Fujikura has outlined plans to capitalize on growing demand for AI optical interconnects while investing up to ¥300 billion in Japan and the U.S. It also announced the construction of a new plant and the establishment of a U.S. subsidiary alongside its June earnings forecast revision.
On 18 June, Fujikura revised its earnings forecast and projected improved profitability, citing unexpected orders for optical components from hyperscalers, higher selling prices and a reduced impact from hydrogen shortages. The company said demand for optical interconnects in AI data centers is expected to further deepen its growth trajectory.
For the fiscal year ended March 2026, revenue was ¥1.1824 trillion, operating profit was ¥188.7 billion and net profit was ¥157.2 billion, all at record-high levels. Its initial forecast for the fiscal year ending March 2027 was revenue of ¥1.243 trillion and operating profit of ¥211.0 billion, but the company announced an upward revision in June. The stability of orders and the sustainability of volume, pricing and product mix will be key areas of focus.
Fujikura announced plans to invest up to ¥300 billion in Japan and the U.S. combined, expanding production capacity for optical fiber and SWR/WTC to as much as three times current levels. In May, it decided to build a new plant costing up to ¥40 billion at its Sakura facility and establish a U.S. subsidiary. The company is moving to strengthen vertical integration covering preforms, fiber drawing, ultra-high-density cables and optical components.
Key issues include the cycle in AI capital investment, reliance on specific hyperscalers, securing hydrogen and raw materials during production expansion, and the ramp-up and yield rates of new equipment. Other points of interest include whether demand translates into actual operations, maintenance of selling-price discipline and the impact on free cash flow.