of mass production: air-cooled heat sinks in July 2026 (FTL, FAZ); water-cooling modules in January 2027 (FTL) and January 2028 (FFT)

Items this document does not state (28)

Counterparty nameName of the Subject CompanyBusiness Description of the Subject CompanyLocation of the Subject CompanyCapital Stock of the Subject CompanyDate of Establishment of the Subject CompanyNet Sales of the Subject CompanyOperating Profit of the Subject CompanyNet Income of the Subject CompanyNet Assets of the Subject CompanyExpenses other than the acquisition priceType of ConsiderationMerger ratio/share exchange ratioTender offer priceMinimum number of shares to be purchasedTender offer periodNumber of shares acquiredVoting rights ownership percentageFunding arrangementsGoodwill amountAmount of extraordinary income (loss)Date of board resolutionContract DateValuation methodologyIndependent valuation institutionSpecial CommitteeConditions Precedent to ExecutionManagement structure after acquisition

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Demand for high-performance heat sinks is increasing against the backdrop of growth in the generative AI market and the higher heat generation of data centers. Water cooling provides high cooling performance, and demand for data center applications is expected to grow substantially going forward. The company will therefore increase production capacity to meet this demand.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.

Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.

Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.