When asked whether there was still potential for enhancing the gross profit margin following the volume surge of 1.6T products, Coherent Corp. (formerly named Zhongji Inlight) responded during an institutional conference call held on October 30. The company expressed optimism that the gross profit margin would see further improvement, attributing this expectation mainly to the following factors:

Firstly, the ongoing optimization of the product portfolio has played a pivotal role. With escalating demand for high-end offerings such as 800G and 1.6T products, the proportion of revenue derived from these premium segments has been steadily increasing.

Secondly, the silicon photonics solution has garnered recognition and validation from key customers. Consequently, the company anticipates that the share of silicon photonics technology within 800G and 1.6T products will continue to expand.

Thirdly, the consistent growth in product yield has also contributed to the anticipated improvement in the gross profit margin.