Vital Optics（光智科技）said on November 6 that its controlling subsidiary Guangdong Xianrui Technology（广东先锐科技）had signed a long-term supply letter of intent with Coherent Corp.（高意）. The proposed supply of six-inch indium phosphide substrates from 2027 to 2029 has an estimated transaction value of no less than USD 601 million.
Under the agreement, the substrates would be supplied to Coherent’s facilities in Switzerland and Sweden. The companies may extend the proposed supply period by one year if they agree on pricing and volume.
Indium phosphide substrates are used in optical components for communications and data-centre applications. Coherent develops and manufactures products including lasers, optical transceivers and other photonic devices.
The parties plan to negotiate a definitive supply agreement covering technical specifications, qualification, pricing, delivery, quality and other terms. Guangdong Xianrui must also obtain an export licence for the six-inch substrates.
For Vital Optics, the proposed agreement would extend its cooperation with an international optical technology customer. The transaction value and delivery schedule will be determined by the final agreement, subsequent orders and export licensing.
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