JX Advanced Metals

Research evidence excerpt

JX Advanced Metals

Global Markets Research

16 June 2026JX Advanced Metals

5016.T 5016 JP / EQUITY: JAPAN STEEL, NONFERROUS METALS, WIRE & CABLE

Nikkei: Company plans to increase InP substrate Rating Neutralproduction capacity by up to 10x

Target price JPY 4,500Quick Note

Closing price

15 June 2026 JPY 3,766First impression positive: If true, this could alleviate production constraints caused

by strong demand (Note: Quick Note reports are not a

On 15 June, the online edition of the Nikkei reported that JX Advanced Metals will invest vehicle for changes to ratings, target

¥120bn to expand production capacity for indium phosphide (InP) substrates, raising prices, or earnings forecasts)

capacity to 7–10x the 26/3 level (when including similar investments already under way),

and that the company expects to generate operating profits of tens of billions of yen in

31/3. The company’s production capacity plan disclosed on 10 February had called for

only a 3x increase. We have not confirmed the accuracy of the report, but if true, this

Research Analystswould be positive news in our view.

Japan chemicals & textiles

InP substrates are compound semiconductors used in optical devices, including light-

Daiki Ban - NSCemitting and receiving elements for optical transceivers. According to the company's 2025 daiki.ban@nomura.com

estimates, it holds a roughly 40% share of the global market for InP substrates (external +81 3 6703 1124

sales basis), with AXT and Sumitomo Electric Industries among its competitors for

Japan steel, nonferrous metals,external sales. The Chinese government has imposed restrictions on InP exports for wire & cable

military purposes, so AXT, which has manufacturing facilities in China, is now required to Yuji Matsumoto - NSC