Announcement and Market Reaction
On 24 September 2026 Sumitomo Electric Industries saw its shares jump 6.1% to ¥2,207, the highest level since 1 September, after disclosing a partnership with Meta Platforms and NEC to construct a next‑generation transoceanic submarine cable.
Partnership Details
The three companies will jointly develop “Petal,” a roughly 7,000‑kilometre submarine cable that will connect the United States and France. The cable is scheduled to begin commercial operations in 2029. Under the agreement, Meta will fund and operate the system, NEC will handle overall design and construction, and Sumitomo Electric will supply its two‑core optical fiber, specifically the 2C Z‑PLUS Fiber ULL multicore fiber technology.
Technical Specifications
Petal will employ 48 spatial channels – equivalent to 24 fiber pairs with two cores per fiber – and is engineered to deliver a transmission capacity of about 1 petabit per second. This capacity is roughly double that of the earlier Anjana system previously developed by the same three firms.
Context and Timing
The collaboration was announced on 22 September 2026. Japanese markets were closed for a holiday immediately after the announcement, making 24 September the first full trading session for investors to react.
Stock Market Impact
In addition to Sumitomo Electric’s 6.1% rise, NEC shares increased 1.14% to ¥4,867. The broader market reflected the news as the Nikkei 225 index was up 1.3% at midday, with electronic‑equipment stocks among the leading gainers.
Broader Industry Note
Meta continues to expand its subsea infrastructure, having invested in more than 20 submarine cable projects to support growing data traffic and AI‑related computing demand, according to Data Center Dynamics.