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On June 16, Suzhou Dongshan Precision Manufacturing Co., Ltd. announced that its subsidiary, Source Photonics, and its affiliated entities plan to invest US$1.2 billion in Changzhou and other locations to expand projects related to optical chips and modules, with all funds self-raised. The project aims to expand production capacity to meet the demand for core components in the AI computing power industry and strengthen the company's competitiveness in the optical communications sector. Source Photonics possesses full-chain technology for optical chips, and its profits accounted for 52.92% of the company's consolidated net profit in the first quarter of 2026, making it a core profit growth driver. The project requires completion of multiple pre-approval processes and is subject to risks such as policy and market uncertainties.
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