15 April 2020
Source Photonics raises $40m in equity funding
Source Photonics Inc of West Hills, CA, USA (which provides optical connectivity products for data centers, metro and access networks) has secured equity funding of more than $40m to support its growing data center and 5G business, and to enhance its existing low-cost as well as advanced solutions.
The firm reckons that new investment amidst the COVID-19 pandemic reflects the investors’ confidence in its long-term vision and business strategy. The latest funding will be used to further expand its 5G product line and upgrade its own indium phosphide (InP) laser chip production facilities while continuing to strengthen the R&D of its low-cost solutions and next-generation technologies.
“We value our investors’ trust and confidence in Source Photonics especially during these challenging times of global health and economic crisis,” says CEO & president Weiming Li. “Their enthusiasm and confidence in us prove that our team is on the right track as we focus on responding rapidly to our customers’ needs and developing advanced technologies to cope with the increasing demand for bandwidth,” he adds. “Our next step is to seize the global market opportunity as demand for networking and cloud services skyrocketed as millions of people around the world are working and learning from home.”
Source Photonics’ factory in Chengdu, China, has been operational since early February. The firm says that its proactive response to opening its production earlier than most companies in the region during the pandemic proved its commitment to supply chain continuity as its products are deemed essential to Internet and telecoms systems. In addition, its factories in Jintan, mainland China, and in Hsinchu, Taiwan, are also up and running.
Source Photonics’ integrated manufacturing approach is critical in managing the entire value chain from laser production through transceiver assembly. With the latest funding, the firm reckons that it is well positioned to enhance speed to market, yield manufacturing innovations, and offer flexibility to customers needing to address the increase in demand for more bandwidth.