News: Suppliers
17 June 2026
JX expanding InP substrate production capacity again to meet data-center optical communications demand
After announcing capacity investments last July and October and this February, Tokyo-based JX Advanced Metals Corp is to invest up to ¥120bn more over the next four years to further expand its production capacity of indium phosphide (InP) substrates, used in optical communications transceivers that support the large-volume data transmission required by the advancement of AI.
Since demand for optical communication equipment is growing at a pace significantly exceeding previous expectations, JX has hence been steadily increasing its InP substrate production capacity. Through ongoing dialog with customers, it continues to receive substantial requests for increased supply associated with their capacity expansion plans. As a result, JX has strengthened its view that demand for these products will expand further beyond previous expectations.
JX has hence decided to undertake a large-scale investment — the largest ever for this product — to support the stable supply of InP substrates, respond to customer demand, and contribute to the growth of the optical communications infrastructure market. Specifically, in addition to the Isohara Works in Kitaibaraki City, Ibaraki Prefecture, where production has been carried out to date, JX will boost its production footprint by establishing additional capacity in Hitachinaka City, Ibaraki Prefecture, with plans to increase production capacity by 7-10 times. In parallel, JX will discuss price revisions with customers, with the aim of establishing a stable supply framework. The firm aims to develop InP substrates into a pillar of revenue alongside its flagship semiconductor sputtering target.
JX plans to fund this capital investment using a proportion of proceeds from May’s issue of zero-coupon convertible bonds with stock acquisition rights (due 2029 and 2031, respectively), net of the amount allocated for the share tender offer.
Going forward, JX says that it will continue to promote initiatives aimed at transforming itself into a technology-based company, as outlined in the JX Advanced Metals Group Long-Term Vision 2040.
JX making further investment to increase InP substrate production
