JX Advanced Metals AI Data Center Materials: Third Production Boost This Year

It's the third time this fiscal year. Japan's JX Advanced Metals is ramping up its production capacity for optical communication materials to keep pace with the insatiable hunger of AI data centers.

JX Advanced Metals AI Data Center Materials: The Indium Phosphide Surge

According to Nikkei, JX Advanced Metals plans to increase production of its Indium phosphide (InP) wafers. These specialized materials are essential for devices that convert light signals into electrical signals within high-speed data networks. As AI workloads grow more complex, the speed of data transfer between servers has become a critical bottleneck, driving massive demand for advanced optical materials.

Arizona Expansion and the Japanese Material Boom

The company's Arizona plant in the U.S. is a top candidate for this production expansion. This move aligns with global efforts to diversify supply chains and cater directly to major American tech giants. JX isn't alone; peers like Asahi Kasei and Mitsubishi Electric have also announced plans to double or even triple their output of AI-related hardware and materials, marking a record-breaking profit era for corporate Japan.