Re: Maybe
in response to
by
posted on
Apr 01, 2020 11:28AM
Our customer in Wuhan is Accelink. Accelink supplies Huawei with optoelectronic components. Huawei is the largest manufacturer of networking equipment. Huawei is government owned by the Chinese government. They claim to be employee-owned, but the company's trade union committee is registered with and pay dues to the Shenzhen federation of the All-China Federation of Trade Unions, which is effectively controlled by the Chinese Communist Party. Huawei is also launching 5G in a very big way in Asia. Some of their components must be hermetically sealed because of exposure to the weather. One of POET's products is a hermetically sealed telecom. component (for 5G). Whether POET ends up supplying Huawei directly remains to be seen, but as long as POET supplies Accelink, we have some exposure. The Chinese tear down, and reverse engineer everything. Suresh knows this, but defensive building of products is not perfect, and eventually Huawei will get into ours. To be clear, China wants to be rid of their dependence on suppliers from abroad, but until they can improve their manufacturing quality, they will continue to buy from abroad, they will continue to acquire companies, they will continue to reverse engineer, and they will continue the theft of IP. What POET makes is so cutting edge that I fully expect a Chinese consortium to make a bid to buy us because China is pushing exceedingly hard to become, and remain dominant, and getting an entire platform by acquiring POET would expedite that goal.