POET Technologies Inc., a pioneer in optical interposer technology, has announced the completion of its acquisition of Super Photonics Xiamen (SPX), a significant move to strengthen its foothold in the artificial intelligence and telecommunications sectors.
Previously operated as a joint venture between POET and Quanzhou San’an Optical Communication Technology Co., Ltd. (SAIC), this acquisition grants POET 100% ownership of SPX. This strategic step aligns with POET’s vision of enhancing its global production capabilities and operational control.
Enhancing Manufacturing Capacity for AI Networks
The acquisition complements POET’s recent collaboration with Globetronics Manufacturing Sdn. Bhd. (GMSB) in Penang, Malaysia. Together, these facilities will offer a combined production capacity exceeding one million optical engines annually, catering to the high-speed demands of 800G and above transceivers required by AI clusters. This substantial manufacturing boost underscores POET’s commitment to remaining at the forefront of AI-powered network technologies.
Strategic Control and Future Plans
By securing full control of SPX, POET can now present a unified front to its Chinese customer base, streamline operations, and consolidate financial reporting. As part of its long-term strategy, POET plans to rebrand SPX to reflect its status as a subsidiary. The company may also consider merging SPX operations with POET’s existing wholly owned foreign enterprise (WOFE), POET Optoelectronics Shenzhen Co. Ltd.
Dr. Suresh Venkatesan, Chairman and CEO of POET, remarked, “This acquisition not only solidifies our operational control but also allows us to fully implement our ‘China Plus One’ strategy, ensuring diversification across production locations while maintaining strong ties with our Chinese partners.”
Financial Details of the Acquisition
The equity transfer agreement, dated December 31, 2024, outlines the terms for POET to acquire Sanan’s 24.8% equity in SPX for a total of $6.5 million. Payments are scheduled over five years, with the initial installment due in October 2025. Notably, Sanan retains the option to convert portions of the purchase price into common shares of POET under specific conditions.
In addition, POET has entered into an equipment purchase agreement with Sanan to acquire SPX’s production equipment for $3.8 million. Payments will be made quarterly over three installments, ensuring a seamless transition of operations.
Looking Ahead
With full ownership of SPX, POET is poised to expand its influence in the high-speed optical engine market while maintaining robust production capabilities across multiple regions. This strategic acquisition not only strengthens POET’s global presence but also reinforces its dedication to supporting the growing demand for AI-driven network technologies.
For a deeper dive into the intersection of AI and hardware innovations, explore The Era of AI Hardware: Innovations That Must Deliver or Fade Away.