Source: Laserfair.com  10^th Aug 2026

As AI computing power surges, photonic chips—the "heart" of optical communications—are enjoying an unprecedented moment in the spotlight.

In late July 2026, within just three days, a wave of good news swept across the photonic chip sector: Etern Co., Ltd. secured a massive order worth RMB 1.133 billion through its subsidiary; Cambridge Industries Group (CIG) committed an RMB 800 million fund to photonic chips; and WinCO closed a financing round of over RMB 100 million.

Large orders, large funds, and large financing are advancing together like a "troika," underscoring the sector's strong momentum and signaling that China's photonic chips are accelerating their push past high-end barriers and onto the center stage of the global supply chain.

Major Order: RMB 1.133 Billion Deal Lands as AI Computing Power Creates "Chip" Opportunities

The explosive growth in AI computing demand is translating directly into hard cash for photonic chip makers.

On July 30, Etern Co., Ltd. announced that its controlling subsidiary Etern-laser Optoelectronic Technology had received high-power laser chip purchase orders from Customer A and Customer B over the past month, with a combined value of approximately RMB 1.133 billion.

Specifically, the order from Customer A is worth RMB 542 million, with a performance period extending to December 10, 2027. The order from Customer B is approximately USD 87 million, equivalent to RMB 591 million, with a performance period until January 3, 2028. Although customer identities remain confidential, these two orders are undoubtedly the strongest recognition of the company's technical capabilities.

If executed smoothly, the orders will have a significant positive impact on Etern's performance in 2026 and 2027. Behind this lies the upstream transmission of delivery pressure from high-speed optical modules for AI. Industry forecasts indicate that global EML (electro-absorption modulated laser) production capacity will double by the end of 2026 compared with 2025.

Big Fund: RMB 800 Million to Build Out the Industrial Chain Ecosystem, with M&A Ambitions Behind the Scenes

If orders represent the immediate dividend, then establishing a fund is about locking in future victories. On July 28, optical module leader Cambridge Industries Group (CIG) revealed that it plans to invest RMB 800 million as a limited partner to jointly establish the Jiaxing Hujiang Optoelectronics Industry Fund LP, accounting for as much as 99.9988% of the fund.

The RMB 800 million will focus on advanced manufacturing sectors such as integrated circuits and artificial intelligence, particularly optical components, photonic chips, and core IC companies. At the same time, the agreement allows up to 20% of the capital to be invested in other private equity funds or to participate in listed-company private placements and overseas M&A.

Analysts believe CIG's move kills three birds with one stone. First, it enhances self-reliance by investing in domestic photonic chip startups and safeguarding the security and resilience of its own supply chain. Second, it leverages synergies by deeply tying investment targets to the company’s R&D in high-speed optical modules, LPO (linear-drive pluggable optics), and CPO (co-packaged optics), locking in next-generation optical interconnect core components ahead of time. Finally, it lays the groundwork for overseas M&A, leaving open the possibility of acquiring quality technology targets abroad through the fund to achieve technological leapfrogging.

Big Financing: RMB 100M+ Round Powers Domestic IDM Breakthrough

Driven by both capital and market forces, hard-tech photonic chip companies are accelerating their rise.

On July 30, WinCO (Zhejiang Huachen Xinguang Technology Co., Ltd.), a domestic IDM laser chip maker, announced the completion of a financing round exceeding RMB 100 million. The round was led by Cowin Capital, with participation from Zhangjiang Yaokun and Hongshan Capital, along with follow-on investments from existing shareholders. The funds will be used primarily to strengthen reliability testing capabilities for mass-produced chips.

According to the company, WinCO has firmly pursued the IDM (Integrated Device Manufacturer) model since its inception, integrating design, manufacturing, packaging, testing, and sales under one roof. While asset-heavy, this approach significantly safeguards chip yield and supply security.

Notably, WinCO's core product—a 1000mW 974nm/976nm pump laser chip—has passed rigorous testing, with optoelectronic performance and reliability benchmarked against U.S. equivalents, and manufacturing costs at only 50% of foreign products.

The product is scheduled to enter mass production and global sales in the second half of 2026, primarily for signal amplification in backbone networks, core networks, metropolitan area networks, submarine fiber-optic communications, inter-satellite laser links, and AI data center interconnect (DCI) applications.

Meanwhile, leveraging its IDM capabilities, the company is actively developing ultra-high-power InP CW laser chips for CPO products, targeting import substitution in high-end photonic chips.