Discussion on the joint development of the blue laser module by Furukawa Electric and NICHIA (Part 2)Establishment of the joint laboratory “CELL” and a future in which joint operations are “normal”

——What events led to the establishment of CELL?

Kayahara (Furukawa Electric): Originally, the start was completely unrelated to the blue laser. At Furukawa Electric, in order to strengthen sales of industrial fiber lasers, we felt it was necessary to have a location in the Chubu Region, particularly in the Toyota or Kariya area, where many customers who handle automotive products are located. Previously, we serviced customers in Chiba, but we started looking for a location closer to our customers in around 2023.

At the time, we had a one room laboratory in the Toyota area. When we installed equipment on a trial basis, local customers started to visit often as if stopping by a convenience store. Given this, we decided to take the opportunity to build a full-size laboratory and started looking for land.

However, openings in quasi-industrial zones where laboratories can be built were taken soon after they became available, and we were unable to find suitable land. We ultimately spent almost 2 years searching. I then received notice from the company representative who continued persistent negotiations with realtors that “I found land on which an office building can be built”.

Hama (NICHIA): Initially, we moved forward with discussions based on both companies using the entire building and each renting 2 floors. Then, our president proposed, “Rather than renting or leasing, let’s buy the entire building”.

Behind this proposal was the potential restrictions that could arise in relation to utilizing the space and enhancing the functions when renting. Therefore, buying the building would enable freedom in the layout, as well as maximize the functions required there. This desire led to the proposal to buy the building.

——How did Furukawa Electric react to the proposal?

Kayahara (Furukawa Electric): We offer both fiber laser and blue laser products, and we had been preparing based on eventually placing both at the facility, so we reacted positively to the proposal.

Hyuga (Furukawa Electric): Currently, I feel the business has entered the full-scale phase. The blue laser was developed in response to the global trend toward “electrification”, but that trend has slowed somewhat today. As the overall business, the final product is centered on our oscillator, so we should be responsible to sales. However, the expected results have not yet been achieved, and I believe NICHIA feels the same way.

When thinking about what is necessary in order to make this business successful, a laboratory at which customers can see actual processing is essential. It was difficult to realize a laboratory of this scale alone, but NICHIA offered to “do it together”. This led to the realization of the current laboratory.

In collaborations, normally “1+1” equals 2, but it is not unusual to be less. However, we are aiming to generate results that greatly exceed “1+1=2”. In this sense, CELL is an extremely important facility that symbolizes the solidarity between both companies, and I feel we need to further advance this initiative going forward.

Hama (NICHIA): I believe there was a clear event behind the desire to make it successful as a business. Following creation of the product through development, upon entering the manufacturing phase, I feel the decision to relocate manufacturing from Furukawa Electric’s plant in Chiba to our HQ plant was that event. After making that major decision, in the next phase of “strongly selling the product”, there was a strong desire within NICHIA to contribute in some way. I believe this is behind the current sales cooperation.

Hyuga (Furukawa Electric): Both companies share a foundation of “valuing technology”, and I feel we are very similar in this regard. However, there are differences in terms of the thinking towards business. Furukawa Electric has a long history and for better or worse, we are somewhat conservative. On the other hand, NICHIA makes extremely radical decisions, including in how investments are made in the business. I believe this is part of the different cultures at our companies.

Hama (NICHIA): That might be true. NICHIA might be a company that is proactive towards investments. We value speed in relation to business and try to make rapid decisions to maintain that speed.

Kayahara (Furukawa Electric): The opening ceremony for the laboratory was held at the end of November 2024, but because we were using a building originally purchased as an office building as a laboratory, the interior renovations took quite a long time. In fact, the completion of renovations, installation of the equipment and start of full-scale operations did not occur until the end of May 2025.

Once operations commenced, naturally, customers started to come to the laboratory. Given how the laboratory was operated, NICHIA would attend meetings with long-time Furukawa Electric customers, and I was sometimes asked, “Why is NICHIA here?” Today, I can confidently explain, “Because we are working together”, but at the beginning, fusing the two companies together was an issue. The results obtained here will be fed back to the laser itself, leading to the realization of a better product. Thus, NICHIA should also participate in the meetings. Now, rather than provide an explanation, I try to create an atmosphere in which “we are naturally together” and will not lead to customers wondering “why are they here?” As one initiative, we all wear the same uniform in an effort to present solidarity.

——How have customers responded? Through that explanation, have you noticed any changes in the customers’ response?

Kayahara (Furukawa Electric): Initially, the response was “Why is NICHIA here?”, but I am not asked very often anymore. Compared to the early days, there is much less doubt, and I feel customers have naturally accepted that “You are just working together”.

Ishiguro (NICHIA): Furukawa Electric actively involves us based on this awareness, such as “We have this upcoming experiment. Do you want to come?”, and this creates an environment in which it is very easy for us to participate.

——What are your thoughts about the value created because you are working together?

Kayahara (Furukawa Electric): Honestly, we can handle the laboratory activities on our own. But why are we conducting them together? Recently, I feel that by working together, we can more smoothly form consensus for development of the next-generation laser.

Hyuga (Furukawa Electric): At the start of the CELL project, not everyone involved could understand and accept the meaning of operating the laboratory together. By taking the time for repeated dialogue, although there is still room for improvement, I feel both companies have definitely and rapidly mixed together. Ultimately, as Kayahara stated, we are aiming for an environment in which it is understood that we are “naturally together”.

Kayahara (Furukawa Electric): When the project started, executive management of both companies instructed us to “talk frankly and without boundaries”. In other words, we were asked to speak our true feelings and thoughts. This instruction enabled us to open all of our know-how and insights and work with determination. Without this push, we might have settled into a more hesitant relationship.

——What are your thoughts about the future of this business?

Hyuga (Furukawa Electric): First of all, I want to further cultivate the solidarity we have established with NICHIA. I believe the CELL laboratory is the only facility of its kind anywhere in Japan. Going forward, I want to get rid of the constructs of “Furukawa Electric and NICHIA” and conduct our activities from an even larger perspective. Japan’s laser technology had fallen slightly behind other countries, but last year, we realized a worldclass blue laser and jumped forward as the top blue laser in the world. I want to make this laboratory a place that overcomes the traditional boundaries as a company, conveys Japan’s technological capabilities to the world and plays a leading role.

The starting point of the business was for automotive products, but laser processing technology still has not been fully utilized within society. Rather, it is a technology with extremely high potential for further expanded uses in the future. This blue laser most likely has many new applications that we are not even aware of yet.

Kayahara (Furukawa Electric): I want to make this laboratory a home to the world’s cutting-edge technology. It will be important to continuously install the newest equipment. This challenge would be difficult for Furukawa Electric to achieve alone, but we can do it by working together with NICHIA. I want to maintain this momentum, continue to incorporate the newest technology and make this laboratory a facility where we can convey the new trends. In addition, I want to foster this laboratory into a facility that people from around the world will say, “Japan’s CELL is awesome”.

Ishiguro (NICHIA): I firmly believe this is a place for creating new things. In the future, I want to make it a location with strong brand power that is recognized as “CELL is the place for laser processing”. Through exchanges with customers, I feel the young members from both companies are gradually coming together as one. Without interrupting this trend, I want to further deepen the solidarity and expand the brand.

Hama (NICHIA): Through the initiatives with Furukawa Electric, we have increased our technological capability and cemented the trust between our companies. Now that the foundation of the business has solidified, we will enter the phase during which we will strongly sell the products. I want to realize this here at CELL. In addition, I believe there are still many things our companies can achieve together that other companies cannot. Without stopping at CELL, I want to think together with Furukawa Electric about the next actions to be taken in order to win in the market.

Hayamizu (Furukawa Electric): I am currently involved in manufacturing the oscillator, which is the final product of this project. We will foster CELL into a major brand of both companies and create products that customers will use. These products will incorporate NICHIA’s blue laser module. NICHIA’s feelings for the module and Furukawa Electric’s feelings for the product. I believe it is my mission to link these and provide through CELL products customers will feel are “good products”.

Tsukiji (Furukawa Electric): My time as a project member ended over 1 year ago, but talking with everyone today, I feel the trust between our companies is successively deepening, and this makes me very happy. I believe the solid relationship holds potential not just for this business but also for new developments in other domains. Trust between companies is a major asset. While valuing this relationship, I look forward to the various new challenges to be undertaken in the future.

Omori (NICHIA): Following a long time and huge efforts by many members from both companies, we are finally standing at the starting line. Development will continue to involve new challenges, and the most difficult time is yet to come. I want to aim for results in which “1+1” equals “100”, not “2”, and make this business a success. I am currently heading the division responsible for development, but when the business succeeds, I want to foster CELL into a representative location that is admired by the young members from both companies.

Nagahama (NICHIA): Joint development with Furukawa Electric began in 2017, and we are currently in the 9th year. Today we have become so familiar with the Furukawa Electric engineers that we call each other by nicknames. From the first days of the project, both companies wanted to “win on the global stage as an all-Japan team”. As a result, we were able to create the world’s No. 1 product in terms of brightness and quality. Going forward, I want to further advance this initiative and deliver products to the market. Also, I hope we can leverage the unwavering trust to undertake some new initiative.