Establishment of Manufacturing Company for Photonics-Electronics Convergence Devices toward Creation of New Value with IOWN

TOKYO - May 12^th, 2023 — NTT Corporation(NTT) announced to establish NTT Innovative Devices Corporation (NTT Innovative Devices) as a developer, manufacturer and distributor of Photonics-Electronics Convergence Devices. New company will be formed in Jun 2023 with some development functions which are spun off from NTT Laboratories and its mission is to develop Photonics-Electronics Convergence Devices and accelerate go-to-market strategy.

NTT is engaged in various R&D activities to realize the IOWN(Innovative Optical and Wireless Network) initiative, which is a network and information processing infrastructure providing high-speed, high-capacity communications utilizing innovative technology focused on optics and enormous computing resources as well as tremendous computational resources. The key feature of the IOWN initiative is to reduce and overcome the growing power consumption by improving power efficiency. To achieve this goal, it is necessary to develop Photonics-Electronics Convergence Devices that integrate optical circuits and electrical circuits at early stage and have features such as small size, high speed, and low power consumption. Accordingly, NTT will establish a new company to contribute to solving the growing power consumption caused by the increased use of AI by introducing and applying the benefits of Photonics-Electronics Convergence Devices not only in the telecommunications area but also in computing area such as datacenters.

NTT Innovative Devices plans to merge with NTT Electronics Corporation, which develops, designs, manufactures and sells hardware products such as optoelectronic components and communication devices, by August of this year, in order to optimize the resources and expertise of the NTT Group in device development and to establish a structure as a manufacturing company with full scope functions such as planning, design, development, manufacturing and sales of Photonics-Electronics Convergence Devices.

NTT will continue to take on challenges for realization of IOWN Initiative which enable to provide high-speed, high-capacity communications and enormous computing resources beyond the limits of current infrastructure.

About NTT Innovative Devices

About NTT

NTT believes in resolving social issues through our business operations by applying technology for good. An innovative spirit has been part of our culture for over 150 years, making breakthroughs that enable a more naturally connected and sustainable world. NTT Research and Development shares insights, innovations and knowledge with NTT operating companies and partners to support new ideas and solutions. Around the world, our research laboratories focus on artificial intelligence, photonic networks, theoretical quantum physics, cryptography, health and medical informatics, smart data platforms and digital twin computing. As a top-five global technology and business solutions provider, our diverse teams deliver services to over 190 countries and regions. We serve over 75% of Fortune Global 100 companies and thousands of other clients and communities worldwide. For more information on NTT, visit https://www.rd.ntt/e/