The C+1 (China Plus One) term orginated with Covid-19 and subsequent impact of China lockdowns. With so much stuff coming from China, securing alternate sources of stuff as supply redundancies to continue business operations in the event of a  supply chain disruption is paramount. The inter-connected and inter-dependent world is already struggling to keep up with rapid change where a hiccup in one place can create a lot of pain elsewhere.    

SV's usage of the term "C+1 strategy" is not related to its own supply chain concerns  but to new opportunities elsewhere in politcally friendly locations.  

OhioTom provided a C+1 potential of the POET+Mitsubishi relationship where OEs could be fabricated. Being a safe jursidiction, even the OI platform on Japanese soil is a a possibility. Add other locations such as Malaysia, Singapore and South Korea to become a C+n where a few friendlies provide additional supply chain options for each other as protetection. 

China appears to be increasingly choosing POET OEs over local supply. China has local companies supplying or able to supply  the lasers - most important component of an OE. China has the external supply of wafers coming from Silterra, located in friendly Malaysia. The OE fabrication is local via SPX. China is striving to be self-sufficient with as much supply chain as possible being local. 

As for 800G+, POET needs to work out a new deal. It could be supplying wafers to SPX or directly to Sanan IC itself where there would be uncomplicated, upfront payment.  

It is unimaginable that SV would give China access to the OI platform where the threat of IP theft is a distinct possibility.  <= Thank you Okiedo in advance for clicking the recommendation button.