{"title":"Dongshan Precision vs Innolight: Optical & photonic interconnect compared","url":"https://www.frontiertechintelligence.com/compare/dongshan-precision-vs-innolight","comparison":"Dongshan Precision ranks 13 on the AI Infra 100 with a score of 98; Innolight ranks 29 with 94. Dongshan Precision is ahead on progress and technology. Innolight is ahead on leverage. Level on deployment, production, commercials, positioning and firepower. Both are based in Suzhou, China. Dongshan Precision is named in 1 signals and Innolight in 10.","companies":[{"name":"Dongshan Precision","url":"https://www.frontiertechintelligence.com/companies/dongshan-precision","city":"Suzhou","country":"China","stage":null,"founded":null,"last_round":null,"positioning":"Scoped the same way as TRUMPF, this is one row on the parent with the acquired businesses as aliases. Dongshan is a PCB and precision components maker that bought its way into AI optical interconnect and now claims to be the only company anywhere with full R&D-to-production capability across PCB, optical chips and optical modules. The board approved the Source Photonics acquisition on 2025-06-13 through subsidiary Hong Kong Chaoyi, at up to USD 629 million for 100 percent of the equity plus up to USD 58 million for ESOP interests, with a further subscription of up to RMB 1 billion in convertible bonds, totalling close to RMB 6 billion. FY2025 group revenue passed RMB 40 billion for the first time at RMB 40.125 billion, up 9.12 percent, with net profit attributable RMB 1.386 billion, up 27.67 percent. The traditional electronic circuits business, built on MFLEX which holds the world's second-largest FPC capacity, contributed RMB 25.62 billion, up 3.3 percent, providing cash flow while the new businesses grew. Q1 2026 is where the acquisition shows: revenue RMB 13.138 billion, up 52.72 percent, net profit RMB 1.110 billion, up 143.47 percent and 581.80 percent sequentially, gross margin up 5.19 points to 19.33 percent and net margin up to 8.56 percent. Source Photonics contributed 16.02 percent of revenue and 52.92 percent of profit in that quarter, against 3.58 and 22.69 percent for full-year 2025. On the optical side it runs an IDM model spanning indium phosphide substrate th","assessed_in":{"domain":"AI Core","list":"AI Infra 100","rank":13,"score":98,"tier":"member","scores":{"gate_ne":["firepower"],"leverage":8,"position":10,"progress":10,"firepower":10,"commercial":10,"deployment":10,"production":10,"technology":10},"why":"Through Source Photonics, Dongshan Precision develops and manufactures optical chips, CW lasers, and high-speed optical transceiver modules, including 800G and 1.6T products for AI server interconnects.","segment":"Optical & photonic interconnect","layer":"Networking & interconnect"},"signals_total":1,"facts_total":18},{"name":"Innolight","url":"https://www.frontiertechintelligence.com/companies/innolight","city":"Suzhou","country":"China","stage":null,"founded":null,"last_round":null,"positioning":"Innolight (Zhongji Innolight, SZSE 300308) is the largest optical transceiver maker in the world and the single most important name previously absent from the registry's interconnect coverage. FY2024 revenue RMB 23.86bn (up 122.6 percent), net profit RMB 5.17bn (up 137.9 percent); FY2025 revenue RMB 38.24bn (up 60.3 percent), net profit up 108.8 percent, transceiver gross margin rising 34.65 to 42.61 percent. Q1 2026 was extraordinary: revenue RMB 19.5bn (USD 2.9bn, up 192 percent), net profit RMB 5.7bn (USD 850m, up 262 percent) at a record 46 percent gross margin, that single quarter's profit exceeding all of 2024. Overseas revenue, predominantly North America, is above 86 percent. It shipped roughly 3 million 1.6T units in FY2025 for more than 50 percent global share and locked up around 70 percent of Lumentum's 12-million-unit EML chip capacity; about 35 percent of 800G shipments in 2026. The most diversified of the Chinese three: self-developed silicon photonics chips at 95 percent yield cutting costs 30 percent, 1.6T already shipping on silicon photonics, plus active NPO, CPO and optical circuit switching. Momentum is 4 rather than 5 because it was added to a Pentagon list, and CPO is a structural threat to the pluggable model even if large-scale replacement is seen as distant. Named customers NVIDIA, Google and Microsoft.","assessed_in":{"domain":"AI Core","list":"AI Infra 100","rank":29,"score":94,"tier":"member","scores":{"gate_ne":["firepower"],"leverage":10,"position":10,"progress":8,"firepower":10,"commercial":10,"deployment":10,"production":10,"technology":8},"why":"Innolight develops and sells high-speed optical transceiver modules, including 800G and 1.6T, and silicon photonics chips for data-center and AI-cluster interconnects.","segment":"Optical & photonic interconnect","layer":"Networking & interconnect"},"signals_total":10,"facts_total":11}],"note":"Assessment by Frontier Tech Intelligence; facts and signals carry their sources."}