Against a backdrop of growing demand related to photonic-electronic convergence, Dexerials and Seikoh Giken are strengthening their growth strategies. Dexerials has raised its sales target for the photonics business, while Seikoh Giken is expanding production capacity.
Dexerials is positioning its photonics business, centered on optical semiconductors, as a growth pillar and will capture growing demand from data centers. In May 2026, the company revised its medium-term management plan upward, raising its sales target for the final year to ¥164 billion and substantially increasing the target for its photonics business from the previous ¥15 billion to ¥32.5 billion. Its shareholder return policy calls for a 40% payout ratio, DOE of 7% or more and a 60% total payout ratio. The company also outlined plans to bring a new production line at its Tome site into operation in the second half of 2026.
Seikoh Giken is responding to growing AI-related demand from data centers, centered on polishing machines for optical-fiber connections. In the fiscal year ended March 2026, sales surged to approximately ¥30.1 billion and operating profit to approximately ¥7.7 billion, achieving its medium-term management targets one year ahead of schedule. Optical products account for approximately two-thirds of sales, and growing demand for optical connections is driving earnings. The company is also expanding production capacity, including for components supplied to North America, and has announced a policy of increasing Intelli-Cross Pro production to five times the current level by around October 2026.