VitesseWave Aligns with AI-Era High-Speed Transmission, Poised to Partner with Zhengwen in Optical Communications Market

Zhengwen (4906-TW), which has invested in optical communications manufacturer VitesseWave (7930-TW), saw the latter list on the Emerging Stock Market last week. Zhengwen currently holds approximately 21% of VitesseWave’s shares, making it the largest shareholder outside the company, though it does not influence corporate decisions. VitesseWave Chairman Chen Xiaosheng stated that both companies have established a close cooperative relationship through complementary optical communication technologies. Zhengwen may become a customer and supply chain partner of VitesseWave, leveraging market demand to build a collaborative framework and jointly expand into the optical communications market.

Initially focused on passive components, VitesseWave has evolved over nearly 30 years to center its core technologies on CW lasers, optical engines, and key optical communication components, delivering products under its own brand to meet customer needs.

Chen noted that as Zhengwen’s high-speed optical module business gradually scales up, VitesseWave has the potential to become a supplier of CW lasers and optical engines. Conversely, if VitesseWave expands its optical module operations in the future, it could leverage Zhengwen’s mature manufacturing capabilities as an OEM partner.

Chen stated that the company’s current sales channels are heavily concentrated in North America, accounting for over 98%, with 2% in Japan, and it continues to expand into other markets to provide end-to-end product solutions for optical communications. For instance, many system-level customers lack deep understanding of optical technology, so the company also offers relevant technical solutions. The core product is currently the CW Laser CHIP, and the company aims to continue investing in high-power CW laser R&D, seeking to secure a significant position in the global CW laser market within three years.

Additionally, VitesseWave stated that Zhengwen’s capital investment in 2023 brought more than just funding—opening up greater potential for collaboration in AI-driven optical communications development.

Looking ahead, Chen also mentioned ongoing supply chain challenges related to raw materials in the second half of the year, particularly under rising demand for optical communications and laser amplifier applications. Indium Phosphide (InP) substrates remain in high demand, and due to restrictions from certain countries, supply remains tight—posing a key supply chain challenge to be addressed.