Coherent said its 2027 orders are almost fully booked and extend into 2028, with no signs of demand weakening so far. Revenue in the first quarter of fiscal 2027 was $2.37 billion, up 49.9% year over year. The company also signed a long-term PhotonLink supply agreement with a major AI company, which is expected to generate about $20 billion in revenue over the next five years, with revenue recognition beginning in 2028. In-house InP capacity doubled year over year this quarter. Coherent plans to begin volume production of 6-inch InP in Zurich in the first half of 2027 and expects InP capacity to double again by the end of 2027.
Why we recommend it: The order outlook, long-term supply agreement and planned InP capacity expansion show how AI optical interconnect demand is translating into investment in production capacity, providing insight into supply chain timing.
OFweek Laser Network · NewsOptics industryOptics and AIPicksAI score7070
Coherent reported FY1Q27 revenue of $2.37 billion, up nearly 50% year over year, and a gross margin of 40.6%. It raised its long-term gross margin target from 42% to 45%. Data center and communications revenue was $1.95 billion, or 82% of total revenue. Its 1.6T optical modules are ramping at multiple customers, and the company signed a new five-year PhotonLink supply agreement worth about $20 billion, with revenue expected to begin in early CY28. The analysis identifies InP capacity and vertical integration as key to profitability, while also citing risks including easing supply constraints, module competition, DSP supply limits and high capital expenditure.
Why we recommend it: The analysis links a higher gross margin target to InP expansion, in-house production share and product mix, offering a perspective on how growth in AI optical communications demand could translate into profitability for component makers.
Nov 4Wed
Wednesday
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score7373
Marvell and Lumentum have signed a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction with an implied enterprise value of $115 billion. Each Lumentum common share will be exchanged for 4.5 Marvell common shares. The deal is expected to close in the first half of 2028, subject to shareholder and regulatory approval. The companies plan to integrate their chip, laser, optical module, and OCS capabilities to advance optoelectronic co-design for AI interconnects.
Why we recommend it: The deal's terms put the integration of laser, optical module, and chip capabilities into a concrete framework, providing context for the shift from discrete components to optoelectronic co-design in AI interconnects.
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score7676
Marvell and Lumentum management said the combined company will continue supplying components such as lasers and DSPs to optical module customers while also competing in the module business. They emphasized ongoing support for existing customers and collaboration with hyperscalers and optical module partners. The deal has an implied enterprise value of $115 billion and is expected to close in the first half of 2028.
Why we recommend it: Management at both companies addresses the competitive relationship between component supply and module businesses, providing context on customer trust and partnership arrangements in vertical integration for optical interconnects.
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score7373
Dongshan Precision plans to begin selling optical modules and optical chips externally in parallel at a future date. It has already made small-batch external optical chip sales this year. The company said capacity is not a bottleneck and that it can deliver quickly once upstream material supply increases. Its CPO products have passed internal reliability validation and are now in back-end packaging; the timing of subsequent customer sampling remains uncertain.
Why we recommend it: Dongshan Precision disclosed plans for external optical chip sales and an update on CPO, helping distinguish among capacity readiness, internal validation, and customer qualification as separate stages of commercialization.
OFweek Laser Network · NewsOptics industryOptics and AIPicksAI score6767
Localization across the optical communications supply chain is advancing at different rates in CW, EML, equipment, and materials, with delivery scale, yield, and customer qualification creating the main differences. Shijia Photons' 100mW CW chips are shipping in volume, with 400mW chips delivered in small batches. Suzhou Everbright Photonics' 200G EML remains under customer validation, with mass production planned for Q4 2026. CPO/NPO ramp-up also depends on downstream customer demand and adoption timelines.
Why we recommend it: The analysis compares delivery stages across chips, equipment, and materials, offering a way to assess mass-production capability, effective supply, and the pace of customer qualification separately.
Photonics.comOptics industryOptics and AIPicksAI score7474
Marvell Technology has signed a definitive agreement to acquire Lumentum in an all-stock transaction with an implied enterprise value of $115 billion. The deal combines Marvell's electrical and optical interconnect, network switching, and custom XPU capabilities with Lumentum's high-performance lasers, optical transceivers, optical circuit switching (OCS), and compound semiconductor manufacturing capabilities.
Why we recommend it: The deal brings electrical interconnect, silicon photonics, lasers, and optical module capabilities into one portfolio, providing a concrete example of the integration of chips and active optical devices in the AI interconnect supply chain.
optics.org (SPIE Industry News)Optics industryOptics and AIPicksAI score7676
The boards of Marvell and Lumentum agreed to an all-stock acquisition initially valued at $115 billion, aimed at combining AI data center connectivity with active photonic devices. Each Lumentum share will be exchanged for 4.5 Marvell shares. The deal requires approval from both companies' shareholders and regulators and is expected to close in the first half of 2028. The companies plan to pursue co-design for near-packaged optics (NPO) and co-packaged optics (CPO).
Why we recommend it: The acquisition brings active photonic devices such as lasers together with digital signal processing capabilities, offering an industry example of the shift toward integrated design for data center optical interconnects.
optics.org (SPIE Industry News)Optics industryOptics and AIPicksAI score7373
PsiQuantum unveiled an 8 × 8 optical circuit-switching demonstrator based on its silicon photonics platform and has provided samples to some prospective customers. Laboratory tests showed a typical insertion loss of 1.2 dB, a crosstalk metric of 40 dB, and a reconfiguration time of less than 3 ms, with no amplification required. The company is developing a commercial product and plans to announce it in the coming months.
Why we recommend it: The platform extends the low-loss silicon photonics capabilities developed for quantum computing to AI interconnects. Its insertion loss and reconfiguration time provide benchmarks for comparing optical switching solutions.
OFweek Optics Network · NewsOptics industryOptics and AIPicksAI score7070
Marvell and Lumentum announced an all-stock acquisition agreement on November 2, with an implied enterprise value of about $115 billion. The article attributes the deal to securing upstream light-source capacity and strengthening optical-electrical co-design, and cites a statement that Lumentum's optical-device capacity is sold out through early 2029. The transaction is expected to close in the first half of 2028, subject to shareholder approval and regulatory clearance.
Why we recommend it: The article examines tight laser supply and optical-electrical co-design in the context of the same deal, providing background on why optical interconnect companies are integrating upstream.
LightwaveOptics industryOptics and AIPicksAI score7171
Marvell plans to acquire Lumentum in an all-stock deal valued at $115 billion as AI data centers shift toward optical connections. Each Lumentum share will be exchanged for 4.5 Marvell shares. The deal is expected to close in the first half of 2028, subject to shareholder and regulatory approval. The companies plan to combine silicon photonics, lasers, optical modules, OCS, and specialized manufacturing capabilities, with closer co-design across the optical and electrical signal chain.
Why we recommend it: The report links the deal terms to compound semiconductor manufacturing, advanced packaging, and optoelectronic co-design, providing context for consolidation in the AI data center optical interconnect industry.
Nov 2Mon
Monday
OFweek Laser Network · NewsOptics industryOptics and AIPicksAI score7272
Yuanjie Technology reported revenue of RMB 1.609 billion for the first three quarters of 2026, up 319.83% year on year, and net profit attributable to parent company shareholders of RMB 1.024 billion, up 866.88%. AI data center demand drove sustained high-volume deliveries of 70mW and 100mW high-power CW laser chips. 100GPAM4EML products have entered mass shipment, while 200GPAM4EML products are undergoing customer validation.
Why we recommend it: Yuanjie Technology's product deliveries and business mix show how AI computing demand is reaching upstream light sources. The quarter-on-quarter profit change also helps put revenue growth and profitability in context.
Oct 30Fri
Friday
OFweek Laser Network · NewsOptics industryOptics and AIPicksAI score6363
On October 28, the market reported that Marvell was in advanced acquisition talks with Lumentum. Neither side commented and no agreement had been signed. After the news, LITE rose about 11% in after-hours trading, while MRVL fell about 8%-9%. The article argues that an acquisition would help fill the laser capability needed for co-packaged optics (CPO), but Marvell holds about $3.9 billion in cash and equivalents, and share-swap financing could cause dilution. The acquisition price and exchange ratio remain unclear. The original article also discussed risks from channel conflicts, regulatory approval and the ramp-up of InP capacity.
Why we recommend it: The article places the acquisition rumor in the combined context of scarce light sources and share-swap dilution, explaining the relationship between the strategic motive to add laser capability and deal-price pressure.
T&S Communications said its supporting products for co-packaged optics (CPO), including FAU and ELS, have entered stable volume production and delivery, while NPO supporting products remain in R&D, customer sampling and validation. The company expects the share of revenue from CPO supporting products to increase significantly in 2027, and if follow-up validation and customer introduction go smoothly, NPO may also enter volume production in 2027. Its Thai subsidiary recently purchased about 160,000 square meters of land for factory construction.
Why we recommend it: The material distinguishes the different stages of stable delivery of co-packaged optics supporting products and NPO sampling and validation, providing a concrete basis for comparing supply chain implementation progress between the two architectures.
Eoptolink said 1.6T is ramping up gradually this year, and NPO has received firm order guidance for 2027, with volume shipments expected in 2027. The company posted third-quarter revenue of 10.940 billion yuan and net profit of 3.843 billion yuan. Tight raw material supply has had some impact on shipments, while capacity is being expanded rapidly in parallel in Chengdu and Thailand. The company expects NPO delivery demand to grow further in 2028, with the potential for large-scale shipments.
Why we recommend it: Links the 1.6T ramp-up and NPO order guidance to capacity expansion at two sites and tight material supply, providing concrete context for how optical module makers move from demand growth to actual delivery.
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score7171
Innolight said orders from major customers essentially cover the full year 2027, and it has seen no order cancellations or cuts to customers' 2027 demand guidance. The company posted third-quarter revenue of 27.769 billion yuan and net profit of 8.587 billion yuan. Shipments of 800G and 1.6T products continue to expand, while core materials such as DSPs remain in varying degrees of tight supply. The company expects new products such as NPO to ramp up gradually in the second half of 2027, with truly large-scale deployment expected in 2028.
Why we recommend it: Places 800G and 1.6T orders, pricing and DSP supply in the same operating context, helping to show how optical module demand growth is constrained by delivery conditions.
Oct 29Thu
Thursday
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score6666
Marvell is in advanced talks to acquire Lumentum, according to Bloomberg, citing people familiar with the matter, and an announcement could come as early as next week, although no final agreement has been reached. Neither company has publicly confirmed the talks, and terms such as price and closing have not been disclosed. The article discusses the integration logic in light of Marvell's silicon photonics, high-speed SerDes and co-packaged optics (CPO) portfolio, and notes that Nvidia's investments in both companies and potential financing needs add complexity to the deal.
Why we recommend it: The potential acquisition links light-source assets with high-speed interconnect platforms, providing context for understanding how AI interconnect competition is shifting from individual components toward a more complete technology portfolio.
Oct 27Tue
Tuesday
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score6565
Chicheng disclosed that its optical communications testing subsidiary Jialante posted sales revenue of 364 million yuan in the third quarter of 2026, up 80% sequentially, with net profit of 136 million yuan, up 155% sequentially. Jialante focuses on 800G, 1.6T optical modules and silicon photonic wafer testing. Its CPO product has completed validation and won customer approval, while NPO test solutions continue to advance. Chicheng will continue to ramp up capacity and deliver orders, while keeping Jialante's specialist team operating independently.
Why we recommend it: Jialante's quarterly results and test product progress offer concrete clues on how optical communications capacity expansion is reaching equipment makers, helping to explain shifts in demand for high-speed optical module testing.
Oct 22Thu
Thursday
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score6666
NVIDIA has launched DSX POD, a modular AI factory reference design expected to cut deployment time from about six months to as little as 14 days. The solution consists of 7 NVIDIA Vera Rubin NVL72 liquid-cooled racks, with a 17 km Scale-out network interconnected by fully mass-produced Spectrum-X co-packaged optics (CPO) Ethernet switches.
Why we recommend it: The explanation of the optical engine shifting from socketed to soldered design puts signal, cost and rework trade-offs into real deployment, providing concrete context for understanding CPO packaging choices.
Oct 19Mon
Monday
C114 Communications Network · Optical CommunicationsOptics industryOptics and AIPicksAI score6262
Ao Li, vice president of the China Academy of Information and Communications Technology (CAICT), said the optical communications industry is shifting from being driven by traditional telecom to being driven by AI computing, with next-generation communications networks and optical networks evolving in parallel. He noted that 1.6T is at the early commercialization stage globally, hollow-core fiber is already used for low-latency dedicated lines and cross-domain computing interconnects, and multi-core fiber is entering high-density data center cable scenarios. He expects optical circuit switching systems to form an optoelectronic hybrid architecture with electrical switching, while the relevant technology roadmaps continue to develop in parallel.
Why we recommend it: Comparing high-speed interconnects, hollow-core and multi-core fiber, and optical switching under AI computing demand provides context for understanding the engineering pace of each optical communications pathway.