August 28 — A Chinese supplier of optical communication modules has announced plans to invest $150 million to expand its manufacturing capacity in Malaysia. The goal is to ensure a steady supply for key international clients and reduce potential risks from changing global trade conditions and supply chain disruptions. The company also reported a significant decline in profits during the first half of the year.
The company intends to lease facilities in Penang to establish a production line for high‑speed optical modules operating at 800 gigabits and 1.6 terabits, and purchase land within Bandar Cassia Tech Park to develop a comprehensive industrial complex. Construction is expected to take approximately 27 months.
This new industrial park will provide ample space for future product development, capacity growth, and supply chain expansion for the Malaysian factory, the company noted.
“This investment will enhance our manufacturing capabilities for next-generation optical modules in Malaysia, better addressing rising demand from international AI data centers, cloud service providers, and telecom equipment companies. It supports a business model of ‘domestic R&D, overseas manufacturing, and global sales,’” the company explained.
Optical modules are essential communication components that enable bi-directional conversion between electrical and optical signals, providing high-speed data connections for servers and GPU clusters. The 800G modules are standard in AI data centers, while the larger 1.6T modules mainly serve massive AI computing systems.
The company’s Penang facilities include a Phase I plant that produces optical modules from 10G to 400G, and a Phase II facility launched last October, focused on R&D and manufacturing of 800G and 1.6T high-speed optical modules.
On the same day, the company reported its net profit dropped 73% to approximately $1.4 million in the first half of the year, compared to the previous year. Meanwhile, revenue increased by 38% to around $102.6 million. The decline in profit was mainly due to foreign exchange losses and increased capital spending related to ongoing strategic initiatives and R&D investments.
The company counts major cloud services providers and AI solution companies among its international clients. During the first half, it sold 130,000 units of high-speed optical modules at 400G and above, generating nearly $50 million in sales revenue, which accounted for nearly half of its total income.
Its shares traded at CNY 328.30 ($48.85) as of 1:50 p.m. in Shenzhen today, having increased more than double since hitting its lowest point this year on July 21.