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US firm acquisition drives AI growth at HK fibre optics start-up Cloud Light

US firm acquisition drives AI growth at HK fibre optics start-up Cloud Light

Cloud Light Technology, a manufacturer of optical modules based in Hong Kong Science and Technology Parks (HKSTP), is poised for a 50% annual growth rate following its acquisition by a US company. The surge in demand for data centers driven by artificial intelligence (AI) has fueled this growth.

The company, which specializes in fibre-optic transceivers used in data centers, was acquired by US giant Lumentum for US$750 million. Cloud Light’s products cater to the increasing need for higher bandwidth and computing power in the global AI market.

CEO Dennis Tong highlighted the importance of interconnect products for enabling massive computing power required for AI and machine learning applications. Cloud Light has achieved steady revenue growth, foreseeing sustained expansion with Lumentum’s support.

The acquisition provides Cloud Light with enhanced sales capabilities in North America and access to a manufacturing facility in Thailand. Tong stressed the need for geographical diversification to bolster supply chain security.

Despite operating in multiple locations, Hong Kong remains the company’s R&D hub due to its strong engineering schools and access to capital. The city’s ambition to become a tech innovation hub aligns with the company’s vision for future growth.

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