30 June 2020
POET and Sanan IC to form $50m JV
POET Technologies Inc of Toronto, Ontario, Canada has signed a letter of intent (LoI) to establish a joint venture with Sanan Integrated Circuit Co Ltd of Xiamen City, Fujian province (China’s first 6-inch pure-play compound semiconductor wafer foundry) to manufacture cost-effective, high-performance optical engines based on POET’s proprietary CMOS-compatible Optical Interposer platform technology.
The non-binding letter of intent outlines the basic terms and conditions related to the business model and contributions of each of the parties, and is subject to execution of definitive agreements.
The proposed JV will be formed with contributions of US$50m based on a combined commitment of cash and intellectual property from Sanan IC and intellectual property and expertise from POET.
As a subsidiary of ultra-high-brightness LED epiwafer and chip maker Sanan Optoelectronics Co Ltd, Sanan IC’s compound semiconductor wafer foundry technology platform serves the optical, RF microelectronics and power electronics markets. The JV is expected to design, develop, manufacture and sell 100G, 200G and 400G optical engines with customized lasers and photodiodes from Sanan IC combined with optical interposer platform technology from POET. Based on know-how from both companies, such optical engines are engineered for high yield and large-scale to meet the burgeoning market for high-speed datacoms applications, including Internet data centers and 5G carrier networks.
The proposed joint venture aims to offer a new generation of cost-effective, high-performance optical engines based on POET’s Optical Interposer to module manufacturers, systems suppliers, data-center operators and network providers globally.
“Combining the advanced wafer foundry manufacturing platform capabilities of Sanan IC with the true wafer-scale and hybrid integration approach of the POET Optical Interposer platform, we will be able to offer transceiver manufacturers the ability to span several generations of devices and unlimited scale for high-volume applications at a highly economical price,” believes POET’s chairman & CEO Dr Suresh Venkatesan.
“We will employ Sanan IC’s flexibility and experience in customized lasers and photodiodes with our advanced foundry manufacturing platform capability and extensive capacity with POET’s Optical Interposer platform to enable our joint venture company to offer the market the highest-performance optical engines at a competitive price,” says Sanan IC’s CEO Raymond Cai.
The global market for optical transceivers will increase at a compound annual growth rate (CAGR) of 10% from US$5.7bn in 2020 to US$9.2bn by 2025, according to MarketsandMarkets Research Private Ltd.