fibeReality, LLC announced in a newly published study that recent, corporate-wide reorganization efforts by Lumentum looks like an admission of the company’s inability and/or unwillingness to efficiently run its internal factories and fabs. Risk of Lumentum Applying 3D Sensing Business Model Across Firm says that given the great success the vendor has achieved with its 3DS products through its virtual vertical integration efforts, the supplier will slowly strive to transition its other businesses toward a greater amount of outsourcing.
“Lumentum’s strategy, beyond staying ahead of its principal competitor, II-VI, on technology, such as its lead with LiDAR chips, is to continue to make up for its lack of complete control by excelling with both its operations team and its contract manufacturing partners to provide differentiated benefits,” said Mark Lutkowitz, Principal at fibeReality. “Supporters of Lumentum can take solace in the vendor not making unilateral, major changes overnight. In fairness, optics is as tough as ever as a business with problems needing to be faced and met with difficult decisions.”
The report offers worldwide projections for both 3DS and datacom VCSEL chips. It also provides a discussion of the negotiating tactics as well as the support expectations by the primary customer, Apple.
Additionally, the study delivers the following eight items: 1) a competitive analysis of the major VCSEL suppliers, 2) an evaluation of the principal emerging 3DS applications, 3) an assessment of the likelihood of Apple producing its own VCSEL chips, 4) an appraisal on the chances of silicon photonics becoming a true threat, 5) a determination of the odds of VCSELs making a difference with co-packaged optics, 6) a prognostication on the arrival of long-wavelength VCSELs including with singlemode fiber, 7) an outlook for development efforts on multi-junction VCSELs as well as on the maturity rates of PAM4-based VCSELs by speed, and 8) an examination of the potential merger of 3DS and datacom VCSEL markets.
The 30-page publication cost $500 and can be purchased at https://www.fibereality.com/store.
fibeReality, LLC is an independent research and consulting firm specializing in optical equipment and services including in telecommunications, datacom, consumer, automobile, AR/VR, and other markets. For more information, visit https://www.fibereality.com/.
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