Slide 1: Analyst Briefing at OFC 2023
ANALYST BRIEFING AT OFC 2023 Optical Communications Now, Next, and Beyond March 8, 2023 Copyright 2023, Coherent. All rights reserved.
Slide 2: Co-Hosts
CO-HOSTS Dr. Giovanni Barbarossa Mary Jane Raymond Segment President Materials Chief Financial Officer & Chief Strategy Officer Copyright 2023, Coherent. All rights reserved. 2
Slide 3: Speakers
SPEAKERS Matthias Berger Julie Sheridan Eng Vice President, Coherent Chief Technology Officer Transceiver Technology Copyright 2023, Coherent. All rights reserved. 3
Slide 4: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements relating to future events and expectations that are based on certain assumptions and contingencies. The forward-looking statements are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigatio
Slide 5: Telecom Transceivers Now, Next, and Beyond
TELECOM TRANSCEIVERS NOW, NEXT, AND BEYOND Analyst briefing at OFC 2023 March 8, 2023 Matthias Berger Vice President, Coherent Transceiver Technology Copyright 2023, Coherent. All rights reserved.
Slide 6: 5G Is Still Early in Its Deployment Cycle
5G IS STILL EARLY IN ITS DEPLOYMENT CYCLE 5G global share of mobile traffic IoTs growing 5G 69% 2028 IoT 35B 2028 mobile traffic Devices 13B 2022 17% 2022 ▪ Video: 70% of all mobile data ▪ CAGR 2022 to 2028: 18% traffic ▪ Broadband IoT (4G/5G): 60% by 2028 Copyright 2023, Coherent. All rights reserv
Slide 7: Next-Generation Broadband Services Drive Data-Intensive Applications
NEXT-GENERATION BROADBAND SERVICES CONTINUE TO DRIVE APPLICATIONS THAT ARE INCREASINGLY MORE DATA INTENSIVE Broadband Services ▪ 5G Wireless ▪ Fiber-to-the-home ▪ Broadband cable ▪ Low-Earth-orbit satellites Copyright 2023, Coherent. All rights reserved. 7
Slide 8: Coherent Is the Largest Supplier of Optical Components
COHERENT IS THE LARGEST SUPPLIER OF OPTICAL COMPONENTS FROM THE EDGE TO THE CORE Edge Core Access Networks Transport Networks Datacenters • 5G Wireless • Metro • Video streaming • Fiber-to-the-home • Regional • Cloud services • Broadband cable • Long-haul • Social media • Submarine • Big data/AI/ML
Slide 9: Transformations in the Optical Network: Now, Next, and Beyond
TRANSFORMATIONS IN THE OPTICAL NETWORK NOW, NEXT, AND BEYOND Now Next Beyond Disaggregation of the Low power, low cost Optical transport data transport network driven coherent interfaces move rates exceed 1Tbit/s by the growing influence to the edge of optical of hyperscalers networks High level of
Slide 10: Now
NOW Disaggregation of the optical transport network Copyright 2023, Coherent. All rights reserved. 10
Slide 11: Transport Networks vs. Datacenter Networks
TRANSPORT NETWORKS VS. DATACENTER NETWORKS Transport Networks Datacenter Networks Integrated Equipment Disaggregated Equipment • Network management developed by equipment vendor • Network management developed by cloud providers • ROADM vendors assigned network regions • Standard interfaces enables i
Slide 12: Disaggregation by Transforming Line Cards into Pluggable Transceivers
DISAGGREGATION BY TRANSFORMING LINE CARDS INTO PLUGGABLE TRANSCEIVERS Transport Networks ROADM Integrated Equipment Optical Amplification Transport network Wavelength-selective switch Long-reach DWDM transmission Router Transponder Pluggable Short-reach “grey” transmission line cards Short-reach “gr
Slide 13: Leapfrogging a Generation of Coherent Optics with PICs
LEAPFROGGING AN ENTIRE GENERATION OF COHERENT OPTICS WITH PHOTONIC INTEGRATED CIRCUITS Power supply IC-TROSA regulators Integrated Coherent Transmitter- Receiver Optical Subassembly Quad CDM - Coherent driver Tx Driver modulator ITLA - Integrated Tunable laser assy Quad ICR – Integrated TIA coherent
Slide 14: Indium Phosphide Technology Platform
INDIUM PHOSPHIDE TECHNOLOGY PLATFORM ENABLES HIGH OPTICAL OUTPUT POWER InP fab in Järfälla, Sweden Copyright 2023, Coherent. All rights reserved. Copyright 2023, Coherent. All rights reserved. 14
Slide 15: Industry's First 400G ZR+ in QSFP-DD
FEB. 2022: THE INDUSTRY’S FIRST 400G ZR+ IN QSFP-DD FORM FACTOR Network engineer at Windstream Wholesale network lab holds a pluggable 400G ZR+ transceiver from Coherent Photo courtesy of Windstream Wholesale Copyright 2023, Coherent. All rights reserved. 15
Slide 16: Next
NEXT Coherent transceivers for access networks and satellite links Copyright 2023, Coherent. All rights reserved. 16
Slide 17: 100G ZR QSFP28 Enables Seamless Upgrades in Access Network
100G ZR QSFP28 ENABLES SEAMLESS UPGRADES IN THE ACCESS NETWORK 10G – 80 km 25G – 15 km 100G – 100+ km Copyright 2023, Coherent. All rights reserved. 17
Slide 18: Coherent Transceiver Technology for Access Networks
COHERENT TRANSCEIVER TECHNOLOGY FOR ACCESS NETWORKS 100ZR QSFP-28 DCO Steelerton™ DSP Purpose-built power- purpose-built for optimized tunable laser small size and low power consumption Highly integrated silicon photonics PIC Copyright 2023, Coherent. All rights reserved. 18
Slide 19: Next: Optical Communications in Satellites
NEXT: OPTICAL COMMUNICATIONS IN SATELLITES • Point-to-point laser communication links between low-Earth-orbit (LEO) satellites • Transmission with laser beams is much more efficient that using radio, leading to power reduction which is key in space • Coherent awarded contract for DARPA Space- Based
Slide 20: Bridging the Digital Divide with Satellite Broadband
THE POTENTIAL TO BRIDGE THE DIGITAL DIVIDE WITH SATELLITE BROADBAND 2.7B without broadband access* Strong potential for satellites to reduce the digital divide due to efficient coverage of sparsely populated areas * 2022 report jointly published by the ITU and UNESCO Copyright 2023, Coherent. All ri
Slide 21: Beyond
BEYOND Multi-terabit coherent transceivers for datacenters Copyright 2023, Coherent. All rights reserved. 21
Slide 22: Multi-Terabit Coherent Transceivers for Petabit Switches
MULTI-TERABIT COHERENT TRANSCEIVERS FOR PETABIT PER 1 Pbps SECOND SWITCHES • System face plate space will not increase but switches will scale from 10T to >100T Switch • 1 Pbps requires 40000 optical connectors with Capacity transceivers at 100 Gbps and only 2500 connectors (Tbps) with transceivers
Slide 23: Multi-Terabit Transceiver Technology for Sustainable Datacenters
MULTI-TERABIT COHERENT TRANSCEIVER TECHNOLOGY FOR THE SUSTAINABILITY OF FUTURE DATACENTERS 1.6 T Transceiver 1.6T DSP from 7 nm CMOS to less than 3 nm A 1.6T transceiver could consume as little as one-tenth the power of 16 older-generation From printed circuit boards to multi- transceivers at 100G.
Slide 24: Coherent Transmission: Now, Next, and Beyond
COHERENT TRANSMISSION: NOW, NEXT, AND BEYOND NOW NEXT BEYOND Equipment disaggregation in Coherent transceivers in Terabit interfaces in telecom networks access networks datacenter networks 400G+ 100G 1.6T+ 1.6T Copyright 2023, Coherent. All rights reserved. 24
Slide 25: Datacom Transceivers Now, Next, and Beyond
DATACOM TRANSCEIVERS NOW, NEXT, AND BEYOND Analyst briefing at OFC 2023 March 8, 2023 Dr. Julie Sheridan Eng Chief Technology Officer Copyright 2023, Coherent. All rights reserved. 25
Slide 26: Datacenters
DATACENTERS A vast, sprawling, and rapidly growing information infrastructure is becoming increasingly woven into lives Copyright 2023, Coherent. All rights reserved. 26
Slide 27: Ethernet Transceiver Global Market
ETHERNET TRANSCEIVER GLOBAL MARKET $M Source: LightCounting Oct. 2022 #1 in the datacom market 10000 with $1.2 billion in sales 9000 1.6T 8000 7000 800G 400G 200G 6000 and higher data-rate 200G transceivers 5000 >50% of our revenue 100G 4000 40G & 50G 3000 2000 25G 10G 800G and higher data-rate 1000
Slide 28: Transformations in the Optical Network: Now, Next, and Beyond
TRANSFORMATIONS IN THE OPTICAL NETWORK NOW, NEXT, AND BEYOND Now Next Beyond 100G Per Lane 1.6T Transceiver Co-Packaged Optics (CPO) Technology A full range of lasers and Market transition accelerated Addressing data bottlenecks technology platforms enables by AI and ML beyond transceivers market le
Slide 29: Now: 100G Per Lane
NOW 100G Per Lane Copyright 2023, Coherent. All rights reserved. 29
Slide 30: Transceiver Data Rates Are Multiples of Lane Data Rates
TRANSCEIVER DATA RATES ARE MULTIPLES OF LANE DATA RATES MTP connector of a fiber ribbon cable Copyright 2023, Coherent. All rights reserved. 30
Slide 31: Gallium Arsenide Platform for Short-Reach Transceivers
GALLIUM ARSENIDE PLATFORM FOR SHORT-REACH TRANSCEIVERS Feb. 2023 - Coherent introduces our 100G per lane VCSELs to support 400G and 800Gb transceivers Vertically integrated 6” GaAs platform Sherman, TX Copyright 2023, Coherent. All rights reserved. 31
Slide 32: Indium Phosphide Platform for Long-Reach Transceivers
INDIUM PHOSPHIDE TECHNOLOGY PLATFORM FOR LONG-REACH TRANSCEIVERS Electro-Absorption Modulated Laser (EML) Directly Modulated Laser (DML) Continuous Wave Laser (CWL) Indium phosphide wafer fab in Fremont, CA Copyright 2023, Coherent. All rights reserved. 32
Slide 33: Integrated Circuits
INTEGRATED CIRCUITS Trans-impedance Laser driver Clock data amplifier (TIA) recovery (CDR) ▪ In-house integrated circuit design team for laser drivers, TIAs and CDRs ▪ ICs manufactured in tier 1 silicon foundries Copyright 2023, Coherent. All rights reserved. 33
Slide 34: Assembly Manufacturing at Scale
ASSEMBLY MANUFACTURING AT SCALE Wuxi, China 1,530K sq. ft manufacturing space 5,000 employees Ipoh, Malaysia 640K sq. ft manufacturing space 3,500 employees Geographic diversity of high volume transceiver assembly manufacturing improves assurances of supply Transceiver volume assembly manufacturing
Slide 35: Next: 1.6T Transceiver Technology
NEXT 1.6T Transceiver Technology Copyright 2023, Coherent. All rights reserved. 35
Slide 36: The Growing Footprint of AI/ML in Data Centers
THE GROWING FOOTPRINT OF AI/ML IN DATA CENTERS Spine Switches AI ML Leaf/ToR ▪ A new datacenter Switches network dedicated to AI/ML ▪ AI/ML link data rates expected to grow much faster than Compute Storage AI/ML compute and storage Copyright 2023, Coherent. All rights reserved. 36
Slide 37: Lasers and Transceivers in Development for 1.6T
LASERS AND TRANSCEIVERS IN DEVELOPMENT FOR 1.6T 1.6T Short-Reach 1.6T Mid-Reach 1.6T Long-Reach < 300 m 500 m to 2 km Up to 10 km 100G per lane 200G per lane 200G per lane 16 lanes 8 lanes 8 lanes Gallium Arsenide Indium Phosphide Indium Phosphide ▪ VCSEL ▪ DML ▪ EML ▪ EML ▪ DFB-MZ ▪ CWL with modula
Slide 38: 200G PAM4 Mach-Zehnder Modulated Laser Technology
200G PAM4 MACH-ZEHNDER MODULATED LASER TECHNOLOGY ▪ Supports 1.6T, 10 km transceivers ▪ Uncooled operation for shorter links ▪ 200G PAM4 per wavelength o LAN-WDM, CWDM channel plans ▪ High performance: o High speed 112 Gbaud o High output power: 8.5 dBm o Extinction ratio: 7dB OMA o Low noise: -147
Slide 39: Beyond: Co-Packaged Optics (CPO) Technology
BEYOND Co-Packaged Optics (CPO) Technology Copyright Copyright 2023, 2023, Coherent. Coherent. All All rights rights reserved. reserved. 39
Slide 40: Data Rate Bottlenecks
DATA RATE BOTTLENECKS As the bandwidth of switch chips increase, new bottlenecks for electrical signals emerge: ▪ In and out of the switch chip ▪ Across a printed circuit board to the transceiver ▪ Number of optical transceivers that can fit on the front face plate to support the full switch bandwid
Slide 41: Board-Mounted Optical Assemblies and Fly Over Cables
BOARD-MOUNTED OPTICAL ASSEMBLIES AND FLY OVER CABLES BOA BOAs are vertically pluggable Board-Mounted transceivers that sit right next to Optical Assemblies the switch chip but are not integrated with the switch chip. Fly over The cables run from directly next to a processor to the front panel cables
Slide 42: Co-Packaging Technology
CO-PACKAGING TECHNOLOGY Switch, Processor, FPGA, or GPU ▪ ARPA-E Sponsored Project on co-packaging ▪ IBM and Coherent collaboration ▪ 940 nm VCSELs ▪ 800G – 50G/lane x 16 lanes ▪ < 4 pJ/bit, 3.2 W Co-packaged optical module ▪ W: 13 mm x D: 13 mm x H: 4 mm Copyright 2023, Coherent. All rights reserve
Slide 43: Why the Industry Loves Pluggable Transceivers
WHY THE INDUSTRY LOVES PLUGGABLE TRANSCEIVERS ▪ Ecosystem of components and pluggable modules • 1G, 10G, 25G, 40G, 100G, 200G, 400G, 800G • 100 m, 500 m, 2 km, 10 km, 40 km, 80 km ▪ Standards-based ▪ “Pay-as-you-grow” cost model ▪ Easily replaceable Pluggable transceivers have been successful for th
Slide 44: Choosing the Best Technology for the Application
CHOOSING THE BEST TECHNOLOGY FOR THE APPLICATION Short-Reach Mid-Reach Long-Reach Inches to 300 m 500 m to 2 km Up to 10 km Indium Phosphide Lasers & Detectors and Micro-Optic Assemblies Gallium Arsenide VCSELs Indium Phosphide Indium Phosphide Lasers & Detectors on Photonic Integrated Silicon Photo
Slide 45: Transformations in the Optical Network: Now, Next, and Beyond
TRANSFORMATIONS IN THE OPTICAL NETWORK NOW, NEXT, AND BEYOND Now Next Beyond 100G Per Lane 1.6T Transceiver Co-Packaged Optics (CPO) Technology A full range of lasers and Market transition accelerated Addressing data bottlenecks technology platforms enables by AI and ML beyond transceivers market le
Slide 46: Q&A
Q&A Dr. Giovanni Mary Jane Dr. Julie Eng Matthias Berger Dr. Sanjai Barbarossa Raymond Chief Technology Vice President, Parthasarathi Officer Coherent Transceiver Segment President Chief Financial Officer Chief Marketing Officer Technology Materials & Chief Strategy Officer Copyright 2023, Coherent.
Slide 47: Coherent
COHERENT