POET’s platform continues to evolve as one would expect with a new platform technology. 

One of the key aspects/benifit's associated with the China JV was to show industry that the POET platform is capable of high volume assembly on an automated line while meeting design parameters of the optical engines that are produced on that line. 

A couple of weeks ago I provided the following response on the subject:

Baba: What is bothersome to me about that percentage is that it has not changed since the first quarter. To me, that means Sanan hasn't contributed any more capital into the venture. FJ and others far more knowledgeable, do you have a different take on that stat? 

I asked something similar a while ago. Suresh  commented that Sanan would increase capacity beyond the 2 lines when that capacity is required. I suspect that would have been discussed recently on Suresh’s visit. Since it is off the shelf mature equipment I think it would be a rather quick turnaround time to commission on site there or at future JV sites.

POET’s CAPEX (as stated) is 10 times lower than the cost of a fab. The turnaround time to add production should be fairly quick. The wafers are produced in Malaysia and the electronic/optical chips/components are produced by suppliers. 

I did request clarification on the subject so I was happy to see the following statement in the updated Zack’s report:

It (the China JV partner) is also preparing to increase capacity by 10X through the purchase of additional capital equipment and a move to full-wafer production.