Source Photonics raises over $100m in funding to support growing data-center and 5G business

To further increase the scale of its operations in order to support its growing data-center and 5G business, Source Photonics Inc of West Hills, CA, USA (which provides optical connectivity products for data centers, metro and access networks) has closed more than $100m in equity funding from new financial and strategic investors that will be used for growth investments.

LightCounting reported that sales of optical components and modules to cloud companies grew by 63% in 2016 and 64% in 2017, and will average about 20% annually through 2023. Higher growth rates in 2020-2022 will be driven by the first volume deployments of 400 Gigabit Ethernet (400GbE) as a result of the rise of 5G and the cloud, the market analyst firm adds.

Planned developments include the creation of a new laser fab, upgrades to existing production facilities and increased investment in the R&D of next-generation technologies.

“Exciting new applications such as the Internet of Things (IoT), virtual reality (VR) and cloud services are growing in popularity every day,” notes CEO Doug Wright. “These applications all depend on the next standard of connectivity, and 5G depends on the backing of a world-class optical network… Our investors have shown this confidence in us and are confident that the investment will support our ongoing work to enable the next era of connectivity.”

Upgrades to Source Photonics’ fab in Taiwan have already been completed and production operations have begun for a new fab in Jintan, China, using the latest funding. The funding will also be used towards technology investments for advanced coating technologies to enable next-generation lasers and transceivers for the fast-growing 5G and data center markets.

Source Photonics’ latest range of technology is being exhibited in booth 4021 at the Optical Networking and Communication Conference & Exhibition (OFC 2019) in San Diego, CA, USA (4-7 March). Products on display include its new 400G-LR8 and DR4 QSFP-DD solutions, which are the latest addition to its PAM4-based optical transceivers portfolio. Other products being showcased include several QSFP28 solutions such as the 100G-DR/FR, 100G-SR4, 100G CWDM4, and 100G-LR4. The firm is also demonstrating some of its solutions for the 5G market, such as the 50G-ER QSFP28 and 25G LAN DWM SFP28.

See related items:

Source Photonics opens new laser fab and transceiver assembly facility in China

Source Photonics to double InP laser production capacity with new fab in China, driven by 100G and emerging 400G markets

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