JX Advanced Metals Exponentially Increases InP Production Capacity for AI Data Centers

JX Advanced Metals has announced a massive capital expenditure plan of up to 120 billion yen over the next four years to significantly expand its production capacity of Indium Phosphide crystal substrates. Combined with previously announced investments, this move will increase the company's production capacity by 7 to 10 times compared to the fiscal year 2025 level. Indium Phosphide is a critical semiconductor material utilized in optical transceivers. As artificial intelligence technologies advance, the demand for high-capacity and high-speed data communication is surging globally, driving an unprecedented need for advanced optical components in data centers. Prior to this mega-investment, JX Advanced Metals had already sequentially announced expansion phases at its Isohara Plant, involving investments of approximately 1.5 billion yen, 3.3 billion yen, and 20 billion yen respectively. This latest initiative solidifies the company's leading position in the global semiconductor supply chain, ensuring a stable supply of next-generation optical communication materials to support the massive data infrastructure required by the AI revolution.