Coherent Unveils High-Efficiency Lasers for Silicon Photonics Transceivers

Rhea-AI Summary

Coherent Corp. (NYSE: COHR) has launched a new family of high-efficiency continuous wave (CW) distributed feedback (DFB) lasers for silicon photonics transceiver modules. These indium phosphide (InP) lasers are designed to operate in the O-band (1310 nm region) and offer 15% greater power efficiency than current industry standards. The first product, a 70 mW 1310 nm laser, will begin commercial shipments in September 2024.

Key features include:

• Uncooled, non-hermetic operation up to 85°C junction temperature
• Exceptional reliability due to aluminum-free active quantum-well region
• Planned expansion to a 6-inch InP fab in Sherman, Texas, by 2026, increasing production capacity by 5x

These lasers address the growing bandwidth demands in AI-driven data centers and are important for 800G and 1.6T optical transceivers.

Positive

• Launch of new high-efficiency CW DFB lasers for silicon photonics transceivers
• 15% greater power efficiency compared to industry standards
• Planned 5x increase in production capacity by 2026 with new 6-inch InP fab
• Commercial shipments of 70 mW 1310 nm laser to begin in September 2024
• Exceptional reliability due to aluminum-free active quantum-well region

Negative

• None.

Insights

Tech Expert

Coherent's new high-efficiency CW DFB lasers mark a significant advancement in silicon photonics technology. The 15% increase in power efficiency addresses a critical pain point in the industry. This improvement could lead to substantial energy savings in data centers, potentially reducing operational costs and environmental impact.

The ability to operate at 85°C junction temperature without cooling is impressive, suggesting improved reliability and reduced cooling requirements. This could simplify transceiver designs and further reduce power consumption. The planned expansion to a 6-inch InP fab is a strategic move, potentially giving Coherent a competitive edge in meeting the growing demand for these advanced lasers.

Financial Analyst

Coherent's innovation in InP laser technology positions them well in the rapidly growing market for high-speed optical transceivers. The timing is opportune, aligning with the surge in AI-driven data center demand. The planned 5x increase in production capacity by 2026 could significantly boost revenue potential, especially if they can maintain their technological lead.

Investors should note the potential for increased market share and improved margins due to the product's efficiency advantages. However, it's important to monitor the execution of the capacity expansion plan and any potential competition in this space. The stock may see positive momentum if Coherent can successfully capitalize on the growing demand for advanced silicon photonics solutions.

Market Research Analyst

The launch of these high-efficiency lasers aligns perfectly with the burgeoning demand for 800G and 1.6T optical transceivers in AI-driven data centers. This market is expected to see explosive growth in the coming years, driven by the rapid adoption of machine learning and AI technologies. Coherent's focus on power efficiency and reliability addresses key customer pain points, potentially giving them a significant competitive advantage.

The planned product roadmap, including higher-power lasers and CWDM grid-specific options, suggests a comprehensive strategy to capture various segments of the market. If Coherent can maintain its technological lead and successfully scale production, they could be well-positioned to become a dominant player in this high-growth sector.

PITTSBURGH, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a global leader in materials, networking, and lasers, announced today the launch of new high-efficiency continuous wave (CW) distributed feedback (DFB) lasers. Specifically engineered for silicon photonics transceiver modules, this innovative laser family represents a leap forward in indium phosphide (InP) laser technology.

Image 1. 70 mW CW InP Laser Diode Chip.

Designed to operate in the O-band (1310 nm region), the Coherent CW InP lasers redefine the capabilities of silicon photonics modulators used in 800G and 1.6T optical transceivers. These transceivers are on the forward edge of data transmission technology, crucially addressing the explosive bandwidth demands brought on by the rapid adoption of machine learning networks within AI-driven data centers.

Unparalleled Power Efficiency for a New Era of Connectivity
Featuring a proprietary low series-resistance design, the Coherent CW lasers achieve approximately 15% greater power efficiency compared with the current industry standard. This breakthrough addresses the critical demand for reduced power consumption in silicon photonics transceivers, providing customers with a clear edge in operational efficiency.

“Our new family of CW lasers for silicon photonics is creating a wave of excitement among industry leaders,” said Dr. Kou-Wei Wang, Vice President of InP Directly Modulated Lasers & Photodiodes. “By lowering power consumption, we’re addressing one of the most pressing challenges faced by our customers today. And with our upcoming expansion to a state-of-the-art 6-inch InP fab in Sherman, Texas, by 2026, we expect production capacity to be 5x our current production rate, a significant ramp given the complexity of this material. We are committed to leading the market with technology and supply chain capacity as our customers increase demand in the InP laser sector.”

A New Standard in Laser Technology
The first offering in this revolutionary laser family is a 70 mW 1310 nm laser, designed for uncooled, non-hermetic operation up to an impressive 85°C junction temperature. Commercial shipments of this laser begin in September 2024. Coherent will release a higher-power laser for cooled operations, along with lasers tailored for the CWDM grid, in 2025.

These lasers are not just efficient, they are robust. They offer exceptional reliability, thanks to the elimination of aluminum in the active quantum-well region.

About Coherent
Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Headquartered in Saxonburg, Pennsylvania, Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Media Contact:

Amy Wilson
Manager, Corporate Communications & Investor Relations
corporate.communications@coherent.com

FAQ

What new product has Coherent Corp. (COHR) launched?

Coherent Corp. (COHR) has launched a new family of high-efficiency continuous wave (CW) distributed feedback (DFB) lasers for silicon photonics transceiver modules.

How much more efficient are Coherent's (COHR) new lasers compared to industry standards?

Coherent's (COHR) new CW lasers achieve approximately 15% greater power efficiency compared to current industry standards.

When will Coherent Corp. (COHR) begin commercial shipments of the 70 mW 1310 nm laser?

Coherent Corp. (COHR) will begin commercial shipments of the 70 mW 1310 nm laser in September 2024.

What is Coherent's (COHR) plan for expanding production capacity?

Coherent (COHR) plans to expand to a 6-inch InP fab in Sherman, Texas, by 2026, which is expected to increase production capacity by 5 times their current rate.