Giovanni Barbarossa: Yes, of course, we read about it. We know Elon Musk is worried about it about the transformers for the transformers. I mean that’s a very well-known challenge. We are keep – we keep focusing on ultimately what’s driving our demand? Recently, you’ve seen that the optical bandwidth required by GPU is actually growing. It’s not only the number of GPUs per cluster is growing. Demand is strong in terms of number of GPUs. But what’s very important for us is the increase in optical bandwidth required by GPU, that’s driving the need for 1.6 data and beyond and that will continue for quite some time as the GPU require more and more bandwidth for their input-output. So that’s what’s really the fundamental drivers for our growth, which I don’t think they are going to change.
And of course, there are – there could be challenges in infrastructure, from an infrastructure standpoint, but those will – it’s not really up to us to solve. But we – obviously, we may be dependent on them. But the fundamental drivers for our growth will remain unchanged.
Chuck Mattera: Thank you, Giovanni. Jed, it’s particularly focused on the total energy required by the system. Hope that was helpful, Jed?
Jed Dorsheimer: It is. Thank you, Chuck. I appreciate, and thanks Giovanni.
Operator: Thank you. One moment for our next question. And our next question will come from the line of Mark Miller from the Benchmark Company. Your line is open.
Mark Miller: Congratulations on your progress. I was just wondering if you can give us some color on ROADMs and also are there any new opportunities coming along for VCSELs and where are you positioned in that market?
Chuck Mattera: Okay, good morning, Mark. Thanks for your question. We’ll take it in two-parts. First, Beck will take the ROADM question. Giovanni will address the VCSEL question. Beck?
Beck Mason: Yes. Thanks, Mark. I’m actually really excited you asked that question because one of the most important new trends in ROADMs is really the drive towards C+L network deployments, which have been kind of on the drawing board for many years and are now finally really coming and being deployed. And one thing that we have that really no one else in the industry has is a true C+L ROADM. So that is – there’s two bands in the optical communication space that we use in long-haul DWM communication, one is the C-band and one is the L-band. And by expanding to both C+L, we double the capacity in the fiber. So all of the new networks being deployed today include both C and L. And we’re the only company that has a ROADM solution that actually covers both bands simultaneously in a single part, and that’s driving a lot of upside opportunity for us as we go forward.
The first place we see that really emerging is China, but we know that’s very important for the hyperscalers in North-America and some of the higher capacity build-out. So we are excited about what’s going to happen in the future in ROADMs. Now the nature of the network is evolving, but that is still evolving to one that is really strongly dependent on use of ROADMs in terminals and boxes and other applications in the network. So we think that’s a positive long-term driver for us.
Mark Miller: Okay, great. From the telecom systems or to the Datacom laser, VCSEL. Giovanni?
Giovanni Barbarossa: So on the VCSEL, on the OFC, we reported the progress that we have been making on the development of 200G VCSELs, which we think would be a game-changer in the industry as many, many customers, well as generally even competitors kind of ruled out the possibility for VCSELs to go even above beyond 100G. So that’s a very exciting – the good news is that we also had our main competitor, probably the only competitor that we have on this space, they’re also reporting progress on it, which is very positive for the industry because these industry will need at least two suppliers to support the growth. And then we are also working on 400G VCSELs for the future, you know, it’s something that we didn’t sight. And so we’ll keep the roadmap going.
And if you ask in general about VCSELs, I also wanted to mention the progress of multi-junction VCSEL for behind displays applications, which is that required for increase the power coming through the display in some cases, some user cases. So that’s also something that we have been working on and will provide further growth for the total line, which is already experiences – experiencing today with the 100G VCSELs ramp, an incredible growth over the past several quarters and in the next few quarters too.
Chuck Mattera: Thanks, Giovanni.
Mark Miller: Thank you.
Chuck Mattera: Thank you, Mark.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Ananda Baruah from Loop Capital. Your line is open.
Ananda Baruah: Yes, good morning, guys. Thanks for taking the question. Really appreciate it. I guess a little bit bigger picture on transceivers, you know, as you guys progress – and as the market progresses from 800 to 1.6, 2.2. Interested in understanding you know, any net-new technical hurdles and challenges sort of that could occur necessary to be successful there? And I guess any, I’m going to call them business-related dynamics that are going to increasingly manifest that will take to be successful there. And wondering if you guys have a share gain opportunity in that context and what’s that whole dynamic could look like? And then I have a quick follow-up. Thanks.
Chuck Mattera: Lee?
Lee Xu: Hi, Ananda. Thanks for the question. This is Lee Xu. So this is a very key question. Thanks for asking that. For this development, it is indeed getting higher and higher data rate. The technical challenge is getting more complex and – but to us, there are several advantages also that we got to use a higher portion of our internal lasers and components. And also we found that the competition landscape becomes there are fewer people, right? So for example, for the current 800G shipment, so far is only a small number of companies that would be able to support that in high volume and we expect similar things on the 1.6T and 3.2T. So we do think that we can gain market share in over the next few years.
Ananda Baruah: Your market. Oh, sorry, go ahead.
