TAIPEI (Taiwan News) — Lite-On Technology Corp. announced an investment in Singapore's DenseLight Semiconductors Pte Ltd. as it seeks to tap growing demand for optical technologies used in AI data centers.
Under the agreement, Lite-On will acquire about a 21% stake in the optical communications component provider for NT$1.1 billion (US$34.3 million) and obtain one board seat. Optical communications technology uses light signals to carry data, allowing information to be transmitted at high speeds over long distances through optical fibers, according to CTEE and Commonwealth Magazine.
The partnership will combine DenseLight’s expertise in indium phosphide (InP) laser technology with Lite-On’s experience in optical manufacturing and testing. InP is a compound semiconductor material valued for its efficiency in next-generation, high-bandwidth devices, according to the Department of Industrial Technology.
Lite-On Chair Tom Soong (宋明峰) said the rapid expansion of AI applications is accelerating upgrades to global infrastructure, making optical communications a key technology for next-generation data centers and high-performance computing systems. The investment will help Lite-On strengthen its optical communications business and capture new opportunities.
The two companies will cooperate in product development, market expansion, and supply chain coordination. Their focus will include high-speed optical components, optical modules, optical engines, and rack-level optical interconnect solutions.
