The Tokyo-based company plans to deploy 120 billion yen over the next four years to scale up production of indium phosphide substrates. This crystal material serves as a critical component in optical transceivers, the hardware responsible for high-speed data transmission within AI infrastructure. As processing demands intensify, the company anticipates a surge in the need for optical communication equipment.
In section Market Quotes
JX Advanced Metals Rallies on AI-Driven Expansion Plan
Investors pushed JX Advanced Metals to its daily trading limit on Tuesday, sending shares up 19% to 4,466 yen. The surge follows the company's announcement of a massive $748 million capital expenditure aimed at cornering the market for specialized materials powering the next generation of artificial intelligence data centers.
By scaling operations, JX Advanced Metals intends to boost its substrate manufacturing capacity by seven to ten times. Management views this expansion not merely as a capacity upgrade, but as a strategic pivot to establish indium phosphide as a primary revenue driver for the firm's long-term portfolio.
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