Hakusan Inc. to Invest 5 Billion Yen in New Factory to Meet Growing Global Demand

Hakusan Inc. Makes Strategic Investment in a New Factory

Hakusan Inc., a leading company in optical connector components based in Kanazawa, Ishikawa Prefecture, has announced a significant investment of approximately 5 billion yen into building a second factory in Kahoku City. This strategic move is aimed at addressing the exponential growth in investment for data centers due to the widespread adoption of generative AI and the expanding demand from global hyperscalers. The new facility is scheduled to commence operations in April 2028.

Background and Purpose of the Investment

The surge in the adoption of generative AI has prompted a rapid increase in investments in state-of-the-art AI data centers worldwide. This boom has created an urgent need for high-density optical communication networks capable of fast and low-latency processing of vast amounts of data. Consequently, there is a growing demand for next-generation ultra-small multi-core optical connector components.

In February of this year, Hakusan signed a multi-source agreement with US Conec and SANWA Technologies to stabilize the supply chain against this backdrop of robust demand. Furthermore, during the world-renowned optical communications conference, OFC 2026, held in the United States in March, Hakusan garnered considerable attention and anticipation from top-tier hyperscalers.

The investment of 5 billion yen in the construction of this new factory is a strategic initiative to fulfill the commitment to provide reliable and stable supplies to meet the insatiable demand from global hyperscalers. Moreover, it aims to expand the production scale by approximately 1.5 times compared to current facilities.

Overview of the New Factory and Production Products

The new factory will serve as a cutting-edge precision molding and manufacturing base that encompasses the advanced low-loss MT ferrule technology that Hakusan has been perfecting for over 35 years. It will be a key facility for producing TMT Ferrules, integral to the ultra-small multi-core optical connectors at the core of the collaboration between Hakusan and its partners. Additionally, headquarters functions are slated to be relocated from Kanazawa City to the new factory site, facilitating better operational efficiency.

Factory Details:

- Location: Kahoku City, Ishikawa Prefecture
- Investment Amount: Approximately 5 billion yen
- Commencement of Operations: Scheduled for April 2028
- Site Area: About 20,000 square meters
- Main Production Item: TMT Ferrules for next-generation ultra-small connectors

Strengthening Production Structure and Incremental Production Plans

Hakusan currently operates its Ishikawa Factory in Shika Town as the main production hub, ensuring stable production of multi-core optical connector components. This factory will continue its operations, leveraging the mass production technologies and quality management systems developed over the years to serve as a crucial base for stable supply to the global market.

In addition, prior to the full operation of the new factory scheduled for April 2028, Hakusan is also planning to utilize existing facilities for a certain scale of TMT Ferrule manufacturing to respond flexibly to the increasing demand.

Business Growth and Organizational Development

Hakusan is steadily growing both in terms of business scale and organizational capacity, capitalizing on its technological excellence and the expanding global market. Particularly, the optical-related business is experiencing substantial growth. In the past year, approximately 40 new employees have been hired to strengthen production, development, sales, and overall operations to meet increasing domestic and international demand. The company is also reinforcing its corporate foundation through a rise in the number of employees and the expansion of operational functions, laying the groundwork for sustainable growth.

Major Recruitment Drive in Ishikawa for Future Innovators

In line with the establishment of the second factory and the rapid business expansion, Hakusan plans to significantly enhance its recruitment efforts across various sectors, including manufacturing, technology development, marketing, sales, and administration, centered around Ishikawa Prefecture. While being an advanced manufacturer with a robust global market share, Hakusan aims to invigorate the local economy and create employment in the region.

Statement from Ryusei Kanahara, CMO of Hakusan:

"The multi-source agreement announced in February with US Conec and others confirms that our MT ferrule technology is essential for supporting the next-generation global standard. This investment of approximately 5 billion yen reflects our commitment to providing stable supplies to the global hyperscalers. We look forward to meeting passionate individuals who share our vision for creating the future of communication infrastructure from Kahoku City to the world!"

Company Overview

- Company Name: Hakusan Inc.
- Headquarters: 1F, Ishikawa Textile Hall, 2-2 Kuratsuki, Kanazawa, Ishikawa
- CEO: Tatsuya Yonekawa
- Number of Employees: 180 (as of April 2026)
- Business Scope: Manufacturing and sales of optical communication components, including multi-core optical connector parts such as MT Ferrules and TMT Ferrules.
- Website: https://hakusan-mfg.co.jp/