JX Metals is investing ¥120 billion to increase production of semiconductor materials used in optical communication up to 10× by 2030, responding to surging data-center power demand driven by AI adoption.

What happened: JX Metals will invest a total of ¥120 billion across two sites in Ibaraki Prefecture to expand production capacity of indium phosphide substrates (semiconductor materials for optical communication) up to 10× by fiscal 2030.

Why it matters: Data centers are consuming rapidly more electricity as AI spreads. Optical communication—replacing electrical data processing with light-based transmission—can reduce that power consumption, and major US tech companies are seeking reliable suppliers. JX Metals' expansion aims to capture this demand.

What to watch: The company is targeting fiscal 2030 as the completion date for the ¥120 billion investment program across both Ibaraki sites.