Largan Precision's Optical Communications Update: Samples to Be Sent This Month, Trial Production Line to Be Completed by End of September, Mass Production Possible by Next Year

Largan Precision (3008-TW) held an online investor briefing today (9th). Lin En-Ping stated that major customers remain strongly committed to upgrading smartphone products, with next-generation camera modules expected to begin shipping as early as 2027. Regarding fiber array (FA) components, Largan plans to complete sample deliveries this month, with mass production lines potentially ready by mid-next year, positioning optical communications as a new growth driver.

Expanding into optical communication components, Largan is currently developing FA and multi-channel micro-lens arrays (PMLA), targeting CPO (co-packaged optics) specifications. Lin noted that customers have varying preferences between Edge Coupling (EC) and Surface Grating Coupling (GC) technologies. While Corning's Glass Bridge platform is designed for EC architecture, Largan is focusing on GC, which remains the market mainstream.

On the development timeline, Largan has already received formal sample specifications from customers and will complete sample submissions this month. Customers are expected to begin verification swiftly, with the process taking 2 weeks to 1 month. However, Largan’s own mass production line is not yet fully ready, meaning full-scale production remains some time away.

For silicon photonics capacity planning, Lin stated that the first trial production line is expected to be completed by the end of Q3 this year. Once validated, mass production lines will be replicated, with expansion speed dependent on demand. Largan has in-house equipment assembly capabilities but may outsource if demand becomes urgent.

Lin projected that the FA mass production line could be fully set up by mid-2027, entering volume production once yield targets are met. Due to high material costs, the average selling price (ASP) is expected to remain relatively high.

Largan’s stock opened at NT$4,025 today, reaching a high of NT$4,140 and a low of NT$3,950, closing flat at NT$3,950. Trading volume reached 1,512 shares. Among the three major institutional investors, foreign investors sold a net 485 shares, investment trusts bought 23, and proprietary traders bought 13.