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POET and Sanan IC Sign LOI to Form $50 Million Joint Venture

Date Announced: 08 Jul 2020

Proposed JV Aims to Disrupt the Data Center Market with Superior Economics and Scale using the POET Optical InterposerTM.

TORONTO, Ontario POET Technologies Inc., developer of the POET Optical Interposer and Photonic Integrated Circuits (PICs) for the data center and telecommunication markets, today announced that the company signed a Letter of Intent to establish a joint venture with Xiamen Sanan Integrated Circuit Co. Ltd. (”Sanan IC”) to manufacture cost-effective, high-performance optical engines based on POET’s proprietary CMOS compatible Optical Interposer platform technology.

The proposed joint venture (“JV”) will be formed with contributions of US$50 million based on a combined commitment of cash and intellectual property from Sanan IC and intellectual property and know-how from POET. Sanan IC is a world-class wafer foundry service company with an advanced compound semiconductor technology platform, serving the optical, RF microelectronics and power electronics markets.

Sanan IC is a wholly owned subsidiary of  Sanan Optoelectronics Co., Ltd. (Shanghai Stock Exchange, SSE: 600703), the  leading manufacturer of advanced ultra-high brightness LED epitaxial wafers and chips in the world. 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 data communications applications, including internet data centers and 5G carrier networks.

The proposed joint venture will 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.

Combined capabilities

“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,” said Dr. Suresh Venkatesan, Chairman and Chief Executive Officer of POET Technologies, Inc. “Sanan IC is the world’s preeminent manufacturer of compound semiconductors, and we are excited to partner with them in delivering our next generation solutions.”

“This joint venture has the potential to have a breakthrough on technological innovation as well as product competitiveness,” said Raymond Cai, Chief Executive Officer of Sanan IC. “We will employ Sanan IC’s flexibility and experience in customized lasers and photo diodes 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. As a premiere foundry service provider for compound semiconductor wafers, we are pleased to partner with POET on a joint venture to deploy these technologies.”

The global market for optical transceivers is estimated to be US$5.7 billion in 2020 and projected to reach a value of US$9.2 billion by 2025, representing a CAGR of 10.0%, according to MarketsandMarkets Research Private Ltd.

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.

Contact


Thomas R. Mika, EVP & CFO
120 Eglinton Avenue, East
Suite 1107
Toronto, ON
M4P 1E2
Canada 
 
Tel: +1 416-368-9411
Fax: +1 416-322-5075
 
 

E-mail: tm@poet-technologies.com

Web Site: www.poet-technologies.com

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