Foxconn Interconnect Technology Acquires 70% Stake in Ccloud, Strengthening Global Optics Capabilities

[Taipei – August 5, 2024] Foxconn Interconnect Technology (FIT) ("FIT", listed on the Hong Kong Stock Exchange under 6088), a subsidiary of Hon Hai (TW.2317), today announced the acquisition of a 70% stake in 山东华云光电技术有限公司 China Cloud Electro Optics Technology Co. Ltd ("Ccloud"), for RMB 220 million. This strategic move further strengthens FIT’s position in the high-speed optical module and Co-Packaged Optics (CPO) technology market. The acquisition comes in response to the increasing demand for optical communication driven by AI advancements. AI data centers are accelerating the demand for 400G/800G optics, with the market surpassing $4.5 billion by 2024, representing half of the total optical communication market.

The integration of Ccloud will significantly accelerate the development timeline for FIT's optical products: multi-mode optical products by the third quarter of 2024, including 800G QDD, OSFP AOC, SR8, and LPO (1 to 100 meters); single-mode products such as 800G DR8 2xFR4 (500 meters to 2 kilometers) are anticipated to be finalized by the fourth quarter of 2024. All these products will adopt silicon photonics technology. By the end of 2025, FIT aims to complete the development of 1.6T SR8/DR8 optical products. Ccloud is equipped with the capability for large-scale production of 100G to 800G optical modules, which cover more than 80% of the optical communication market. The company's core staff come from top-tier optical communication companies with over 30% of employees dedicated to innovation development and engineering.

The collaboration between FIT and Ccloud brings highly complementary resources: FIT has a strong international customer base and extensive overseas manufacturing capabilities, while Ccloud is equipped with a top-tier R&D center and a comprehensive pilot and mass production base in Wuhan. The two companies have already started large-scale shipments of 800G OSFP SR8 modules to major North American customers, laying a solid foundation for future cooperation.

In 2024, FIT has made rapid progress in AI-related products. Building on its strengths in high-speed copper products, FIT showcased its 224G solution at DesignCon earlier this year and won the 2023 Red Dot Design Award for its innovative 800G high-speed connectors under the “FITCONN” brand. The development of optical products is also on track, with FIT leveraging its brand strength and collaborating with MediaTek to develop high-speed and next-generation CPO (Co-Packaged Optics) solutions. Simultaneously, FIT is working with upstream chip manufacturers to develop 1.6T solutions.

Alex An , Sr. Director of Business Development, stated, "This partnership will mutually benefit both companies by accelerating our ability to serve upcoming projects in the AI and networking markets. By combining FIT’s strength in industrializing connectors and scaling high-speed connectivity products with ccloud’s expertise in optics, we can sharpen our focus on customer design support, product quality, and geographically diverse supply chains. FIT is enthusiastic about partnering with Ccloud to embrace the future of AI data center connectivity.” Ccloud CEO Zhai Hong Gang added, "We will continue to uphold the spirit of open collaboration, working together to drive the application and development of AI optical module technology, contributing to a beautiful digital and intelligent future. Through highly complementary and in-depth cooperation, we are confident in continuously launching new AI technology applications, rapidly capturing market share, and becoming a rising star in the industry."

About FIT (Foxconn Interconnect Technology) Hon Teng (HK.6088)

FIT Hon Teng (HKEX: 6088) was listed on the Hong Kong Stock Exchange in 2017 and is the largest consumer electronics connector manufacturer in Greater China. With a core focus on connector products, FIT has strategically expanded into 5G AIoT, electric vehicles, and acoustic electronic components in recent years, while also venturing into consumer brand management. For more information, please visit the company’s website at www.fit-foxconn.com . For more information about FIT, please see: www.fit-foxconn.com . Email: [email protected]