supplierScore 35/100Watch
Coherent developing high-power CW laser and multiple optical components for CPO; internal sourcing of lasers, isolators, thermoelectric coolers, fiber attach units
Jim Anderson· Coherent Corp· AI· 2026-05-06· about Coherent Corp (COHR)
“We can also bring 200G and, in the future, 400G VCSELs... We can provide the external laser source (ELS) module, and within that, we have almost all key optical ingredients in-house—not just the laser, but isolators and thermoelectric coolers. Customers view this as a strength because we are not dependent on others for those technologies. The fiber attach unit—which connects the switch chip or XPU to the faceplate or to the ELS—we can provide that entire assembly as well, including lens arrays and polarization-maintaining fiber.”
Why it matters
Coherent is integrating vertically across the entire CPO subsystem—lasers, coolers, isolators, fiber attach, and assembly. This reduces dependencies on external suppliers and creates switching costs for customers. Competitors must match this breadth or accept component-level partnerships.
Investment implication
Coherent's internal CPO component manufacturing reduces opportunities for standalone EML suppliers, isolator vendors, and thermoelectric cooler manufacturers in CPO applications. However, companies supplying raw materials (indium phosphide, optical fiber, semiconductor substrates) and specialized equipment should see increased demand from Coherent's expanded internal production.