POET Technologies Report Update, The Dawn of the Nanophotonics Age ….. The Mitsubishi Ecosystem …. Mark Stansberry October 9, 2024

Understanding the importance of the POET and Mitsubishi Electric is complicated from the get-go. To obtain a broad perspective one must first determine Mitsubishi Electric’s relationship to Mitsubishi Corp.  intrarelationships in Mitsubishi’s vast internal ecosystem, what the units produce, its internal supply and demand chains, its partners and investment ecosystem.

More to the point, one needs to take a close look at Mitsubishi Electric’s Semiconductor and Device's ecosystem. Of Mitsubishi Corp’ $130 billion plus in annual revenue, is its semiconductor and device division’s $2 billion in annual revenue, as indicated in The Observer's August 2024h article titled “Mitsubishi Electric Sees Surging Demand for A.I. Data Center Hardware.”

That article indicates Mitsubishi Electric has 50 percent of the global optical transceiver market. Whether its 50 percent of the AI data center optical transceiver photodiode and laser market was not made clear. The Observer also indicates, that Mitsubishi Electric is increasing its wafer fabrication production capacity of its AI data centered focused optical chips, specifically its 200Gbps PIN-photodiode (PD) chip for the receive end and a 200Gbps electro-absorption modulator laser (EML) diode (EML) for the transmit end to meet demand.

What the agreement means to POET and Mitsubishi is that the two will be able to develop a complete next-generation 200 gbps optical transceiver module that can be sold to the AI data center market.

The optical transceiver market is estimated in the order of $10 to $13 billion. That market is anticipated to grow substantially within the next year because of the transition from 100 gbps to 200 gbps optical transceiver lane rates.

Putting the two pieces of information together, one might assume that POET and Mitsubishi may capture a good share of the high-end 200 gbps Ethernet optical transceiver module market share, competing with companies like Coherent and others.