Source: Laserfair.com  10^th Jan 2026

In 2025, the global laser industry’s M&A landscape witnessed a flurry of intensive moves.

During the year, Chinese laser enterprises made a giant leap from the previous phase of "product export" to full-fledged "capital and industrial chain globalization": Hymson Laser successively acquired Germany’s Xteg and invested in Switzerland’s Attolight, while Dongshan Precision took over Source Photonics, a world-leading optical module manufacturer. These cross-border M&A deals targeted technological barriers and high-end markets.

At the same time, inward industrial chain integration emerged as another main trend. Enterprises including Shijia Photonics, Sunshine Laser, ZMAX Optech, and Dogain Optoelectronic strengthened key links in the industrial chain through mergers and acquisitions, building a self-reliant and controllable ecological moat. Furthermore, cross-sector capital has entered the fray with industrial logic in mind, injecting new variables into the industry.

Nevertheless, amid the M&A wave, there were also cases of strategic consolidation and refocusing. For instance, Han’s Laser transferred equity stakes in its subsidiaries, and Inno Laser divested its overseas assets.

01

Cross-border Layout

In 2025, the pace of globalization of Chinese laser enterprises picked up significantly, with Hymson Laser’s "two-wheel drive" strategy emerging as a typical representative of this trend.

In February 2025, Hymson Laser, a leading manufacturer of laser cutting equipment in China, kicked off its global expansion by acquiring the laser plastic welding business of the Leister Group. The acquisition brought it the patented technology of "GLOBO Welding", enabling the company to gain a foothold in high-end manufacturing sectors such as automotive engineering and medical technology. On October 14, Hymson Laser went a step further to fully acquire Xteg, a Germany-based high-end laser cutting equipment and service provider.

A week later, on October 21, the co-branded "Hymson×Xteg" made its global debut at BlechExpo Germany, launching the HyLaserPRO series products specially designed for the European market.

Notably, Hymson Laser’s global layout is not limited to the equipment sector. On November 3, 2025, Hymson Laser Switzerland, its European holding company, announced the signing of an equity acquisition agreement with Attolight AG, a Swiss semiconductor testing enterprise.

Besides Hymson Laser, AFR Technologies also stepped up efforts in cross-border mergers and acquisitions continuously. In June, AFR Technologies acquired Wuhan Jabil under JBL for 17 million US dollars to strengthen its optical device packaging capabilities. In November, it further spent 1.64 billion yuan to acquire a 99.97% stake in Agix, gaining access to passive device technology compatible with the 1.6T optical communication market as well as core customer resources including Zhongji Innolight Technology. This move consolidated its advantages in the optical interconnection field of AI data centers.

In addition, Dongshan Precision, through its wholly-owned subsidiary Multek Group, acquired 100% equity interest in Source Photonics, a world-leading optical module manufacturer, marking its entry into the high-growth optical communication track.

By acquiring overseas targets, Chinese laser enterprises not only obtain core technologies, but also leverage local teams to integrate into the global supply chain rapidly, achieving the leap from "technology following" to "technology leadership".

02

Industrial Chain Vertical Integration

Driven by the core logic of localization substitution, mergers and acquisitions (M&A) for industrial chain integration in the laser industry were particularly intensive in 2025. Enterprises built full-chain competitive advantages and reduced external dependencies by acquiring high-quality upstream and downstream assets.

Among these activities, M&A transactions in the optical communication sector were especially frequent. On February 5, 2025, Shijia Photonics indirectly acquired a 53% equity stake in FSG for 326 million yuan through an equity-participating fund. After completing the industrial and commercial registration change on April 20, the company announced plans to directly acquire the controlling stake in FSG on June 27. Specializing in the R&D and production of MT/MPO ferrules—the core components of MPO high-density fiber optic connectors—FSG filled a critical gap in Shijia Photonics’ product portfolio.

Also in the optical communication field, Yangtze Optical Electronic disclosed the draft plan to acquire 100% equity interest in Wuhan SYS Optoelectronics for 158 million yuan on April 24, 2025. The transaction obtained approval from the Merger, Acquisition and Restructuring Review Committee of the Shanghai Stock Exchange on August 19.

In terms of industrial chain integration, Sunshine Laser made two strategic moves within the year. In July, it acquired a 56.03% equity stake in Comnect for 350 million yuan, gaining a foothold in the communication equipment manufacturing sector and breaking free from over-reliance on the domestic market by leveraging Comnect’ overseas channels. On December 10, the company completed the acquisition of a controlling stake in Lingxuan Precision, extending its business to the field of key components for aerospace and weaponry and achieving vertical expansion of the aerospace manufacturing industrial chain.

In addition, in September 2025, Dogain Optoelectronic acquired a 94% equity stake in Wuhan Ruijing for 94 million yuan. This merger brought together two National Little Giant Enterprises Specialized in Innovation, forming a powerful strategic alliance that will accelerate the localization substitution process of domestic high-power laser chips.

Through such vertical integration, Chinese enterprises are building a complete industrial chain spanning optical chips, optical components and optical modules. This not only reduces their reliance on external supply chains, but also enhances their initiative in global market competition.

03

Cross-border Integration

Amid the M&A wave sweeping the laser industry in 2025, cross-border mergers and acquisitions exhibited the feature of a two-way interaction: on the one hand, non-laser enterprises moved into the high-end manufacturing sector by acquiring laser assets; on the other hand, laser enterprises made strategic investments in emerging industries to achieve technology empowerment and scenario expansion.

A typical case of non-laser capital proactively entering the laser track is the cross-border acquisition by Shunketaiding. On November 18, 2025, this Shanghai-based information software service provider announced the completion of its acquisition of a 67.8% controlling stake in Shenzhen Tete Laser Technology Co., Ltd.

Founded in 2001, Tete Laser is a leading provider of laser automation equipment for the consumer electronics industry, with business also extending to semiconductor packaging and testing, silicon carbide materials, and the lithium battery new energy sector. After the transaction, 9 well-known institutional investors including Shenzhen Capital Group, Xiaomi Industrial Investment, and Fosun Capital will continue to hold minority stakes in Tete Laser.

In terms of laser enterprises extending their layout to emerging fields, Jizhi Laser’s cross-border strategic investment in Yuandian New Energy drew wide attention. On November 27, 2025, Shenzhen Origin Battery Co., Ltd. completed its equity change and brought in Shenzhen Jizhi Laser Technology Co., Ltd. as a strategic investor. Initiated by JPT Optoelectronics, Jizhi Laser has received investments from several listed companies such as Topband Co., Ltd. and Sunwoda Electronics. The participation of Jizhi Laser will accelerate the localization process of solid-state battery equipment and promote the application of laser technology in the new energy sector.

These cross-border M&A deals reflect the continuous expansion of laser technology application fields and the widespread recognition of its commercial value. With the increasing penetration of laser technology in new energy, semiconductors, biomedicine and other sectors, more capital and players outside the industry are being attracted to this track.

04

Capital Inflows and Outflows

Amid the M&A boom, the rational choices and risk aversion in the capital market also merit close attention. In 2025, the laser industry saw a number of notable equity transfers and failed M&A cases, revealing another facet of the industry integration process.

Some enterprises opted to proactively adjust their asset structures. For instance, on January 21, 2025, Han’s Laser announced the transfer of a 24% equity stake in its holding subsidiary, Han’s Semiconductor Testing Technology Co., Ltd., to Wang Jin and related partnerships. After the transfer, Han’s Laser still retained a 54% equity stake in the subsidiary; yet by introducing external shareholders, it reduced operational risks and concentrated resources on developing its core business of laser processing equipment. In addition, Han’s CNC sold assets related to special equipment for IC packaging substrates to its affiliated company Han’s Microelectronics for 12.18 million yuan, also to focus on its core business development.

In October 2025, Inno Laser announced its plan to sell certain assets of its wholly-owned subsidiary NU OPTO INC. to Thorlabs Inc. of the United States for 1 million US dollars. By divesting non-core assets, the company accelerated its layout in high-growth sectors such as semiconductors and new energy.

Furthermore, there were also frequent instances where M&A plans were forced to be terminated. Among them, Optowide announced on August 8, 2025 the termination of the major asset restructuring project involving the acquisition of 100% equity in SONT Technologies, citing that "it is difficult to reach an agreement on the specific plan in the short term due to changes in the market environment".

International M&A attempts by some enterprises also encountered setbacks.

These uncompleted transactions indicate that M&A and integration in the laser industry are confronted with multiple challenges, including valuation discrepancies, regulatory approval hurdles and shifts in the market environment.