Coherent (COHR) Status update summary

Strategic growth drivers and market opportunities

• Identified $50B+ current market opportunity in data center communications, with new growth engines adding $20B+ in incremental TAM/SAM by 2030.

• Four new growth engines: optical circuit switch (OCS), co-packaged optics (CPO/NPO), Multi-Rail systems, and advanced thermal solutions, all ramping in the near term.

• Partnership with NVIDIA represents a multi-billion dollar, multi-product supply agreement through the end of the decade, focused on CPO for both scale-out and scale-up.

• Significant investments in indium phosphide capacity, with plans to double capacity this year and again next year, primarily through 6-inch wafer expansion in Texas, Sweden, and Switzerland.

• Thermal management solutions, including ThermaDite, diamond cold plates, and thermoelectric coolers, target a $2B SAM by 2030, with first revenues expected in the second half of next year.

Technology and product innovation

• Broad portfolio in pluggable transceivers, with a robust roadmap to 800G, 1.6T, 3.2T, and 6.4T, and leadership in new high-density form factors like XPO.

• Deep vertical integration in CPO/NPO, offering all critical optical components, including lasers, isolators, thermoelectric coolers, and fiber attach units.

• Demonstrated industry-firsts: 400G silicon photonics, 6.4T socketed CPO, 2D VCSEL arrays, and indium phosphide-based CPO.

• OCS TAM doubled to $4B due to broader and faster customer adoption, with differentiated liquid crystal technology and strong software integration.

• Multi-Rail transport platform enables 4x traffic in the same space with sublinear power scaling, winning multiple industry awards.

Manufacturing scale and supply chain resilience

• Operating four indium phosphide wafer fabs globally, with 6-inch wafer production driving efficiency and scale.

• Doubling InP device production capacity in 2026 and 2027, with new 6" lines in Texas, Sweden, and Switzerland.

• Long-term strategic agreements with substrate suppliers ensure visibility and security of indium phosphide supply.

• High-volume production of InP EMLs, CW lasers, and VCSELs, with strong customer engagements and multi-year orders.

• Unique materials expertise and proprietary recipes, such as ThermaDite, create high barriers to entry and competitive differentiation.