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.

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.