LandMark Optoelectronics, which specializes in production of GaAs and InP epiwafers, has seen demand for 5G optical components from the telecom sector pick up in the second half of 2022, according to the Taiwan-based company.
Many of its telecom clients in Taiwan, China, the US and Europe have ramped up order placements with the company since the third quarter of the year, and the order momentum is expected to turn even stronger in 2023, according to LandMark's spokesman and chief financial officer Jerry Yang. He said telecom applications will score the largest revenue gains next year among its product lines.
Yang continued that China, in particular, is expected to significantly increase its demand for 5G and household optical fiber solutions in the next 1-2 years as it is promoting a new-generation FTTR (fiber to the room) technology in addition to boosting the density of its 5G base stations.
In terms of consumer applications, Yang said its shipments of InP laser diodes (LD) and photoelectric diodes (PD) are estimated to grow 15-20% on year in 2023, as such chips will also be used in true wireless Bluetooth headsets and AR/VR headsets from a major US client, in addition to serving 3D sensors for its existing smartphones.
Meanwhile, the company's shipments of si-photonics components are expected to see a significant specs upgrade in 2023, as a major US cloud services provider has switched to 800G from the mainstream 400G solutions and other peers are likely to follow suit soon. The higher-spec applications are expected to bolster the company's revenue gains next year, Yang noted.
LandMark's September revenues increased 2.42% sequentially and 124.9% annually reaching NT$225 million (US$7.14 million), and third-quarter sales rose 9.8% sequentially and 72.8% annually to a seven-quarter high of NT$661 million.
Telecom applications contributed 35-40% of its third-quarter revenues, compared to 15-20% for datacenter communications, and the remainder for consumer and industrial applications.
Article translated by Willis Ke
