Nidec sees AI-related business expanding to more than $6 billion

TOKYO (Reuters) - Japanese electronic motor maker Nidec sees its business in water-cooling modules for generative artificial intelligence data centres expanding to 1 trillion yen ($6.32 billion) in sales.

That compares to the 40 to 50 billion yen in sales of cooling modules for AI servers that Nidec is aiming for in the year to March 2025, and expectations for about 100 billion yen in the following year.

"I think it will reach one trillion yen" in revenues, company Chairman Shigenobu Nagamori told a news conference following an annual shareholders meeting, without specifying how soon that goal will likely be achieved.

The Kyoto-based manufacturer has sought to increase its presence in the battery-powered electric vehicle market through the development of "e-axle" traction motor, which combines gear, motor and power-control electronics.

However, it is facing headwinds over demand uncertainty and fierce price competition in China's EV market.

Nidec said in April it would expand production capacity for water-cooling modules jointly developed with an American AI server maker in Thailand.

($1 = 158.2100 yen)

(Reporting by Satoshi Sugiyama and Kiyoshi Takenaka; Editing by Jan Harvey)