• Foxconn Interconnect Technology, a leader in interconnect solutions for communications infrastructure, has chosen POET Technologies (TSXV:PTK), a picks-and-shovels AI stock, to provide optical engines for its 800G and 1.6T optical transceiver modules
• POET differentiates itself among AI infrastructure providers by its ability to lower costs and supercharge scaling for its clients
• POET Technologies offers next-gen data transmission solutions using wafer-level semiconductor technology
• POET Technologies stock has given back 47.07 per cent year-over-year, but only 5.80 per cent since 2019

Foxconn Interconnect Technology, a leader in interconnect solutions for communications infrastructure, has chosen POET Technologies (TSXV:PTK), a picks-and-shovels AI stock, to provide optical engines for its 800G and 1.6T optical transceiver modules.

An optical module uses light to transmit and receive data from a variety of sources, like servers, data centers and fiber optic networks at faster speed, lower power and with no heat generation compared to the traditional method of electrons through copper.

The partners will develop 800G and 1.6T pluggable optical transceiver modules to address growing demand for AI applications and high-speed data centers tied to some of the largest end customers in the world. POET will complete the engine design by Q3 and begin production at its joint venture, Super Photonics Xiamen, by Q4.

POET differentiates itself in the multi-billion-dollar global optical transceiver market by automating legacy engine and module assembly techniques with advanced semiconductor technology, yielding numerous competitive advantages, including:

• Up to 30 per cent lower costs
• Up to 30 per cent lower power requirements
• Over 75 per cent reduction in size
• The ability to scale production by 100 times or more
• 10 times lower capital expenditures for assembly and testing
• Utility across a diversity of applications

With value-added technology, validation from high-profile customers like MultiLane, Vanguard Automation and Beijing FeiYunYi Technology, and the global AI market expected to compound at an astounding 28.46 per cent through this decade to US$826.7 billion, POET is rapidly claiming market share and shortening its path to significant shareholder value creation.

Leadership insights

“The growth in demand from emerging applications such as artificial intelligence and machine learning requires continuous innovation to keep pace with power and cost requirements,” Joseph Wang, chief technology officer at Foxconn Interconnect Technology, said in a statement. “We are excited to partner with POET on this development. POET’s hybrid-integration platform technology will enable us to use best-of-breed components and ramp to high volume at a much faster pace and in a cost-efficient manner.”

“POET’s vision is to ‘semiconductorize’ photonics by integrating electronic and photonic components on the interposer to enable wafer-scale assembly,” added Suresh Venkatesan, POET’s chairman and chief executive officer. “We are honored to work with an industry leader like Foxconn, capable of ramping to high volume production with its expertise in transceiver design and manufacturing. We look forward to expanding our collaboration to future projects once this initial project is complete.”

About POET Technologies

POET offers data transmission solutions based on its POET Optical Interposer, a novel platform that enables the seamless integration of electronic and photonic devices into a single multi-chip module using wafer-level semiconductor technology. The company’s products are designed to optimize performance across artificial intelligence, the Internet of Things, autonomous vehicles and high-speed networking for cloud service providers and data centers, among other high-growth computing sectors.

POET Technologies stock (TSXV:PTK) is up by 8.7 per cent trading at C$3.25 per share as of 10:19 am ET. The stock has given back 47.07 per cent year-over-year, but only 5.80 per cent since 2019.