A POET executive stated that AAOI's ownership of an in-house indium phosphide laser source is a significant differentiator, as laser supply is expected to remain constrained for several years and future networks require substantially increased laser power. This in-house fabrication insulates AAOI from industry-wide component shortages and positions it for high-power architectures like ELSFP, providing a multi-year runway before 1.6T optics fully take over.
In-house indium phosphide laser fabrication provides a critical supply chain advantage for AAOI, insulating it from multi-year component shortages in high-speed optical transceivers.