POET and Sanan IC's JV is making progress

Substantial progress has been made in forming, locating, staffing and equipping SPX, whose mission is to create an assembly, test and sales operation for the production of optical engines based on the POET Optical Interposer platform. Since ink met paper in October 2020 making the JV agreement definitive, the parties completed the official registration of SPX, nominated and appointed board members as well as appointed key functions such as GM, CFO as well as an director of R&D. The company has also completed temporary clean room and office facilities of 5'000 square feet, co-located with Sanan IC in Xiamen and at the same time committed to the completion of a permanent 15'000 square feet facility in an industrial park outside of Xiamen by the end of the year. Capital equipment is ordered and expected delivery, installation and qualification is currently scheduled for April - May. “Progress on the formation of SPX has been remarkably fast compared to the normal time that it takes to get a complex joint venture with a foreign owner officially registered in China, especially with the travel constraints accompanying the COVID-19 pandemic,” says Vivek Rajgarhia, POET’s President and Vice-Chairman of SPX in a press release. “The benefits to POET of this joint venture are notable, as it provides a means for POET to bring products based on the Optical Interposer platform to market with a partner that is able to scale production quickly and efficiently. We have received remarkable support from Sanan IC and from key staff in POET’s Shenzhen office to prepare the SPX operation for what is expected in the coming months, including qualification of equipment and processes, assembly and testing of several product prototypes, establishing good initial customer relationships and making preparations for scaling production early next year. SPX has assembled a world-class leadership team from which both POET and Sanan IC expect outstanding performance,” Rajgarhia continues.