Lite-On's Strategic Investment in Optical Communications Component Manufacturer DenseLight to Contribute Revenue by Late 2027

Lite-On (2301-TW) announced on the 31st multiple strategic investment initiatives. The board approved an investment of $34.3 million to acquire approximately 21% equity in DenseLight, a Singapore-based optical communications component manufacturer, along with one board seat, formally entering the core domain of high-speed optical communications. Leveraging its expertise in optical packaging, testing, and module integration, the company is aggressively entering the next-generation AI data center optical interconnect market, with revenue contributions expected to begin in the second half of 2027.

DenseLight, the Singapore-based target of this strategic investment, is an integrated device manufacturer with over 20 years of history, possessing full indium phosphide (InP) wafer epitaxy and process capabilities. Its core products include continuous-wave semiconductor lasers, gain chips, and semiconductor optical amplifiers—key components widely used in high-speed optical communications and data center networks.

Lite-On CEO Sen-Bin Qiu stated that the company has long specialized in optical packaging, testing, and assembly capabilities. By combining these with DenseLight’s front-end photonic chip technology, significant vertical integration synergies can be achieved. The two companies will jointly develop optical engines and optical modules, targeting next-generation 1.6T and 3.2T high-speed optical communications and co-packaged optics (CPO) architectures, seizing opportunities in rack-level optical interconnect solutions.

Lite-On noted that DenseLight’s manufacturing and R&D base is located in Singapore, positioning it within a non-China supply chain and offering strong geopolitical advantages. Current mass production primarily involves 100mW high-power lasers, with ongoing development targeting 200mW to 400mW output. Revenue contributions from related optical module products are expected to become significant from 2027 to 2028, aligning with the maturity of next-generation architectures.

Regarding its deepened power technology strategy, Lite-On previously acquired Nanjing-based Navitas Micro, a company specializing in micro DC-DC converters. The company explained that as high-voltage DC architectures advance, micro-converters have become critical components for stepping down high voltages to chip-level requirements. While Navitas Micro possesses excellent technology, it lacked market access. Lite-On will leverage its global footprint to rapidly enter the high-wattage, high-barrier chip-level power market, building a more comprehensive AI infrastructure product line.