Minebeamitsumi to boost bearings output for data centers: Nikkei

MinebeaMitsumi is set to increase production of ball bearings for data centers amid growing demand for cooling solutions in high-performance computing environments, according to recent disclosures. The company has positioned itself as a key supplier of precision components for data center infrastructure, particularly in the form of bearings used in cooling fans and fan motors. This move aligns with the company’s strategic focus on expanding its presence in high-growth sectors, including those driven by artificial intelligence and cloud computing.

The company’s Precision Technologies (PT) segment, which includes ball bearings, has historically maintained a strong market position, with 180 million units per month. Recent quarterly forecasts indicate that while the PT segment is expected to see a slight decline in the second quarter of FY3/2024 due to data center demand softness, the segment is anticipated to recover in the second half of the fiscal year. The company has also noted that the demand for ball bearings in data centers is closely tied to the performance of fan motor manufacturers downstream.

MinebeaMitsumi’s production capacity for ball bearings remains robust, with 240–250 million units per quarter in recent periods. The company has also highlighted the importance of maintaining appropriate inventory levels to meet potential surges in demand, particularly as data centers continue to expand their cooling infrastructure to accommodate high-heat-generating AI servers.

Looking ahead, the company has identified opportunities to enhance the precision and performance of its bearings for high-speed rotation applications, which are expected to become increasingly relevant in next-generation data center equipment. These developments underscore MinebeaMitsumi’s ongoing efforts to adapt its core technologies to evolving market needs while leveraging its vertically integrated production system.