Capturing the Expanding Light Demand in the Generative AI Era, Takachiho Trading Launches Optical Solutions Business

Takachiho Trading Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo; President and CEO: Nobunobu Ide; Securities Code: 2676; hereinafter referred to as "the Company") will begin handling optical-related products and develop them as an Optical Solutions business, driven by the expansion of data center demand accompanying the rapid proliferation of generative AI.

[Background for Launching the Optical Solutions Business]

With the advancement of generative AI, there is an explosive increase in data processing volume and a demand for optimized power efficiency. In this context, the importance of optical technologies that support high-speed, high-capacity, and low-power communication is rapidly growing in data centers and next-generation communication infrastructure.

Particularly in areas where traditional electrical wiring is becoming difficult to manage, optical components are positioned as core technologies that influence system performance. Furthermore, in addition to the advancement of next-generation communication networks represented by IOWN® (Note 1), the application of optical technologies is expanding beyond communication uses into industrial fields and sensing areas, evolving optical technology into a foundational technology supporting the entire social infrastructure.

In light of these market environmental changes, the Company will begin handling next-generation optical-related products, aiming to expand its product lineup and strengthen its proposal capabilities.

Note 1: IOWN® (Innovative Optical and Wireless Network) is a next-generation network concept proposed by the NTT Group, aiming to realize a communication infrastructure that is high-speed, high-capacity, low-latency, and low-power consumption through innovative technologies centered on optics.

"IOWN®" is a trademark or registered trademark of NTT Corporation.

Diagram: Overview of the Optical Solutions Business

[Overview of the Optical Solutions Business]

In this business, we will focus on proposing solutions for data centers, communication infrastructure, industrial equipment, and sensing fields, primarily centered on optical communication-related materials, optical connection components, and optical module-related products. Furthermore, we will strengthen our proposals for total solutions that combine optical-related products with semiconductors and electronic components, leveraging the customer base and technical support capabilities cultivated in our semiconductor and electronic components business.

Additionally, looking ahead to next-generation technology trends such as Co-Packaged Optics (CPO) (Note 2), which is rapidly gaining interest in the data center domain, we will contribute to solving customer challenges such as power consumption reduction, increased bandwidth, and high-density mounting. By engaging with customers from the initial design stages, providing product selection, technical proposals, and technical support tailored to their applications and specifications, we aim to create higher value-added business opportunities.

Note 2: Co-Packaged Optics (CPO) is a technology that aims to increase communication speed and reduce power consumption by mounting semiconductor chips and optical communication components in close proximity.

[Specific Growth Strategies]

We will develop business across the three markets of communication, industry, and sensing to capture market growth from multiple perspectives.

We aim to establish competitive superiority by developing a differentiated product lineup through the discovery of new suppliers and next-generation optical components.

We will promote a shift from selling individual components to high value-added areas such as design proposals, system proposals, maintenance, and services.

[Future Developments]

The Company will foster this business as a growth business aiming for sales of several billion yen in the medium to long term. We will also simultaneously promote a transition to a highly profitable business structure while reliably capturing the tailwind of market expansion.

As a business model for achieving growth, we will evolve beyond traditional component sales to a solution-providing business that delves into solving customer issues. Specifically, in addition to technical proposals and optimal component selection support from the design stage, we will maximize added value by proposing systems that combine multiple products.

In the future, we will aim to build a high value-added business model originating from optical-related products, considering strengthening proposals in the data center-related field and expanding into the maintenance and service areas.

Through these initiatives, the Company will contribute to customer value creation and the realization of a sustainable society through cutting-edge optical technology.

[Inquiries Regarding the Optical Solutions Business]

https://www.takachiho-kk.co.jp/contact/semicon/

About Takachiho Trading Co., Ltd. (Website: https://corp.takachiho-kk.co.jp)

Founded in 1952, Takachiho Trading is a technology trading company with the purpose of "Creating 'New Needs' in Space through the Power of Technology and Kindness to People." In the business domains of Business Security (product surveillance, access control, cybersecurity, etc.) and Electromechanics (semiconductors, mechanical components), we provide one-stop services from consulting to development, design, installation, and maintenance.