Coherent (COHR) investor relations material

Strategic vision and market opportunity

• PhotonLink platform launched to simplify the transition from electrical to photonic connections in AI data centers and telecom, addressing increasing bandwidth demands across all link distances.

• Integrated optics market opportunity expected to grow by $30 billion by 2030, expanding the addressable market to $90 billion, with the total optical solutions market projected to exceed $60 billion.

• Over 10 unique customer engagements each for CPO and NPO, and more than five for chip-to-chip connections, reflecting strong market traction and anchor customers secured with long-term agreements.

• Initial CPO production ramps in Q4 2026 for scale-out, with scale-up following in H2 2027; NPO ramps in H2 2027, and chip-to-chip targeted for 2029–2030.

• Customers are demanding complete, scalable solutions that move optical connectivity closer to the silicon, driven by higher data rates and longer distances.

Technology platforms and manufacturing scale

• PhotonLink covers the full photonic chain: generate, shape, guide, and receive, offering a complete, architecture-agnostic solution.

• Four main photon generation platforms: ultra-high-power CW lasers, high-power CW lasers, VCSEL arrays, and high-density VCSEL arrays, all ramping in production.

• Over 1 billion photodetectors, 300 million indium phosphide lasers, and 700 million GaAs VCSELs shipped, with advanced wafer fabs in Texas, Sweden, Switzerland, California, and Europe.

• Capacity for over 1 billion VCSEL arrays per year, with global expansion and transition to 6-inch wafer lines for both gallium arsenide and indium phosphide.

• Demonstrated ability to manufacture and scale complex optical assemblies and components, supporting rapid customer deployment and doubling InP laser production through 2027.

Integrated solutions and customer value

• PhotonLink delivers up to $15,000 content per 100 Tbps chip, providing end-to-end solutions from photon generation to detection.

• Integrated solutions include external laser sources, precision fiber assemblies, micro lens arrays, isolators, circulators, WDM multiplexers, and silicon photonics modulators.

• Specialty fiber manufacturing focuses on polarization-maintaining and mode-matched fibers, with significant expansion underway.

• Silicon photonics receivers and 6.4 Tbps NPO modules demonstrated, with 200 Gbps per lane in production, 400 Gbps links showcased, and NPO modules integrating advanced optics.

• Open CPX MSA participation enables architectural flexibility and common connector standards for customers.