As demand for AI servers grows and attention focuses on Japanese companies' component supply capabilities, this article summarises how Japanese companies control key positions, particularly in passive components, along with specific developments and stock movements.
Investment in AI servers worldwide accelerated in 2026. According to TrendForce estimates, the combined investment of 9 major cloud providers is expected to exceed $886.7 billion, while AI server shipments are projected to increase by approximately 31% year on year. IDC data shows that the global server market reached a record $166.3 billion in April–June 2026, with GPU servers accounting for more than half. Against this backdrop, the importance of passive components supporting AI server power supplies is increasing.
Aluminium electrolytic capacitors, conductive polymer capacitors, separators and electrode foil are essential for stabilising the power supply of AI servers, and Japanese companies control the supply chains for key components. Nippon Chemi-Con, in particular, is the world's leading aluminium electrolytic capacitor supplier and has announced plans to increase AI server sales from ¥4.1 billion in the fiscal year ended March 2026 to approximately ¥27.6 billion in fiscal 2028. Nichicon is pursuing growth in the AI server market through a combination of long-form large aluminium electrolytic capacitors and conductive polymers. Its May 2026 earnings presentation projected sales to increase from approximately ¥5.2 billion in fiscal 2025 to approximately ¥30 billion in fiscal 2028.
Other developments include financing and risk factors. Nichicon announced plans to issue approximately ¥22 billion in euro-yen convertible bonds in September to fund increased production of long-form and hybrid products, and also conducted share buybacks. Meanwhile, a judgment of approximately ¥19.37 billion has been issued against a Singapore subsidiary, creating factors that could affect earnings, including the risk of an extraordinary loss and dilution. The government's designation of capacitors as specified critical materials is also attracting attention. Finally, the article explains, in ranking order, 20 stocks supporting the AI server supply chain, from finished capacitors to materials and related components.