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the recent price actions caught my attention and was wondering what is brewing. I think there should be some further development to its last acquisition related to Valeo; a new direction to its operating segment probably. from a pure server assembly to automotive/EE; adding plastic injection moulding and pcb assembly capacity. If it works well, it could serve other customers too.
Data comm and automotive segments showing good numbers from the last qr. For automotive, One qtr revenue in Q1FY26 is equivalent to full year revenue for FY24 and FY25. A successful testing and qualification for Poet's optical engines incorporating custom designed FAU will not only contribute to Natgate's revenue but also open up opportunity for other customers in the photonics/optical industry.
Erm.. I just see it performance. Hope those fund manager can see it too. I seen it prepare for transition from EMS into high tech value position such as photonics. I buying it future, hope it won’t disappointed me. Being apprentice there before, their management very good in position and planning, and always one step before. Hope current management team still the same.
ooh, must be a good apprenticeship experience for you. indeed the optical transceiver/photonics technology progress in natgate is impressive. Natgate has the capacity to support their customer's expansion :) datacom and automotive will be the ones to watch for.
But even it good. It’s no help because this is share market. People will just seen the cash out opportunity rather then see the company future especially bursa.
extracted from market research reports - Optical transceiver is on a trajectory that roughly doubles or more across the 2026 to 2036 period, with datacom - and the AI-network segment within it - the fastest-growing pool of demand; four structural shifts reshaping the market. The first is the migration from electro-absorption modulated lasers toward silicon photonics, which the report projects rising from roughly a quarter of datacom shipments toward two-thirds, commanding an even larger share of revenue. The second is the progression up the speed ladder, from 800G through 1.6T toward 3.2T. The third is the gradual emergence of co-packaged optics, integrating optical engines directly onto switch silicon to overcome the power and density limits of pluggable modules. The fourth is the diversification of demand beyond communications into access networks, wireless, automotive LiDAR, optical computing, and quantum applications. https://www.researchandmarkets.com/reports/6244194/the-global-optical-transceiver-market?utm_source=GNE&utm_medium=PressRelease&utm_code=7fnlzz&utm_campaign=2284500+-+Optical+Transceiver+Market+Set+to+Double+as+AI+Data+Centers+Drive+Unprecedented+Demand+for+800G+and+1.6T+Modules&utm_exec=clshmsai
See whether investor is looking for short term cash out or future orders, future earnings and future market position. Projected earnings of 3 years down the line rather than current profit. This is what I am seeing from now.
some corporate updates from POET (Canada) which should translate to higher activities at Natgate - The photonics specialist is pressing ahead with its plan to begin volume manufacturing of optical engines for AI data centres in the second half of 2026. By the end of 2027, management expects to hit a monthly run-rate of one million units. Those chips are designed for 800G and 1.6T transceivers, the backbone of next-generation AI infrastructure. More than ten active customer engagements are already on the books, with combined annual revenue potential north of $100 million — including early orders for 800G engines and a tie-up with Lumilens.
it will not be a one-off performance spike for the datacom segment, leong. Their customers are seeing high demand which means more volume for Natgate; expansion if you will. You can see Nvidia pumping money into optics/silicon photonics companies :)
There will be few critical thing. First to see is this coming quarter will the optical business turn into mass production and how much it’s bring back the revenue. Lastly, who’s the key customer in behind. Then I believe market will re-evaluate NG value.
Optical transceiver/silicon photonics high demand and Natgate is the primary beneficiary as their customers are ramping up/seeing high demand; multifold if you will.
optical transceiver modules; integrating dsp with silicon photonics technology and the following applications driving the spike/demand for the optical transceiver module - Energy-efficient 1.6T data center networks, GPU/accelerator interconnects in AI clusters, Spine and aggregation switch links in data centers, 2×800G DR4 and 1.6T DR8 Ethernet connectivity
It can go way higher driven by the datacom segment; optical transceivers if you will. Vice versa, downside risk is equally high if datacom segment fails to take off due to delays in ramp-up or qualification/testing.
WHY NG
It's not that other companies cannot do it, but only a limited number of manufacturers currently meet POET's technical and production requirements. NationGate happens to be one of them.
*1. POET was not looking for just another contract manufacturer*
POET is not simply outsourcing production. Instead, it is partnering with a company that can jointly develop and manufacture its optical products at scale.
NationGate's responsibilities include:
-Optical Engine Assembly
-Fiber Attach Unit (FAU) assembly
-Precision optical alignment
-Optical testing
-Final AI optical module integration and manufacturing
These processes require specialized expertise and cannot be performed by a typical EMS manufacturer.
*2. NationGate already has experience in AI server manufacturing*
NationGate's competitive advantage goes beyond PCB assembly.
The company already has capabilities in:
-NVIDIA AI server manufacturing
-GPU server assembly
-High-end electronics manufacturing
-Cleanroom production
-High-precision SMT
-Burn-in testing
-Advanced manufacturing processes related to optical modules
POET's management has also highlighted Malaysia's mature semiconductor ecosystem and skilled workforce as key reasons for selecting the country for production expansion.
*3. Malaysia is building a complete photonics ecosystem*
POET's manufacturing strategy in Malaysia currently looks like this:
SilTerra → Wafer fabrication
Globetronics → Optical Engine manufacturing
NationGate → Final Optical Module Assembly
This means NationGate is not working alone. It is part of a larger Malaysian photonics supply chain that POET is developing.
POET itself refers to this as its Malaysia-centered ecosystem.
*4. Why not choose another EMS company*
Technically, POET could have partnered with other manufacturers such as:
-VS Industry
-UWC
-Pentamaster
-Jabil
-Flex
-Venture
However, AI optical modules are very different from ordinary electronic products.
Manufacturing them requires expertise in:
-Micron-level optical alignment
-Optical coupling
-Laser packaging
-Fiber attachment
-Optical testing
-High-yield precision manufacturing
Even large EMS companies may not possess all of these capabilities, and building them could take years.
*5. NationGate also offers another important advantage*
NationGate already serves customers in the AI industry.
One sentence from POET's announcement is particularly noteworthy:
"Manufactured specifically for one of POET's key customers."
This suggests that POET already has a customer for these products, while NationGate will be responsible for manufacturing them.
POET also indicated that the products are intended for hyperscale data center applications.
Although the customer has not been publicly identified, market speculation points to a major AI or cloud computing company. However, there has been no official confirmation, so it should not be assumed to be NVIDIA, Microsoft, or any other specific company.
*6. Why is this important for NationGate?*
If POET successfully commercializes its:
-800G optical modules
-1.6T optical modules
-Future 3.2T optical modules
and enters high-volume production,
NationGate will not earn revenue from designing the optical chips themselves.
Instead, it will generate manufacturing revenue from:
-Optical module assembly
-FAU assembly
-Optical testing
-Final system integration
As demand for AI optical modules increases, NationGate's manufacturing business could also expand accordingly.
*7.Conclusion*
Many investors ask:
"If POET does not manufacture its own products, why choose NationGate?"
The answer is becoming increasingly clear.
POET's core strength lies in its optical technology platform and product design, not in operating manufacturing facilities.
Its business model is similar to NVIDIA designing chips while TSMC manufactures them. POET focuses on innovation and intellectual property, while trusted manufacturing partners such as Globetronics and NationGate handle production.
If POET's 800G and 1.6T products achieve large-scale commercial adoption, NationGate could evolve from being primarily an AI server manufacturer into an important participant in the AI optical module supply chain.
This is why investors are paying close attention to the partnership.
Ultimately, however, the real catalyst will not be the partnership announcement itself, but whether it leads to mass production orders, purchase orders (POs), and meaningful revenue growth in the future.
*8.Disclaimer*
NO WARRANTY, NO GUARANTEE, JUST A CUT AND PASTE
Fingers crossed on POET's optical interposer qualification & testing currently on-going at Natgate. A successful qual & testing will be followed suit by ramp-up/mass production as POET has confirmed purchase orders tied to Marvell/Celestial AI :) POET is still at the infant stage now comparing to the other two leading US MNC customers of Natgate.