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A Mitsubishi executive has said the company is doubling its production of optical devices used in large data centres due to increased demand.
However, the increase in production will still not match the needs of the sector, according to the semiconductor executive for the electronics company.
Next month, the company is ramping up production capacity to produce twice as much as last year as the optical components produced are used in data centers which are increasingly powering AI.
“But that won’t be enough to meet the strong level of inquiries we’re getting” said Masayoshi Takemi, senior executive officer for Mitsubishi Electric Corporation, “We may need double what we’ll have in September.”
The data centre demand is led largely by the need to power AI, due to the complex algorithms requiring more energy to complete larger problems.
Mitsubishi is struggling to meet sustained global demand as a key supplier of optic fiber communication devices that link servers to one another.
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By GlobalDataAI’s appetite for high-speed and high-volume calculations is propelling sales of Mitsubishi Electric’s devices, which boast low power consumption and heat emission, according to Masayoshi Takemi who is in charge of the company’s semiconductor and devices business.
Comments made by the executive are the latest sign of continued need for AI infrastructure, even as investors struggle to price the technology’s impact on companies’ future sales.
Demand from the top five data centre providers in the US is “very strong” and “still growing” Takemi said.
Mitsubishi Electric controls almost half of the global market for optical transmission devices in data centres, in part because of its electro-absorption modulated laser diodes’ ability to balance both speed and output, according to the company.
Takemi revealed that it wouldn’t be overreaching to say that all US hyperscalers are Mitsubishi Electric customers.
Only a small part of Mitsubishi’s business is made up of optical devices however, with the semiconductor and devices arm earning less than 4% of the company’s revenue last fiscal year.