Recently, Tokyo announced that it will promote light-based telecommunications technology to U.S. tech giants. According to Nikkei Asia, the Ministry of Internal Affairs and Communication will extend its support to Japanese companies like Nippon Telegraph & Telephone and tech group Fujitsu, which are candidates for participation in opening a demonstration facility in Silicon Valley.
We Will Offer What These Power-Hungry Companies Need!
In the bold statement, Japan mentioned their technology will replace electrical signals with pulses of light, which can slash transmission delays and electricity usage. According to the same news, Japanese companies have mastered this technology and have named it photonics-electronics convergence.
For instance, NTT is advancing its IOWN technology as the future of telecom infrastructure, while Fujitsu is leveraging its expertise in supercomputer development to create water-cooled optical transmission equipment.
A Tough Battle To China
Japan’s communications ministry plans to position Japanese network equipment outside the United States as a viable alternative to Huawei Technologies’ products for data centres developed by American tech companies in Asia.
Many developing Asian countries, supported by Chinese economic aid, heavily rely on Huawei for communications equipment. However, Western nations view Huawei as a security risk due to its alleged ties to the Chinese military—a claim the company denies.
Globally, American and Chinese firms dominate the telecom equipment market. According to data provider Omdia, Huawei led in 2023 with a 29% market share, followed by U.S.-based Ciena with 19%.
Also read, WeChat and TikTok Got Licensed Under New Law in Malaysia
Fujitsu and NEC together held a mere 5% market share. They will need to strengthen partnerships with U.S. tech giants to expand their footprint. According to market research firm Dell’Oro Group, Amazon, Google, Microsoft, and Meta, the parent company of Facebook, are projected to contribute nearly half of global data centre investments by 2026.
NTT hosts a U.S.-based international forum for developers interested in IOWN, which includes over 150 members from Japan and other countries, with notable participants such as Intel and Google.
