POET Technologies Inc. (NASDAQ: POET) witnessed a notable shift in its stock performance during the recent after-market session, experiencing an increase of 5.16% to reach a trading price of $2.24. This uptick followed a prior regular-session decline of 4.48%, where the stock concluded at $2.13. Recent developments and statements that have improved investor confidence have been attributed for these swings in POET’s shares.
Strategic Cooperation Using Technology
Foxconn Interconnect Technology (“FIT”), a top supplier of interconnect solutions for communication infrastructure and other rapidly expanding applications, and POET Technologies have announced a major alliance.
FIT has selected the silicon photonics integrated circuits (Silicon PIC) from POET as the optical engines to be incorporated into its 800G and 1.6T optical transceiver modules. The goal of this partnership is to meet the growing need for high-speed data transmission capabilities brought about by sophisticated data center networks and cutting-edge AI applications.
Under this partnership, POET Technologies will leverage its proprietary POET Optical Interposer technology to develop and supply the silicon photonics integrated circuit optical engines. Concurrently, FIT, renowned for its expertise in high-speed pluggable optical transceivers, will design and manufacture these modules for delivery to prominent global customers.
Innovation And Market Growth
The increasing demand for applications in artificial intelligence and machine learning necessitates continuous technological innovation to meet stringent power and cost requirements. POET Technologies’ hybrid-integration platform technology is poised to enable FIT to incorporate best-of-breed components, thereby facilitating rapid scaling to high-volume production in a cost-effective manner.
POET Technologies aspires to revolutionize the photonics industry by integrating electronic and photonic components on a single interposer, facilitating wafer-scale assembly. Working with an industry leader like FIT, POET aims to leverage FIT’s transceiver design and manufacturing expertise to achieve high-volume production and expand their collaborative efforts to future projects.
Future Outlook And Market Projections
POET Technologies anticipates completing the design of the optical engines for FIT by Q3 2024, with production set to commence at their joint venture, Super Photonics Xiamen, by Q4 2024. The global market for 800G and 1.6T optical transceivers is projected to experience significant growth, with a compound annual growth rate (CAGR) of 33%. According to Lightcounting Market forecast, this market is expected to expand from $2.5 billion in 2024 to $10.5 billion by 2029.
