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Japan to pitch high-speed optical networks as next big export to U.S.

Rey Alcaraz

Japan to pitch high-speed optical networks as next big export to U.S.

Japan is rolling out a government-backed initiative to introduce advanced light-based telecommunications technology to major U.S. tech companies. According to a report by Nikkei Asia, the East Asian nation’s Ministry of Internal Affairs and Communications plans to establish a demonstration facility in Silicon Valley this year, with Nippon Telegraph and Telephone (NTT) and Fujitsu among the key participants.

The Japan Telecommunication Services Market Size was valued at USD 106.8 Billion in 2022. The Market Size is Growing at a CAGR of 5.2% from 2022 to 2032 (CII Research, 2024)

A Shift Toward Light-Based Efficiency

This innovative approach replaces electrical signals with light pulses to reduce delays and energy consumption, making it highly attractive to data-heavy firms like Google, Amazon, and Microsoft. NTT’s flagship Innovative Optical and Wireless Network (IOWN) technology leads the charge, while Fujitsu applies expertise from supercomputer development to create cutting-edge optical transmission equipment.

Positioning Japanese Solutions in a Competitive Market

This initiative is also part of Japan’s broader effort to provide alternatives to Huawei products, which currently hold a 29% global market share in telecommunications equipment. While Fujitsu and NEC account for only 5%, collaboration with U.S. firms offers a pathway for growth, especially as security concerns about Huawei continue to mount.

Tapping Into Expanding U.S. Data Center Investments

American tech giants, including Amazon, Google, Microsoft, and Meta, are expected to contribute to nearly half of global data center investments by 2026, according to Dell’Oro Group. Japan’s advanced technology positions its companies to benefit from this surge, with NTT’s international forum—featuring members like Intel and Google—serving as a hub for collaboration and innovation.

Through strategic partnerships and cutting-edge solutions, Japan aims to expand its influence in global telecommunications while addressing the growing demand for energy-efficient, high-performance systems.

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Rey Alcaraz

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