ClassOne Technology has secured record follow-on orders from Applied Optoelectronics Inc (AOI) for multiple Solstice S8 single-wafer wet processing systems, marking the largest customer order in ClassOne’s history and signaling a pivotal shift toward optical interconnects in AI data centers.
The order and its significance
AOI, a designer and manufacturer of optical and hybrid fiber-coaxial networking products for AI data centers, cable TV, and broadband fiber access networks, will deploy the systems at its Houston facility to support expanding production of optical devices. The orders reflect what industry analysts describe as an inflection point: the rapid transition from electrical to optical interconnects within AI-driven data-center architectures.
Yole Group projects photonics will become a foundational technology in AI data centers over the next decade, with silicon photonics markets growing at a compound annual growth rate (CAGR) of approximately 30% through 2030. AI-driven optical interconnect infrastructure is expected to expand at a CAGR exceeding 20% as hyperscalers shift from pluggable optics to co-packaged architectures.
Manufacturing implications
“The continued growth of AI data-center infrastructure is placing new demands on both scale and process consistency in optical device manufacturing,” said Stephen Hu, deputy director of Wafer and Chip Production at AOI. “These additional Solstice systems will support our expansion in Texas, and having ClassOne’s world-class wafer processing technologies in house will help us speed our production ramp.”
The order strengthens ClassOne’s move into high-volume manufacturing (HVM) to meet accelerating global demand for high-speed optical interconnect devices. AOI is expanding both capacity and process capability, including its transition to 6-inch indium phosphide (InP) wafer production.
Classone’s position and technology
“This milestone order is not only a validation of the performance and scalability of our Solstice platform, but also a clear signal of where the industry is heading,” said ClassOne CEO Byron Exarcos. “We are in the early stages of a major architectural shift in AI data centers toward optical interconnects. From transceivers today to co-packaged optics tomorrow, photonics will play a central role in enabling the next decade of AI growth.”
ClassOne has established an early leadership position in this transition, with Solstice systems now deployed across the world’s top five photonics device makers. The company’s differentiated approach to precision single-wafer wet processing positions it to support both existing production needs and future technology transitions, including the industry-wide shift to 6-inch InP wafer production.
Looking ahead
The AOI follow-on orders underscore a broader industry trajectory: as AI workloads demand exponentially higher bandwidth and lower latency, optical interconnects are moving from niche to mainstream. ClassOne’s Solstice platform is now embedded in the production infrastructure of leading photonics manufacturers, positioning the company to capture sustained demand as hyperscalers accelerate their deployment of co-packaged optics and silicon photonics over the next decade.
