Japanese telecom giant NTT is set to establish a ¥70 billion ($440 million) investment fund focused on photonics, AI semiconductors and advanced communications infrastructure.
The proposed IOWN AI Fund will be backed by NTT, SK Group, Chunghwa Telecom and the Development Bank of Japan.
The fund will target startups developing photonics-electronics convergence technologies, AI chips and infrastructure based on NTT's Innovative Optical and Wireless Network (IOWN) architecture.
The initiative comes as AI-driven growth increases demand for lower-power, higher-bandwidth communications and computing technologies.
For the photonics sector, the fund could provide new opportunities for companies developing optical interconnects, photonic integrated circuits and co-packaged optics for AI data centers.
The move also deepens cooperation between Japan, South Korea and Taiwan in strategic communications and semiconductor technologies.
