Technology: Semiconductor

IBK Capital has raised a total of $60 million for POET Technologies Inc. (formerly OPEL Technologies Inc.) to develop its opto-electronic technology.

POET is an innovator in chip-scale integration of photonics products for the sensing, data communications and telecommunications markets.  The company’s IP portfolio includes more than 34 patents and 7 pending.  Using advanced, wafer-level semiconductor manufacturing techniques, POET has developed the Optical Interposer, a technology which utilizes novel dielectric waveguides that allow the integration of electronic and photonic devices into the same chip-scale package.  This integration allows for dramatic cost reduction (reduces transceiver bill of materials cost by up to 50%) which translates into a 100% increase in transceiver module profit margin.  POET is the only company to introduce true chip-scale integration and wafer scale assembly and test of photonics devices that are flexible and scalable.

On August 20th, 2019, POET Technologies signed a deal to sell its wholly-owned subsidiary, DenseLight Semiconductors, to a private group based in Shanghai.  DenseLight is a manufacturing and design plant for integrated photonics platforms.  The sale of DenseLight represents an injection of up to US$30 million into POET and a significant reduction of POET’s operating costs which will transform POET’s balance sheet and enable the company to pursue a fab-light strategy.

POET is at an inflection point for rapid growth.  As part of the fab-light strategy, POET will focus on growing the Optical Interposer business in fast-growth, multi-billion dollar markets driven by internet traffic, datacenter development, 5G networks and the integration of photonics and network switching devices. The total available market POET is pursuing for integrated photonics is estimated to be US$20 billion by 2025.  System integrators such as CISCO and Broadcom, and data center providers such as Microsoft, Facebook, Google and Amazon represent about 70% of this total market.