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This article was written based on OE Solutions’ official website, its 23rd Annual Business Report, and company announcements publicly available as of August 17, 2026. DANA NOTES’ analysis is also included.
In Part 1, we looked at OE Solutions as a company that develops optical communication products needed for mobile networks, fixed-line networks, and data centers, with optical transceivers at the center of its business.
In Part 2, we will take a closer look.
What This Article Covers
As OE Solutions develops faster optical transceivers, it is also researching the core components that generate light and building experience in applying its own technologies to products actually used by customers. More recently, it has been expanding these technologies into 800G and 1.6T optical communications for AI data centers.
It Also Develops the Core Components Inside Optical Transceivers
The first keyword for understanding OE Solutions’ technological competitiveness is lasers.
Optical communications transmit data using light. Inside an optical transceiver is a laser that converts electrical signals into light for transmission.
OE Solutions researches core optical components needed for optical transceivers, including these lasers. In its 23rd Annual Business Report, the company explains that it connects the core technologies required to design and manufacture optical transceivers—including semiconductor devices, optical packaging, circuits, and mechanical structures—within a single R&D framework.
Its own technologies are also being applied to actual products.
OE Solutions has begun mass production of 10G-class FTTH optical transceivers using its own laser diodes. FTTH is a method of providing internet access by extending fiber-optic cables to homes or buildings. The company explains that connecting its own optical components with its optical transceiver technology has strengthened its ability to meet customer requirements in delivery time, price, performance, and quality.
This structure shows the breadth of OE Solutions’ technology.
It is a company that can develop both the finished optical transceiver and the core components inside it that generate light.
Its Proprietary Laser Technology Is Leading to Actual Overseas Shipments
Proprietary technology becomes a business advantage when it connects to actual products and customers.
OE Solutions already has examples of this.
One representative technology is the tunable laser.
Optical communications can use different types of light to transmit data. Wavelength is one of the criteria used to distinguish these types of light. A tunable laser can select and use a required wavelength.
OE Solutions states that it has secured around 30 patents in Korea and overseas related to its Tunable Laser Chip technology. A 10Gbps-class tunable optical transceiver using this technology completed customer validation in the second half of 2024, and new orders and shipments to a U.S. network equipment company began in early 2025.
The process can be summarized simply as follows.
Laser technology development → application to optical transceivers → customer validation → overseas orders and shipments
OE Solutions is building commercialization experience that connects its proprietary technologies to products and revenue.
It Also Supplies Optical Communication Technology for Fast, Long-Distance Transmission
In optical communications, transmission distance is important along with speed.
The technologies required differ depending on whether data travels only a few meters inside a building or tens to hundreds of kilometers across metropolitan communication networks.
OE Solutions is also developing coherent optical communication technology for transmitting large amounts of data over long distances.
Coherent technology uses multiple properties of light to transmit large amounts of data over long distances.
OE Solutions has completed customer approval for a 100Gbps-class coherent optical transceiver capable of transmitting up to 120 km and has been supplying the product since 2025. It is also pursuing customer approval for 200G and 400G products.
An important point here is customer approval.
Products used in telecommunications equipment go through a process in which their performance is tested with the customer’s actual equipment. Once product approval, equipment validation, and production processes are connected, the product is ready for actual supply.
OE Solutions has gained this validation and supply experience with tunable optical transceivers and 100G coherent products.
It Develops Products for the Environments Customers Need
Even optical communication products with the same speed can have different requirements depending on where and how they are used.
Products installed in mobile base stations, home internet networks, long-distance communication networks, and data centers each have different requirements for transmission distance, speed, temperature, size, and other conditions.
For this reason, optical transceiver companies need the ability to adapt products to the equipment and network environments used by their customers.
On its official website, OE Solutions presents its ability to consult with customers and customize products according to their requirements as one of its strengths. In its business report, the company also identifies product performance, price competitiveness, and customer service as major competitive factors in the optical communications industry.
OE Solutions’ experience in product development and approval across different telecommunications markets and overseas customers is also used in this process.
Experience in developing a new product, validating it on customer equipment, and connecting it to actual supply becomes a foundation for securing the next product and customer.
It Has Built a Base in Korea and Participates in the Global Market
OE Solutions’ market position is also worth examining.
In its 23rd Annual Business Report, the company states that it leads the domestic optical transceiver market.
OE Solutions has also established a business base in the global market.
Based on data from market research firm LightCounting, OE Solutions estimates the global optical transceiver market in 2025 at approximately KRW 23.5 trillion. The company estimates its global market share at around 0.24%.
The 0.24% figure is calculated against the entire global optical transceiver market.
This market includes a wide range of areas, from optical transceivers for mobile communications to fixed-line communications, long-distance networks, and high-speed optical transceivers for data centers.
OE Solutions generates actual revenue in this global market and supplies products to overseas customers, including a U.S. network equipment company. In 2025, its consolidated revenue by region was approximately KRW 24.3 billion in Korea, KRW 10.7 billion in the Americas, KRW 4.2 billion in Europe, and KRW 18.2 billion in Asia.
DANA NOTES sees OE Solutions as a specialized optical communications company with a domestic business base and proprietary technology that continues to operate in the global optical communications market.
Changes in its global market share, overseas customer revenue, and supply of high-speed optical communication products will help show the pace of its global business growth.
It Is Expanding from 5G into Fixed-Line Communications and Data Centers
OE Solutions’ next competitive strength can be seen in the expanding range of markets where its technologies can be applied.
The company identifies FTTH, CATV/MSO, Telecom, and Datacenter as major areas for business expansion alongside its existing 5G mobile network business.
In simple terms, these can be divided as follows.
- FTTH: a market that connects fiber internet to homes and buildings
- CATV/MSO: a network market used by cable communications operators
- Telecom: communication networks that connect cities and regions
- Datacenter: a market that moves large amounts of data quickly between servers and network equipment
OE Solutions is developing optical transceivers with different speeds and form factors for these markets.
In FTTH, it is mass-producing 10G products using its own lasers and developing 25G and 50G products.
In Telecom, it supplies 100G-class long-distance products and is increasing speeds to 200G and 400G.
In Datacenter, its development range extends from 200G and 400G to 800G and 1.6T-class optical transceivers.
As the numbers increase, more data can be transmitted at once.
OE Solutions’ continued development of faster products across multiple markets means that it is expanding its product portfolio in line with the trend toward higher-speed optical communications.
It Is Developing 800G and 1.6T Technologies for AI Data Centers
In AI data centers, large numbers of GPUs and servers exchange data simultaneously.
Even when GPUs perform calculations quickly, data must also move quickly between GPUs and between servers for the overall system to operate smoothly. As AI data centers grow, the role of high-speed networks and optical communications grows with them.
OE Solutions is developing 800G and 1.6T-class optical transceivers for this market.
Its proprietary laser technology is also developing alongside these products.
The company is developing high-speed laser chips that can be used in 800G and 1.6T-class optical transceivers. Its 23rd Annual Business Report includes development work on technologies such as 100mW-class high-power lasers and 100GBaud-class EMLs.
There is no need to remember every technical term here.
The key point is simple.
AI data centers need faster optical communications, and OE Solutions is developing both fast optical transceivers and the lasers used inside them.
It Is Also Developing a Device That Supplies Light to CPO
As AI data center networks become faster, the structure of optical communication equipment is also changing.
One technology receiving attention is CPO (Co-Packaged Optics).
CPO places optical communication devices close to the network semiconductor that processes data. This structure is designed to support high-speed networks by shortening the distance that data travels.
These optical communication devices require a light source.
OE Solutions is developing an external light source called ELSFP for this role. In simple terms, it is a device that generates and supplies the light required by CPO equipment. In its 23rd Annual Business Report, the company stated that it is working on related business cooperation with a large overseas customer.
In March 2026, it introduced a high-power ELSFP that provides 200mW of optical output per channel. Customer sampling is scheduled to begin in the third quarter of 2026.
OE Solutions’ technological scope expands once again here.
It has developed laser technology used inside optical transceivers, and it is now expanding that technology into products that supply light to optical communication devices in next-generation AI networks.
Lasers Can Also Become a Business of Their Own
The laser technologies developed by OE Solutions can be used in its own optical transceivers and can also be sold to other companies.
The company is developing various laser diodes for mobile communications, fixed-line communications, long-distance communication networks, and data centers, and it has also presented plans to expand external sales of laser diodes as an additional source of revenue.
The business structure can be viewed simply in two ways.
- Apply its own lasers to OE Solutions’ optical transceivers.
- Sell the lasers themselves to other customers.
One technology is connected to both the competitiveness of finished products and a new source of revenue.
This is also why OE Solutions continues to expand its laser chip development and production capabilities.
Key Areas to Watch Are Customer Approval and Mass Production
OE Solutions’ products are currently at different stages of commercialization.
The 100G coherent optical transceiver has completed customer approval and is being supplied. The 200G and 400G products are pursuing customer approval. Development of 800G and 1.6T optical transceivers for data centers is underway, while the high-power ELSFP for CPO is being prepared for customer sampling in the third quarter of 2026.
The progress of each product can therefore be followed through the following process.
Product development → customer testing → customer approval → orders → mass production → revenue growth
Its financial performance also shows signs of business expansion.
OE Solutions’ consolidated revenue in 2025 was approximately KRW 57.4 billion, up 79.2% from approximately KRW 32.0 billion in 2024. Consolidated operating loss was approximately KRW 16.0 billion, an improvement of around 47% year over year. The company explains that revenue growth from an expanded product portfolio, along with cost reductions, lower production costs, and improved production yields, contributed to the change in operating performance.
As customer approvals and mass production of new products continue, it will become possible to see more clearly how technological competitiveness translates into revenue and profitability.
This process serves as an indicator of how OE Solutions’ technological competitiveness is expanding into business competitiveness.
DANA NOTES Commentary
OE Solutions’ competitive strengths can be understood quite simply.
It makes optical transceivers, develops the core lasers used inside them, and connects its proprietary technologies to products that customers actually use.
Tunable optical transceivers have led to orders and shipments to a U.S. network equipment company, while 100G coherent optical transceivers have also moved through customer approval into supply. FTTH products using its own lasers have entered mass production as well.
The company is now expanding these technologies into AI data centers.
800G and 1.6T-class optical transceivers, high-speed lasers, and external light sources for CPO are all connected to optical communication technologies that move more data faster inside AI data centers.
The company-estimated global market share of around 0.24% also shows OE Solutions’ global business base. It operates in the global optical transceiver market and has accumulated experience in customer approvals and shipments overseas.
Looking ahead, OE Solutions can be evaluated by how far its 800G and 1.6T optical transceivers and CPO light sources progress into customer approval and mass production, how much its overseas customers and revenue expand, and how its profitability improves.
OE Solutions is expanding its business into faster communication networks and AI data centers based on its existing optical communication technologies. The process of connecting its ability to develop both optical transceivers and lasers to actual global business demonstrates OE Solutions’ competitive strengths.
