Plus code special fiber, optical chip business: Yongding drew a new blueprint for development.

On June 10, Jiangsu Etern Co., Ltd. (Yongding) released its 2021 Non-Public Offering Plan. The announcement shows that Yongding intends to raise 1.08 billion yuan for special optical fiber, chip and other projects. As soon as the news came out, it aroused the common concern of people in the industry. The optoelectronic communication media interviewed Tan Qiang, director and executive deputy general manager of Yongding Co., Ltd., and Tan Qiang gave a detailed introduction on the project background, impact on the company's development, industrial layout, etc., and drew a panoramic view of Yongding. A new blueprint for future development.

Promote the process of localization of special fiber and optical chips.

In recent years, with the continuous expansion of application fields such as communication, laser, instrument sensing, medical treatment, military and national defense, the application value of polarization maintaining fiber and rare earth doped series special optical fiber has become increasingly prominent. Correspondingly, there are few domestic enterprises skilled in special optical fiber manufacturing technology, and the large-scale production capacity is weak, which restricts the development of the industry to a certain extent. In addition, in recent years, with the rapid development of the data center industry and the continuous maturity of technology, the demand for multimode optical fiber has increased significantly.

Tan Qiang said that Yongding, as one of the important suppliers in the field of optical fiber and cable in China, plans to form the production capacity of multi-mode optical fibers such as OM3, OM4 and OM5, polarization maintaining optical fibers, medium and high power rare earth doped optical fibers and other series of special application optical fibers through special optical fiber production and construction projects. After the completion of the project, it will help to digest the production capacity, enrich the product structure, optimize the product performance and quality stability, fill the blank of the company's business in related fields, further enhance the company's market competitive advantage, improve the technical development level of China's special optical fiber industry, and promote the process of localization of special optical fiber.

In the field of key optical devices and optical chips in the upstream of the optical communication industry chain, Tan Qiang pointed out that there is a big gap between the current development level of China's chip industry and that of the international, especially the core optical communication chips are still heavily dependent on imports. Driven by the new generation of high-speed broadband access, data center and 5G construction, the optical communications industry will usher in a new round of technology and product upgrades, and the demand for DFB laser chips, AWG chips and other optoelectronic integrated chips will grow rapidly. In terms of optical devices, driven by the explosive growth of optical communication and data center transmission traffic, the carrier network will face upgrading. Active devices have undergone rapid upgrading from 2.5G, 10G and 100G to 400G and 800G, which will drive the development of optical communication products to a higher speed and accelerate the iteration speed of industrial technology update.

After the completion of this project, it will help the company to strengthen technological breakthroughs including laser chips, AWG chips, WDM filters and optical devices, optimize the manufacturing process, and help the independent production and domestic substitution of chips, optical modules and other products.

Realize the collaborative development of upstream and downstream industry chain

In fact, making efforts to segment the special optical fiber market and speeding up the R & D and production of optical chips is only the "tip of the iceberg" for Yongding to deeply expand the optical communication industry chain ". In recent years, Yongding has achieved remarkable results through comprehensive layout, diversified extension of the industrial chain, and focused on realizing the coordinated development of the upstream and downstream of the optical communication industry chain.

"Optoelectronics Group, a subsidiary of Yongding Holdings, is mainly engaged in the R & D and production of passive optoelectronic core chips, components, optical modules and subsystems, as well as the R & D, production and sales of active laser chips, and is a large platform for completing resource integration and investment management and entrepreneurial teams in the field of optical chips and optical devices. At present, Optoelectronics Group has six subsidiaries, which have been deeply involved in the optical devices industry for many years and have formed a certain business scale." Tan Qiang introduced.

Tan Qiang said that at this stage, the company has formed a strategic pattern of "photoelectric integration and coordinated development", and its business covers the overall field of optical communication industry chain, such as optical chips, optical devices, optical modules, optical rods, optical fibers, optical cables, and so on, with strong comprehensive strength. In 2020, the 5G related industry market broke out, the company with a wealth of product categories, stable product quality, in the 5G pre-pass market optical devices and chip processing and other fields to maintain high-speed business growth, by downstream customers highly recognized, formed a stable cooperative relationship, and established a good market image.

Facing the shock adjustment period of the optical communication downstream market, Tan Qiang said that Yongding has formulated a long-term strategic plan with the goal of building "strong Yongding and efficient Yongding", and has actively chosen two countermeasures: "going out" and "going up": "going out" is to get rid of the dependence on the orders of the three major operators, open up new markets such as overseas engineering and special fiber projects, and open up new performance growth space for the company. "Go up" is to rely on the company's fiber optic cable business volume advantages, the business will extend to upstream optical devices, optical modules, optical chips and other high value-added links.

Specifically, during the "14th Five-Year Plan" period, Yongding strives to realize the large-scale production of three series of chips, including AWG chips, WDM filters and laser chips. At the same time, 2-3 products have been released respectively, with technical indexes reaching the world's first-class. The production capacity not only meets its own needs but also realizes the sharing of strategic partners, and strives to make "Yongding Chip" a benchmark in the industry. The capacity and cost of upstream devices and modules around the chip can create maximum value for customers and enter the ranks of leading companies.

Other sub-business areas, the company's Jinting wiring harness is a well-known domestic automotive wiring harness manufacturers, products cover the regular low-voltage vehicle wiring harness and new energy high and low voltage wiring harness, the main customers include SAIC GM, SAIC Volkswagen, Volvo, Cummins, Yanfeng Andao Tuo, Faurecia and so on.

Yongding has set up a new automotive electrical division by integrating the company's internal industry, human resources, research and development resources. The goal is to surpass the market definition of the traditional first-class supplier (Tier1) and become a "Tier0.5" that is deeply bound with car companies and provides services from collaborative innovation in the early stage to data sharing in the later stage ". To become "Tier0.5", Yongding has enough "confidence". In addition, Yongding subsidiary-Yongding Zhiyuan is one of the core suppliers of China Unicom and China Telecom in telecom big data.

From finding the right entry point in the market, promoting the localization process of special optical fibers and high-end optical chips, to making great efforts to complete the integration of chip and device resources and investment management, to accelerating the realization of technological iteration and upgrading, to deeply cultivating the subdivided business fields such as automobile wiring harness, big data and automobile electric, and carrying out comprehensive business cooperation, Yongding "draws a blueprint to the end" and insists on "going up" and "going out", "Strive to recreate a permanent tripod during the 14th Five-Year Plan". This fund-raising plus code special optical fiber, optical chip and other projects, is expected to help Yongding complete the industrial chain in-depth layout, win the optical communication industry chain upstream and downstream collaborative growth, to the company to achieve the next round of development to create a new situation.