Every additional watt consumed inside a data center increases cooling requirements. That's why #OpticalInterconnects# are becoming essential for scaling AI infrastructure while improving energy efficiency. Discover how our DFB #LaserArrays# are powering the AI Infrastructure of tomorrow!

$SIVE could become a substantially larger business as AI infrastructure adopts optical connectivity. What keeps me bullish is the combination of its laser technology, the companies developing products around it, and the manufacturing capacity now being planned. $SIVE Indium phosphide lasers provide the light used in optical data connections. Its portfolio includes 70 mW and 100 mW devices for 800G and 1.6T transceivers, alongside laser arrays for co-packaged optics and optical I/O. That gives the company exposure to several stages of the industry’s development. The detail I think deserves considerably more attention is how these devices are manufactured. $SIVE process allows full optical testing while the devices are still on the wafer, before they are cut into individual chips. Its laser arrays also reduce the alignment steps required during assembly. The company identifies both as ways to improve manufacturing efficiency and reduce costs. At millions of units, those details become commercially significant. Identifying defective devices earlier and simplifying assembly can improve the economics of supplying an entire product generation. This is where I see an important part of the technology’s potential: performance that is designed to be manufactured repeatedly, efficiently and at scale. The planned Glasgow expansion makes that ambition concrete. $SIVE has announced a $30 million investment targeting capacity for more than 100 million CW DFB lasers annually, with the expanded facility expected to become operational in Q4 2027. That capacity would complement its external manufacturing partners, giving the company several routes to support growing customer volumes. The commercial relationships help explain why management is preparing for that scale. $JBL is developing a 1.6T LRO transceiver using $SIVE lasers. @Ayar has demonstrated $SIVE arrays in its SuperNova light source. $GFS has announced plans to incorporate $SIVE arrays into silicon photonics reference designs and make them available through its SCALE platform. Together, these relationships create potential routes into pluggable optics, optical I/O and co-packaged systems. The $GFS relationship is especially interesting to me. Inclusion in reference designs could make $SIVE technology accessible to multiple companies developing different products. Each successful adoption could extend the commercial return on the underlying technology. That is where the scaling potential becomes compelling: a common technology platform supporting multiple customers, followed by repeat shipments as their products enter production. $SIVE is already reallocating resources toward that transition, prioritizing upcoming product ramps over development work. Management expects the shift to accelerate through 2027. If successful, it could allow revenue to grow substantially faster than the engineering effort required for each additional sale. $SIVE has a credible opportunity to commercialize the same underlying expertise across several large optical markets.

$SIVE announces a $3.4M development program with SemiNex! For CPO, DFB laser arrays, and optical amplifiers. Early production is targeted H2 2027 (in line with early scale up CPO timelines) Seemed weird to me at first given product overlap, since SemiNex is a much smaller Series B company... But then I got reminded of a less explicit version of $SPCX + Cursor relationship (derisking by working together first). There's probably something interesting Sivers found in this company.

We're excited to announce a strategic collaboration with @GlobalFoundries to develop advanced silicon photonics solutions for the rapidly growing AI infrastructure market. Our laser arrays will support next-generation optical connectivity architectures, including CPO, LPO, and other emerging data center interconnect solutions, while complementing GlobalFoundries' silicon photonics platform and SCALE™ optical engine offerings targeting a projected $25 billion pluggable optics market by 2030. For full details, visit:

US Gov to take 1% stake in $GFS, and award them $300m for the US CHIPS ACT. This is actually a strong read through on $SIVE / $LITE, given this CHIPS ACT is specifically aimed at advancing CPO + Silicon Photonics. (For reference, Sivers and Lumentum were the only two public laser suppliers named in GFS presentation slides. Sivers laser arrays was named recently as a reference design in Globalfoundries SCALE for CPO). Per US Gov announcement: "GlobalFoundries will receive up to $300 million to accelerate domestic CPO R&D by two to three years" (NIST) Never thought we'd see the US Gov / $INTC foundry playbook for CPO in specific...