NEC (TYO:6701) plans to invest over 100 billion yen over five years to expand its undersea cable business and raise its global market share from just over 20% to nearly 40%, Nikkei reported Tuesday.
The strategy includes upgrades at its subsidiary OCC Corporation, which runs Japan's only submarine cable plant in Kyushu and is currently operating at about half capacity despite expected demand growth from AI infrastructure, according to the report.
NEC is also investing in multicore fiber technology to boost data capacity, alongside spending on new cable-laying vessels to reduce reliance on chartered ships and improve execution speed, the report said.
The global submarine cable market remains dominated by Alcatel Submarine Networks, SubCom and NEC, though China's HMN Tech is gaining share, according to the report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)