- Register
- Login
20°C
- Article
- . (0)
- Related content
After having experienced sluggish sales for more than one year, the China optical communication market is gradually gaining growth momentum, promoting customers there to place short lead-time orders with Taiwan suppliers of optical communication products to replenish their depleting inventories, according to industry sources.
The sources said that the prices of 2.5G PON (passive optical networks) products have lingered at low levels due to price-cutting competition from China suppliers, and there exists little room for the prices to drop further. This has driven China-based companies to turn back to Taiwan makers for the supply of 2.5G PON and GPON (gigabit-capable PON) equipment usually with better quality and higher technology than those counterpart models available in China.
The sources continued that Taiwan suppliers TrueLight and LuxNet have received new orders from China’s clients, helping to boost their order visibility to 2-3 months. But as price quotes remain at low levels, whether the companies can turn profitable in the fourth quarter remains to be seen.
TrueLight posted a net EPS loss of NT$2.75 (US$0.0911) for the third quarter of 2017, and a combined net EPS loss of NT$6.63 for the first three quarters of the year. LuxNet saw its revenues for the third quarter surge 52.5% sequentially, but its gross margins for the quarter still showed a negative 10.17%, with its net EPS loss for the first three quarters reaching NT$5.44.
Industry sources said that despite a gradual recovering 2.5G PON market in China, future business growth will hinge greatly on the development and volume shipments of more advanced products, such as optical parts and components for datacenters and vertical-cavity surface-emitting laser (VCSEL) products.
In this regard, TrueLight has started shipments of 10G products, and is actively developing 25G products for datacenters and 3D-sensing VCSEL products for facial recognition applications. The company plans to boost the ratio of revenues from the cloud service sector.
As to LuxNet, it will focus sales on high-speed optical transceiver components and modules for use in datacenters, with PON and P2P (point to point) products at the second tier. The firm’s shipments of 100G optical communication components to support datacenters are expected to grow gradually in the second half of 2017.
- China AMOLED panel capacity expansion forecast, 2016-2020
This Digitimes Research Special Report examines the China AMOLED industry, focusing on the expansion capacity of the makers, the current implementation plans of major smartphone vendors in the market and the technological hurdles faced by the China makers.
- Global AP demand forecast, 2017-2020
Digitimes Research expects global AP shipments to surpass the 1.9 billion mark in 2017, with smartphones remaining the main application. Qualcomm will be leading the market in 2017, as other players continue playing catch up and scramble for funds to invest in more diverse applications.
- Global notebook shipment forecast, 2017 and beyond
This Digitimes Special Report examines key factors in the notebook industry, including products, vendors and ODMs, that will affect total shipments in 2017 and through 2021.
- Register
- Login
