Demand in the optical communications market is increasing, and Veeco has received over US$250 million in equipment orders

On May 5, semiconductor process equipment manufacturer Veeco announced that the company had received new equipment orders totaling more than US$250 million (approximately RMB 1.81 billion) from multiple customers.

The equipment ordered this time covers many of Veeco's core products, including Spector series ion beam deposition systems, Lumina series metal-organic chemical vapor deposition systems (MOCVD) and WaferEtch wet processing systems. These equipment are mainly used for the production and manufacturing of indium phosphide lasers.

According to order planning, the delivery of related equipment will begin in 2026, and is expected to enter the peak delivery period in 2027. Veeco said that the driving force for this purchase mainly comes from the rapid development of the silicon photonics field, especially the urgent demand for 800G and 1.6T optical transceiver modules in ultra-large-scale data centers. As a core component, the market demand for indium phosphide lasers is growing rapidly.

In the current AI infrastructure construction, as the data transmission rate continues to increase, traditional copper cable interconnection faces huge challenges in terms of power consumption and thermal management. This has prompted the industry to accelerate its shift to optical interconnect solutions. It is reported that with the explosion of the high-performance optical module market, the manufacturing of indium phosphide lasers has become a key link in the supply chain. Currently, this field is facing bottlenecks such as limited qualified production capacity and complex process integration. The compound semiconductor process technology provided by Veeco just fills this market gap.

At the technical application level, Veeco's Spector ion beam deposition system is widely used in the production process of 800G and 1.6T optical transceivers. This equipment can prepare high-performance, low-absorption laser cleaved surface coating to ensure stable operation of the laser under high-power conditions.

Adrian Devasahayam, senior vice president of Veeco, said that through its differentiated ion beam, MOCVD and wet process technology combination, the company can help customers increase the output of indium phosphide lasers while ensuring product performance and reliability. He pointed out that the conclusion of this order is based on the company's long-term partnership with customers and reflects Veeco's technical strength in supporting the evolution of the optical interconnection market.

In addition to the deposition process, Veeco's Lumina platform also plays an important role in this order. The platform leverages its patented reactor technology to enable epitaxial growth of indium phosphide with high uniformity and low defect rates. At the same time, the WaferEtch platform has been selected by customers for precision etching due to its advantages in process repeatability and production efficiency.

Revenue in the first quarter was 1.146 billion yuan, optical communications will drive the company’s continued growth

While announcing the latest order updates, Veeco also disclosed its financial performance for the first quarter of fiscal year 2026. Data show that the company achieved total revenue of US$158.3 million (approximately RMB 1.146 billion) in the quarter, a decrease from US$167.3 million (approximately RMB 1.211 billion) in the same period last year. In terms of profitability, according to U.S. generally accepted accounting principles (GAAP), the net loss attributable to the company was US$300,000 (approximately RMB 2.17 million); and according to non-GAAP calculations, the company recorded a net profit of US$8.9 million (approximately RMB 64.44 million), and diluted earnings per share were US$0.14.

Veeco CEO Dr. Bill Miller said that the semiconductor industry is entering a transformation period driven by AI data centers. Although the company's revenue fluctuated slightly in the first quarter, the company's product portfolio showed strong growth momentum as customers increased their investment in silicon photonics and optical communications. The company's current order activity is very active, which lays the foundation for continued growth in the future.

Veeco gave positive expectations for future performance trends. The company expects revenue in the second quarter of 2026 to be between US$170 million and US$190 million (approximately RMB 1.231 billion to 1.376 billion yuan).

In addition, Veeco reiterated its previously released full-year performance guidance, predicting that full-year revenue in 2026 will be between US$740 million and US$800 million. (Source: compiled by TrendForce Optical Communications)

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