Sharp drop in orders for polarizers for optical communications and tight supply-demand conditions for Faraday rotators
First written in FY2026-H1. 3 of 4 entries say "Mitigated", first in 2026-06-04. Latest entry: 2026-08-07.
No other company in this theme has enough history to compare yet.
- 2026-08-07MitigatedEarnings
「Orders for glass polarizers used in optical transceivers and other products were strong, partly because investment in data centers remained active.」
Compared with the sharp decline in glass polarizer orders reported in the previous period, the Company reported strong orders in the current quarter, indicating that the risk was moving toward mitigation. - FY2026MitigatedAnnual report
「Orders for polarizers from the Company declined sharply as a result, but both orders and production volumes recovered from November 2025.」
Orders for polarizers, which had fallen sharply because of tight supply and demand for Faraday rotators, recovered from November 2025, as did order intake and production volumes. However, for the full year, the segment including polarizers continued to report lower revenue and a substantial decline in profit. - 2026-06-04MitigatedGeneral Meetings of Shareholders
「Orders for polarizers from the Company declined sharply as a result, but both orders and production volumes recovered from November 2025.」
The Company indicated a recovery in polarizer orders and production volumes following the sharp decline caused by tight supply and demand for Faraday rotators. - FY2026-H1MaterialisedAnnual report
「Our polarizers are used by customers in optical communications in combination with Faraday rotators. As investment in data centers increased, supply and demand for Faraday rotators tightened, causing orders for our polarizers to fall sharply. Sales for the current interim consolidated accounting period were ¥471 million, down ¥169 million, or 26.5%, year on year. The segment loss, or operating loss, was ¥85 million, a decrease of ¥100 million from the previous year, when the segment reported operating profit of ¥15 million. Polarizer sales declined.」
The company states that increased investment in data centers caused supply and demand for Faraday rotators to tighten, resulting in a sharp decline in orders for its polarizers. The Functional Thin Film and Glass segment, which includes polarizers, reported a 26.5% decline in revenue, while operating results swung from a ¥15 million profit to an ¥85 million loss, indicating that the risk materialized as an actual deterioration in performance.