Infocommunications
22VISION Ideal state
We aim to become a leading supplier in the high-capacity network interconnect market with its core competencies in high-end optical fiber/ connection technology, transmission devices/compound semiconductors, and access equipment technology.
Overview of business
Recent advances in the infocommunications field, such as more widespread use of cloud services and the arrival of 5G, have dramatically increased data traffic. The Sumitomo Electric Group is responding to these changes by making use of our extensive base of technology, including transmission devices, compound semiconductors, access devices and some of the world's best optical fiber production technology, to achieve high-capacity, high-speed communication.
In the 1970s, we began producing optical fibers, which are now an essential component of the communication infrastructure our society relies on. Among them, those for ultra-long distance submarine systems with a transmission distance of over 10,000 km are required to exhibit high quality and high reliability. We have built a presence in the industry with our high technical expertise as represented by the Z fiber, which is an optical fiber developed for ultra -long distance submarine system applications. The Z fiber broke the world record for low -loss optical fiber.
Other strengths of ours include production technology for ultrahigh-fiber-count optical cables and software development for video and optical access devices. We lead the global market with initiatives such as collaborative vertical integration from raw materials to finished devices to develop compound semiconductors for optical and wireless applications.
VISION 2022 Mid-term Management Plan: Segment Strategy
FY2020 Results
Net sales increased by 7,175 million yen (3.3% year-on-year) to 224,576 million yen thanks to increased demand for optical/electronic devices and access network devices. Operating income increased by 6,508 million yen to 24,343 million yen, as an increase in sales and cost reductions through productivity improvements absorbed the decline in optical fiber prices.
Priority initiatives for FY2021
●The Group will continue to develop and expand sales of sophisticated products that meet social trends and market needs, such as data center-related products, electronic devices, and access network equipment, including ultra-low-loss optical fibers, ultrahigh-fiber-count optical cables, optical wiring devices, and optical devices that support the expansion of cloud service* markets and fifth-generation mobile communication systems (5G).
●For products where price competition is fierce, such as optical fibers, we will strive to secure profitability through exhaustive cost reductions.
*Cloud services: Data and software that were previously used by users on their own computers are now provided to users as a service via a network.
Examples of our initiatives to solve social issues
Z-PLUS Fiber®150 ULL
With the rapid evolution and popularization of smart phones and video streaming services, there is a demand for higher performance optical fibers that can transmit more information at once. There is a particularly strong demand for lower transmission loss in optical fibers for long-haul transmission systems connecting continents. Our Z-PLUS Fiber 151 ULL is an ultra-low-loss product that has been realized by combining our world leading mass production technologies and newly developed lowloss technologies We have also expanded the effective core area (cross-sectional area of the part where signal is transmitted) to achieve optimal transmission performance in high-capacity digital coherent communication technology, which is rapidly becoming more widely used.
In particularly submarine cable system, the product is expected as contributing not only to an increase in transmission capacity and an extension of transmission distance, but also to a reduction in the total cost of the system by reducing the number of expensive equipment such as optical amplifiers.
Optical fiber is made of glass as thin as a human hair with an optical signal inside, and is a high-performance transmission medium that can transmit tens of kilometers away. Other benefits include a high speed, long distance transmission, and highly reliable transmission which is unaffected by electromagnetic induction noise.