Notice Regarding Capital Investment for Production of Heat Dissipation and Cooling Products for Data Centers (Acquisition of Fixed Assets)

Overview of Capital Investment

Furukawa Electric Co., Ltd. has decided on capital investment of approximately 55 billion yen to expand production capacity for heat dissipation and cooling products for data centers, specifically liquid cooling modules and air-cooled heat sinks. The main investment locations are factories in the Philippines (FTL), Thailand (FFT), and China (FAZ), allocating about 51 billion yen for liquid cooling modules and about 4 billion yen for air-cooled heat sinks. This aims to meet the increasing demand for high-performance heat sinks accompanying growth in the AI market.

Outlook and Planned Start of Mass Production

While the impact of this investment on consolidated results for the fiscal year ending March 2026 is expected to be minimal, mass production starting at each site from FY2026 onward is anticipated to contribute to increased sales. Mass production of air-cooled heat sinks is scheduled to commence in July 2026, with liquid cooling modules starting in January 2027 and January 2028. Sales from liquid cooling modules are targeted to exceed 100 billion yen in FY2027 and reach 400 billion yen by FY2030.