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Leading innovator of monolithically integrated silicon photonics, Sicoya, will be setting up a new factory focusing on assembly and test of optical transceivers and engines. The factory installation includes anti vibration foundations and clean room facilities that will allow the factory to perform CMOS wafer level post processing steps and downstream packaging processes.
The operations located in Tianjin will serve the Chinese market and will manufacture transceivers and engines for the 5G wireless fronthaul and 100G/400G Ethernet based datacenter application utilizing Sicoya's monolithically integrated Silicon Photonics chips.
The double-digit compound growth of the optoelectronic market in China remains stable and revenues of some of the datacenter equipment suppliers in China grew 50-100% in 2018 and domestic 5G deployments will generate large contracts to the Chinese equipment suppliers according to recent research by Lightcounting.
According to Dr. Sven Otte, CEO of Sicoya, the Chinese market is very important for Sicoya and customers require local manufacturing and services at scale. International customers in the US or Europe will be served out of both the factory in Tianjin and complementary out of the factory in Berlin, Germany.
Otte believes the company needs to stay flexible with respect to the installed capacity of the two factories. In the past the industry tended to consolidate operations in one place to gain scale and utilization of overhead cost but today staying flexible and being able to react quickly to changes in the political environment becomes a key asset that customers appreciate.
