Applied Optoelectronics Signs $194.4M Annual Supply Contract With China's Yunnan Germanium

Applied Optoelectronics signed a long-term supply agreement with a subsidiary of China's Yunnan Germanium to purchase 180,000 indium phosphide substrates annually from 2027 through 2031. The first year is valued at approximately $194.4 million, with total costs for the 4-inch wafers estimated at about $970 million over five years. The substrates are used to manufacture lasers for 800G and 1.6T transceivers, and the agreement remains subject to Chinese export approvals with potential volume adjustments based on market demand.