Japanese electronic motor manufacturer Nidec is projecting significant growth in their business related to water-cooling modules for generative artificial intelligence data centers. The company anticipates sales in this area to reach 1 trillion yen ($6.32 billion) by the end of 2025, a substantial increase from the projected sales of 40 to 50 billion yen in March 2025.
Nidec’s Chairman Shigenobu Nagamori expressed confidence that they will achieve this revenue mark during a news conference following the annual shareholders meeting. However, he did not specify a timeline for achieving this goal. The company, headquartered in Kyoto, has been working to enhance its presence in the battery-powered electric vehicle market. They have been focusing on the development of an “e-axle” traction motor, which integrates gear, motor, and power-control electronics.
Despite their efforts in the EV market, Nidec is facing challenges such as demand uncertainty and intense price competition in China. In response, the company announced plans in April to expand production capacity for water-cooling modules created in collaboration with an American AI server manufacturer in Thailand. This strategic move aims to support their growth in this key area.
As Nidec moves forward with their expansion plans and product development initiatives, they are navigating a complex landscape of market dynamics and competitive pressures. The company continues to innovate and invest in technologies that drive their growth and success.
