Source Photonics Raises USD 90 Million, Consolidating the Leading Position in Optical Modules and Chips Industry

Source Photonics Raises USD 90 Million, Consolidating the Leading Position in Optical Modules and Chips Industry

7 DEC 2023, Source Photonics

Source Photonics Holdings (Cayman) Limited (hereinafter referred to as “Source Photonics” or the “Company”) has received USD 90 million in Series D round fundraising from two Chinese A-share listed companies – Vantone NeoDev Group (600246, Vantone NeoDev Group) and Guangdong Haomei New Material Co., Ltd. (002988, Haomei New Material).

Vantone NeoDev stated in its investment announcement that “High-end optical module products are crucial for data centers and telecommunication, and with the outbreak of large AI models and computing power requirements, the market demand for optical modules, especially high-end module products are growing rapidly. Source Photonics has a strong competitiveness in its optical transceivers that meet different rate requirements, which is widely used in data centers, transmission networks, 5G, access networks and other scenarios, the high-speed optical module products used in new data centers, like 400G and 800G, have achieved mass production. In terms of chip manufacturing, Source Photonics has the capability of designing, manufacturing, and mass delivery of 25G, 53G, 106G EML and 25G DFB chips. Benefiting from its ability of independent R&D and production of high-speed lasers, Source Photonics is able to avoid supply chain risks, effectively control the cost of optical chips, realize the efficient R&D and delivery of next generation optical module products, and secure the supply of DFB and advanced EML chips in the face of the shortage in the domestic market. Regarding downstream customers, Source Photonics’ customers with stable orders cover the major enterprises in the data communication and telecommunication industry.

Source Photonics is a globally leading supplier of innovative and reliable optical communication technology and products. Our solutions and products are widely used for communication and data connectivity in data centers, metropolitan area networks, and access networks. Source Photonics adds value to our customers by continuously engaging in the research and development of next-generation solutions to meet the rapidly growing global demands in cloud infrastructure, wireless communication, routing, and fiber-to-the-home applications. We run our world-class operation at maximum efficiency, identifying and eliminating waste in our processes to create more value for our customers. Our technical expertise in R&D runs deep with manufacturing process development expertise and highly specialized engineering teams based around the globe — experts in optoelectronic devices, optical subassembly, and module design.

Haomei New Material, in its investment announcement stated that ” Since 2023, with generative AI tools represented by ChatGPT leading a new wave of technological revolution, major players in cloud computing have strategically deployed in large models. The development of large-model AI technology is placing heightened demands on computational power. Optical communication networks are a crucial foundation for computing power networks, and high-speed, low-power optical module solutions are essential for enhancing data center computing power. Since the Q3 of 2023, there has been an explosive surge in demand for high-speed optical modules and accompanying advanced optical chips. Source Photonics, with its accumulated customer base, optical chip research and production capability, and vertically integration of the one-stop delivery of optical modules, is poised for new development opportunities. Haomei New Material is optimistic about the sustained growth prospects in the field of optical modules.”

The new round of financing will provide funds for Source Photonics’ new product R&D and capacity expansion. We will strategically allocate the majority of the financing towards the R&D, production capacity expansion and material preparation of optical modules, with a focus on the 400G, 800G, 1.6T module products, as well as the 53G EML and 106G EML optical chip. The new round of financing will play an important role in further consolidating the company’s leading position in the global optical module and chip industry, providing our customers with leading products and high-quality services.