OE Solutions have produced its own laser diode (LD) and will begin exporting them to China, the company said Monday.
The South Korean optical transceiver maker is planning to sell them through its subsidiary in Taiwan, formed last year, to an unnamed Chinese counterpart.
It is expecting revenues of 10 billion won from the sales of the LD within the year.
The LD market is dominated by Japanese firms Mitsubishi and Sumitomo and US company Broadcom.
Despite the export deals, it will take sometime for the company to apply the laser diode to its own optical transceiver, a company spokesperson said.
Optical transceiver, as it name implies, transmit and receive light and convert them to electric signals.
Laser diode is used to shoot laser that is received by a photo diode that absorbs it and turn it to electric signals. The laser passes through the optical cable to reach the photo diode.
OE Solutions was producing laser diode at its semiconductor line in Gwangju. It secured 26.9 billion won in funding from issuing shares. 18 billion is being spent on expanding the line for optical materials.
The company posted 58.3 billion won in operating profits and 210.3 billion won in sales last year. Profits were much higher than 2018’s 8.2 billion won thanks to high demand from the roll out of 5G networks by South Korean telcos.
OE solutions posted 18.9 billion won in sales in the first quarter this year and 25.5 billion won in the second quarter. Sales is expected to increase in the remainder of the year from pent-up investment caused by the COVID-19 pandemic.