Cambridge Technology Says 800G Modules Have Begun Mass Shipments

Cambridge Technology (06166) said its 800G pluggable modules have passed certification from multiple major customers and have started mass shipments, while 1.6T products are expected to enter mass production in the second half of this year, according to ETNet. Chairman Huang Gang disclosed the update at an investor relations event on Sept. 4. The company also said 3.2T products are progressing as planned, and that the current 800G price range is $300 to $380, with an average of about $350. It expects the annual decline in prices to remain limited. On NPO/CPO-related projects, Cambridge Technology said it is prioritizing an external light-source solution, which will soon launch a prototype, and that it has customized cooperation projects with leading customers. An integrated laser NPO/CPO solution is expected to launch in the second half of next year. The company said existing orders are mainly overseas, and it expects overseas factory capacity to account for more than half of total capacity in the future. Its Mexico production base is expected to begin operations in early next year. It added that its target of no less than 6 million in annualized capacity before the end of this year has already been achieved ahead of schedule, with room to reach the 10 million level within this year and further capacity growth next year. Cambridge Technology also said the rising share of 800G products in this year's optical module revenue has lifted gross margin, and it expects gross margin to remain at a relatively high level. It said gross margins for new customers are broadly in line with existing customers, while price pressure from leading North American cloud clients is being offset by falling costs in the domestic supply chain.