Largan's Variable Aperture Ramps Up in Q3; CPO Samples to Be Shipped This Month
Claire Weston
Largan Precision (大立光) chairman Adam Lin confirmed on July 9 that variable-aperture lens shipments will ramp meaningfully in Q3, while CPO fiber-array samples ship to customers this month for fast-track qualification — two new product lines entering delivery phase together, setting the trajectory for H2 margins.
Why is the variable aperture this year's hardest lens?
The variable aperture — a lens that adjusts light intake automatically, like a human iris — exceeds early periscope lenses in spec complexity and manufacturing difficulty. The core challenge: ultra-strict particle and contamination control during production.
Small-batch pilot production wrapped in Q2. Q3 shipments are expected to show a clear step-up. This means → the product has passed the "can we make it" stage and entered the "how many can we make" stage.
The key variable for Q3 gross margin is yield. New products are still rolling out, and the speed of yield ramp directly determines profit headroom.
How full is Q3 capacity?
Lin said July will beat June, August will beat July. Q3 capacity utilization is already at full load.
In plain terms = no idle lines left in the factory; order visibility is rising month by month.
This reflects an accelerating build cycle from downstream smartphone clients, consistent with the H2 consumer-electronics peak season.
CPO samples are out — what is Largan's edge?
The fiber-array (FA) samples shipping this month target the grating-coupler (GC) architecture market. Lin noted that mainstream GPU and chip makers still design around GC, and GC's market share is expected to significantly exceed edge-coupling (EC) over the next three years.
This means → Largan's bet aligns with the dominant chip-design direction, not a niche play.
The core competitive advantage is proprietary precision-alignment technology — an automated process that aligns V-grooves with tight-tolerance fibers, materially boosting optical transmission efficiency. In plain terms = the more precisely light couples from chip to fiber at the "interface," the lower the data-transmission loss — and that interface is one of CPO's hardest problems.
Is Corning's GlassBridge a threat?
Lin stated clearly that Corning's recently announced GlassBridge technology is an EC-architecture product, a different path from Largan's current GC focus.
In plain terms = the two companies are on different technical routes and do not directly compete in the near term.
The variable to watch longer-term: if EC's market share rises, Largan may need to fill that gap — but that is a three-year question, not a Q3 one.
What do the financials show?
Q2 consolidated revenue was NT$13.665 billion (roughly US$424 million), down 12% quarter-on-quarter but up 17% year-on-year — in line with seasonal patterns.
H1 EPS reached NT$82.35, up 44% year-on-year. This means → even with Q2 being a traditional soft quarter, earnings growth far outpaced revenue growth, signaling an improving product mix.
Q2 gross margin was 49.4%. Whether Q3 holds or improves depends on how fast variable-aperture yields climb.
What to watch next?
CPO qualification timeline: customers will launch fast-track qualification after receiving samples, expected to take two weeks to one month. Whether it passes on the first round determines the mass-production schedule.
Pilot-line readiness: the CPO pilot line is targeted for completion by end of Q3, after which it will be replicated as a fully automated mass-production line. Lin added that inspection and automation equipment can be developed in-house if rapid scale-up is needed.
2027 periscope upgrade: Largan plans to add lens elements for internal zoom, improving autofocus performance and resolution. This means → the company is still investing in smartphone optics, not pivoting entirely to CPO.
Content is for reference only, not financial advice.