Pricing in fibre future

研报英文原文证据摘录

Pricing in fibre future

Macquarie Equity Research Largan Precision

CPO / FA: Precision manufacturing remains the key differentiator

• Management views fibre array (FA) as progressing faster than PMLA. The company

emphasised that its competitive advantage lies in high-precision alignment and automated

manufacturing rather than materials innovation, particularly in addressing tolerance

mismatches between V-grooves and fibre cores. Largan also believes it can develop the

required production and inspection equipment in-house.

• Largan has not yet set pricing and margins expectations; yield performance is a critical

determinant of economic viability due to the high BOM for fibres and V-grooves.

• Management does not view Corning's GlassBridge technology as a direct replacement for

grating coupling (GC) architectures. Instead, it sees GlassBridge as more aligned with an

edge coupling (EC) approach, which can coexist alongside GC solutions. Management

noted that GC remains the mainstream architecture under evaluation by customers today

and therefore does not see GlassBridge as a reason to alter its current development

roadmap.

• Commercial engagement remains at an early stage. Most customer discussions are

still focused on proof-of-concept and design validation, although one customer has

progressed into a more concrete pre-production qualification. Largan has received formal

specifications from this customer and expects to deliver samples within approximately one

month. The pilot production line is scheduled for completion by end-3Q26, with capacity

replication to follow if qualification progresses smoothly.

• While customer interest is increasing, management does not expect revenue contribution

from fibre array until 2027.