Manufacturers of optical communication devices will see data center application shipments increase in 2H22

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Most of Taiwan’s optical communication device makers focusing more on data centers than 5G base station applications reported significant revenue improvements for the first half of the year and are expected to perform even better. in the second half thanks to continuous specification upgrades for data center solutions, according to the industry. sources.

Optical transceiver module specialist LuxNet, which suffered a net loss of NT$285 million (US$9.54 million) in 2021, saw its first-quarter 2022 deficit shrink sharply to 1. NT$8 million and recorded a net profit of NT$55 million in April-May. The company is believed to have returned to profitability in the second quarter of the year, with its June revenue jumping 41.25% year-on-year to NT$106 million.

LuxNet’s improved revenue and profit results primarily from increased shipments for high-speed 5G and data center applications, and its overall product portfolios will improve sharply in the coming months as US network chip vendors have outsourced assembly of more than 400G optical transceiver modules for data centers. company, the sources said.

East Tender Optoelectronics (EOC), dedicated to thin-film optical filters, reported that its June revenue rose 21% on the month to NT$21 million, and January-June sales increased 13 % year on year to reach NT$115 million.

But the company noted that revenue performance in the first half of 2022 still fell short of its growth target, mainly because telecom operators in China were slowing down the construction of 5G base stations due to high smartphone inventory. 5G amid sluggish consumer demand.

The company expects shipments and revenue to improve in the second half of the year as U.S. telecom carriers are on track to accelerate the build of 5G networks thanks to handsome government subsidies and as major data center operators continue to expand their operations.

Browave, specializing in optical transceiver components and interconnect solutions for data centers, achieved record revenue of NT$1.67 billion for the first half of 2022, up 53 .4% YoY, primarily driven by consumer shipments to key customers moving to 400G solutions.

The company expects shipments to data center customers to increase 30% in 2022 and will enter volume production of 800G solutions in the second half of the year. In addition, its US shipments of more 10G transceiver solutions for cable TV applications will also steadily increase, while CATV operators will continue to upgrade their broadband network specifications.

TrueLight saw January-June revenue drop 17.8% year-on-year to NT$563 million, mainly due to a slowdown in 5G base station construction in China and a still relatively low ratio for shipments to the United States and Europe.

The company is cautious about its third-quarter performance, with sales likely to continue to decline sequentially, given weak demand for its proximity sensors for handsets despite clear visibility into fiber solution orders through the month. home 10G PON (passive optical network).

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