POET Expands Capacity to Meet AI Infrastructure Demand
POET Technologies announced plans to expand its optical engine production capacity in Malaysia. The company signed a binding MOU with Quanzhou Sanan Optical Communication Technology to acquire their 24.8% stake in the Super Photonics Xiamen (SPX) joint venture, making SPX a wholly-owned POET subsidiary. This strategic move enables POET to implement its 'China Plus One' strategy and relocate wafer-scale assembly operations outside China.
The company is negotiating with Malaysian contract manufacturers to establish wafer-scale assembly of optical engines, with operations expected to start by year-end. The expansion will increase production capacity to over one million optical engines annually, focusing on 800G and higher speed transceivers for AI networks through 2026.
POET Technologies ha annunciato piani per espandere la sua capacità di produzione di motori ottici in Malaysia. L'azienda ha firmato un MOU vincolante con Quanzhou Sanan Optical Communication Technology per acquisire la loro partecipazione del 24,8% nella joint venture Super Photonics Xiamen (SPX), rendendo SPX una filiale interamente controllata da POET. Questa mossa strategica consente a POET di implementare la sua strategia 'China Plus One' e trasferire le operazioni di assemblaggio a livello wafer al di fuori della Cina.
L'azienda sta negoziando con produttori di contratti malaysiani per stabilire l'assemblaggio a livello wafer dei motori ottici, con le operazioni che dovrebbero iniziare entro la fine dell'anno. L'espansione aumenterà la capacità produttiva a oltre un milione di motori ottici all'anno, concentrandosi su tranceivers da 800G e velocità superiori per reti AI fino al 2026.
POET Technologies anunció planes para expandir su capacidad de producción de motores ópticos en Malasia. La empresa firmó un MOU vinculante con Quanzhou Sanan Optical Communication Technology para adquirir su participación del 24,8% en la joint venture Super Photonics Xiamen (SPX), convirtiendo a SPX en una subsidiaria totalmente propiedad de POET. Este movimiento estratégico permite a POET implementar su estrategia 'China Plus One' y reubicar las operaciones de ensamblaje a nivel de oblea fuera de China.
La empresa está negociando con fabricantes de contratos en Malasia para establecer el ensamblaje a nivel de oblea de motores ópticos, esperando que las operaciones comiencen a finales de año. La expansión aumentará la capacidad de producción a más de un millón de motores ópticos anualmente, centrándose en transceptores de 800G y velocidades más altas para redes de IA hasta 2026.
POET Technologies는 말레이시아에서 광 엔진 생산 능력을 확장할 계획을 발표했습니다. 이 회사는 Quanzhou Sanan Optical Communication Technology와 24.8%의 지분을 인수하기 위한 구속력 있는 MOU를 체결했으며, Super Photonics Xiamen (SPX) 합작 회사를 POET의 완전 소유 자회사로 만듭니다. 이 전략적 조치는 POET가 'China Plus One' 전략을 구현하고 중국 외부로 웨이퍼 조립 작업을 이전할 수 있게 해줍니다.
이 회사는 말레이시아 계약 제조업체와 협상 중이며, 연말까지 광 엔진의 웨이퍼 조립을 시작할 계획입니다. 이번 확장은 생산 능력을 연간 백만 개 이상의 광 엔진으로 늘려 2026년까지 AI 네트워크를 위한 800G 및 고속 트랜시버에 집중할 것입니다.
POET Technologies a annoncé des projets d'expansion de sa capacité de production de moteurs optiques en Malaisie. L'entreprise a signé un MOU contraignant avec Quanzhou Sanan Optical Communication Technology pour acquérir leur participation de 24,8% dans la coentreprise Super Photonics Xiamen (SPX), faisant de SPX une filiale entièrement détenue par POET. Ce mouvement stratégique permet à POET de mettre en œuvre sa stratégie 'China Plus One' et de déplacer les opérations d'assemblage à l'échelle des plaquettes en dehors de la Chine.
L'entreprise est en négociation avec des fabricants sous contrat malaisiens pour établir l'assemblage à l'échelle des plaquettes des moteurs optiques, les opérations devant commencer d'ici la fin de l'année. L'expansion augmentera la capacité de production à plus de un million de moteurs optiques par an, en se concentrant sur des transceivers de 800G et de vitesses supérieures pour les réseaux AI d'ici 2026.
POET Technologies hat Pläne angekündigt, seine Produktionskapazität für optische Motoren in Malaysia zu erweitern. Das Unternehmen hat ein verbindliches MOU mit Quanzhou Sanan Optical Communication Technology unterzeichnet, um deren 24,8% Anteil an dem Joint Venture Super Photonics Xiamen (SPX) zu erwerben, wodurch SPX eine vollständig im Besitz von POET befindliche Tochtergesellschaft wird. Diese strategische Entscheidung ermöglicht es POET, seine 'China Plus One'-Strategie umzusetzen und die Wafer-Assemblierung außerhalb Chinas zu verlagern.
Das Unternehmen verhandelt mit malaysischen Vertragsherstellern, um die Wafer-Assemblierung von optischen Motoren einzurichten, wobei mit dem Betrieb Ende des Jahres zu rechnen ist. Die Expansion wird die Produktionskapazität auf über eine Million optische Motoren jährlich erhöhen und sich bis 2026 auf 800G und schnellere Transceiver für KI-Netzwerke konzentrieren.
- Acquisition of remaining 24.8% stake in SPX JV, gaining full control of operations
- Expansion of production capacity to over 1 million optical engines annually
- Strategic geographical diversification through 'China Plus One' strategy
- USD$90,000 marketing services expense for three-month period
Insights
This strategic move to consolidate optical engine production in Malaysia represents a significant operational transformation. Taking full control of the SPX joint venture while implementing a "China Plus One" strategy demonstrates strong supply chain risk management. The projected capacity of over one million optical engines per year specifically for 800G and higher speed transceivers positions POET to capitalize on growing AI infrastructure demands.
The timing of operational transfer by year-end and the focus on Malaysia as a manufacturing hub aligns with current industry trends of diversifying away from China-centric production. The consolidation of assembly operations should improve operational efficiency and reduce coordination complexities inherent in joint venture arrangements. The binding MOU structure indicates a well-planned transition with minimal disruption to existing production capabilities.
POET's strategic pivot towards AI infrastructure demonstrates excellent market positioning. The focus on 800G optical engines specifically for AI clusters addresses a critical bottleneck in AI infrastructure scaling. With major tech companies rapidly expanding their AI capabilities, the demand for high-speed optical interconnects is expected to grow substantially through 2026 and beyond.
The production capacity expansion is well-timed to meet the surging demand from AI data centers. The complete ownership of manufacturing operations gives POET greater control over its supply chain and technology implementation, which is important for maintaining competitive advantages in the fast-evolving AI hardware market. This positions POET as a key supplier in the AI infrastructure ecosystem.
Assumes control of JV and centers Optical Engine assembly in Malaysia
TORONTO, Nov. 25, 2024 (GLOBE NEWSWIRE) -- POET Technologies Inc. (“POET” or the “Company”) (TSX Venture: PTK; NASDAQ: POET), the designer and developer of the POET Optical Interposer™, Photonic Integrated Circuits (PICs) and light sources for the data center, tele-communication and artificial intelligence markets, today announced its intention to expand its optical engine production capacity in Malaysia.
The Company also announced that it has signed a binding Memorandum of Understanding (MOU) with Quanzhou Sanan Optical Communication Technology Co., Ltd. (“SAIC”) to transfer to POET its
Concurrently, the Company has been negotiating with several contract manufacturers in Malaysia to become the focal point for POET’s wafer-scale assembly of optical engines and expects to sign an agreement this month and to start operations by the end of the year.
“The addition of wafer-scale equipment to our assembly and test operations will significantly expand our production capacity to cover the projected needs of our customers for 800G optical engines being sold to AI networks through 2026,” commented Dr. Suresh Venkatesan, Chairman & Chief Executive Officer of POET. “We can now project an assembly and test capacity exceeding one million optical engines per year, all dedicated to the 800G and higher speed transceivers required for AI clusters.”
The
Expansion of IR Activities
The Company entered into an agreement with 1123963 B.C Ltd DBA CAPITALIZ ON IT (‘’CAPITALIZ’’), to conduct market awareness and marketing services, commencing on November 15, 2024 and terminating on February 15, 2025. The nature of the services to be provided by CAPITALIZ include, but are not limited to, advice, content development, media buying and distribution, and marketing services through social media channels. The Company will pay CAPITALIZ a total of USD
About POET Technologies Inc.
POET is a design and development company offering high-speed optical modules, optical engines and light source products to the artificial intelligence systems market and to hyperscale data centers. POET’s photonic integration solutions are based on the POET Optical Interposer™, a novel, patented platform that allows the seamless integration of electronic and photonic devices into a single chip using advanced wafer-level semiconductor manufacturing techniques. POET's Optical Interposer-based products are lower cost, consume less power than comparable products, are smaller in size and are readily scalable to high production volumes. In addition to providing high-speed (800G, 1.6T and above) optical engines and optical modules for AI clusters and hyperscale data centers, POET has designed and produced novel light source products for chip-to-chip data communication within and between AI servers, the next frontier for solving bandwidth and latency problems in AI systems. POET’s Optical Interposer platform also solves device integration challenges in 5G networks, machine-to-machine communication, self-contained "Edge" computing applications and sensing applications, such as LIDAR systems for autonomous vehicles. POET is headquartered in Toronto, Canada, with operations in Allentown, PA, Shenzhen, China, and Singapore. More information about POET is available on our website at www.poet-technologies.com.
| Media Relations Contact: Adrian Brijbassi Adrian.brijbassi@poet.tech | Company Contact: Thomas R. Mika, EVP & CFO tm@poet.tech |
Forward-Looking Statements
This news release contains “forward-looking information” (within the meaning of applicable Canadian securities laws) and “forward-looking statements” (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995). Such statements or information are identified with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “potential”, “estimate”, “propose”, “project”, “outlook”, “foresee” or similar words suggesting future outcomes or statements regarding any potential outcome. Such statements include the Company’s expectations with respect to the success of the Company’s product development efforts, the performance of its products, the expected results of its operations, meeting revenue targets, and the expectation of continued success in the financing efforts, the capability, functionality, performance and cost of the Company’s technology as well as the market acceptance, inclusion and timing of the Company’s technology in current and future products and expectations regarding its successful penetration of the Artificial Intelligence hardware markets.
Such forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, the completion of agreements with its JV partner, the opening of a production facility in Malaysia, the size, future growth and needs of Artificial Intelligence network suppliers, management’s expectations regarding the success and timing for completion of its development efforts, the introduction of new products, financing activities, future growth, recruitment of personnel, reorganization efforts, plans for and completion of projects by the Company’s consultants, contractors and partners, availability of capital, and the necessity to incur capital and other expenditures. Actual results could differ materially due to a number of factors, including, without limitation, the failure of Artificial Intelligence networks to continue to grow as expected, the failure of the Company’s products to meet performance requirements for AI and datacom networks, lack of sales in its products, lack of sales by its customers to end-users, operational risks in the completion of the Company’s projects, risks affecting the Company’s ability to complete its products, the ability of the Company to generate sales for its products, the ability of its customers to generate sales for products that incorporate the Company’s products, the ability to attract key personnel, the failure of its reorganization efforts and the ability to raise additional capital when needed. Although the Company believes that the expectations reflected in the forward-looking information or statements are reasonable, prospective investors in the Company’s securities should not place undue reliance on forward-looking statements because the Company can provide no assurance that such expectations will prove to be correct. Forward-looking information and statements contained in this news release are as of the date of this news release and the Company assumes no obligation to update or revise this forward-looking information and statements except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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FAQ
What is POET Technologies' new production capacity target for optical engines?
What is POET Technologies' expansion plan in Malaysia?
What stake did POET Technologies acquire in Super Photonics Xiamen (SPX)?
