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Aiming to become the global leader in chip-scale photonic solutions by deploying Optical Interposer technology to enable the seamless integration of electronics and photonics for a broad range of vertical market applications

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POET Emerges As A Pure Play In AI Hardware As Its Customers All Serve That Market

nodrog16

Jun 10, 2024 02:20PM

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Re: POET Emerges As A Pure Play In AI Hardware As Its Customers All Serve That Market

in response to

POET Emerges As A Pure Play In AI Hardware As Its Customers All Serve That Market

nodrog16

posted on Jun 10, 2024 03:38PM

“Based on current customers we expect the majority of its revenues in 2025 to come from three customers: Foxconn, Luxshare, and Celestial AI, and all three of them are chasing the AI market. While the company may not announce contracts or purchase orders due to customers requesting secrecy, they all may contribute more than 10% of reported revenues forcing the company to reveal their names in filings.”
- Wow, that’s interesting! I didn’t know about that 10% rule.
“POET believes that the current suppliers to Nvidia for 800G include only InnoLight, E-OptoLink, and possibly Coherent. They use conventional, less fully integrated technology platforms that require active alignments, use more power, and are less efficient. POET expects that its customers will be able to take market share from those three suppliers over time.”
- Yes, this is what I expect too. Good to get some confirmation here!
“POET’s biggest and most recent news is its deal with Foxconn Interconnect Technology (FIT), a subsidiary of Foxconn. FIT plans to be a big player in data center AI and announced a collaboration with MediaTek on system integration for AI networks. The Taiwanese company is designing products with components sourced completely outside China and POET fits that need. The market for 800G single-mode transceivers is over 10 million units a year, and Foxconn hopes to take meaningful market share.”
- I think this fact was not appreciated enough when the Foxconn news came out. What Foxconn is up to completely bypasses China. SPX will be left out. POET will supply customized optical interposers directly to FIT, who will then carry out all further steps themselves. So you can be sure that POET will make a good margin.
“Power consumption will be a huge problem for AI as there is already a shortage of base load energy to fuel current usage, let alone the huge amounts of power needed in the near future.”
- This is a huge problem indeed! POET’s technology won’t be able to solve it on its own, but every bit help. You know that some large power customers like Microsoft, Google, or AWS are seeking long-term power purchase agreements with nuclear power plants to secure access to stable and clean power, or are even considering building their own reactors, don’t you? But okay, that’s an aside.