Part 3

Optical Growth and Our Strategic Position:

In the realm of optical communication, we find ourselves strategically positioned to capitalize on the burgeoning demand. While several companies manufacture optical modules, a significant portion—around 80% to 90%—still relies on labor-intensive processes. These modules are often produced in job shops or garage operations, primarily in China.

However, POET Technologies has taken a different path. Over the past five years, we’ve developed cutting-edge technology that automates production. By leveraging state-of-the-art semiconductor techniques, we’ve transformed the manufacturing and assembly of optical engines. We call this approach “semiconductorizing” the process.

Here’s why this matters:

Easing Costs and Capital Burden:

Our automated production significantly reduces costs and capital requirements.

Traditional methods, rooted in 1990s manufacturing techniques, struggle to keep up with today’s demands.

Semiconductor Scale and Efficiency:

By aligning optical manufacturing with semiconductor practices, we tap into economies of scale.

Moore’s Law and semiconductor advancements have paved the way for efficient, large-scale production.

AI-Driven Growth and the Need for Automation:

As AI continues its meteoric rise, existing manufacturing techniques face scalability challenges.

The demand for optical transceivers is set to explode, driven by AI applications.

Automation is essential to meet this demand efficiently.

In summary, we’re at the forefront of a new wave, where photonics and semiconductor technologies converge. The future lies in automation, efficiency, and meeting the insatiable appetite for high-speed optical modules. 

Revolutionizing Optical Module Manufacturing: A Semiconductor Approach

The landscape of optical module manufacturing has undergone significant shifts. Currently, approximately 80% to 90% of modules are produced through labor-intensive processes—often in job shops or garage operations, primarily based in China. These methods trace back to direct manufacturing techniques from the 1990s, relying on manual assembly and intricate bill of materials.

However, POET Technologies has embarked on a transformative journey. Over the past five years, we’ve harnessed cutting-edge semiconductor technology to automate production. Our approach dramatically reduces costs and capital requirements associated with manufacturing optical modules.

Here’s how we’re making a difference:

Semiconductorizing Optical Engines:

We’ve coined the term “semiconductorizing” to describe our approach.

By integrating semiconductor practices into optical manufacturing, we tap into economies of scale.

This alignment with Moore’s Law and semiconductor advancements enables efficient, large-scale production.

AI-Driven Demand and Automation:

As AI continues its exponential growth, existing manufacturing techniques face scalability challenges.

The demand for optical transceivers is set to soar, driven by AI applications.

Automation is our answer—a necessity to meet this surge efficiently.

In summary, we’re pioneering a new era, where photonics and semiconductor technologies converge. By automating production, we’re poised to fuel the insatiable appetite for high ..

Semiconductorization of Photonics: A Paradigm Shift

At POET Technologies, we’re at the forefront of a fundamental transformation in how photonics components are assembled and manufactured. Our vision centers around the concept of “semiconductorization of photonics.”

Here’s the journey we’ve embarked upon:

Origins and Pioneering Efforts:

Our journey began in 2018, fueled by a vision to revolutionize optical device manufacturing.

Recently, at the Fiber Conference—the world’s largest optical conference—industry experts acknowledged that our pioneering work is likely to set the standard for future optical device production.

Advantages Inspired by Semiconductors:

We draw inspiration from semiconductor practices, leveraging their proven advantages:

Cost Efficiency: By streamlining processes, we reduce costs.

Compact Size: Our approach optimizes space utilization.

Scalability: We’re positioned to meet growing demands.

Capital Reduction: Efficient manufacturing minimizes capital investment.

Versatility: Our integration approach caters to diverse customer needs.

Perfecting the Technology:

The initial three years were dedicated to perfecting our technology.

In 2022 and 2023, we introduced optical engines—subassemblies akin to building engines for cars. These engines were sold to customers.

Vertical Integration: Building the Whole Car:

Now, in 2024 and beyond, we’re taking the next step.

We’re vertically integrating by manufacturing complete optical modules ourselves.

This strategic move gives us a distinct advantage, allowing us to offer comprehensive solutions.

Just as an electric car manufacturer sells both batteries and cars, we’re building the entire ecosystem.

In summary, the future lies in semiconductor-inspired photonics, and we’re driving this paradigm shift—one module, one engine, and one solution at a time.