[News] Coherent Signs Long-Term Supply Agreement with China-Based VOT for 6-Inch InP Substrates

What happened

On November 6, VOT announced that its controlled subsidiary, Guangdong Xianrui Technology Co., Ltd. (Xianrui Technology), had signed a long-term supply letter of intent with Coherent Corp. Under the agreement, Xianrui Technology will supply 6-inch indium phosphide (InP) substrates to Coherent's facilities in Switzerland and Sweden from 2027 to 2029, with an estimated transaction value of no less than USD 601 million; the two parties may extend the supply period by another year, subject to mutual agreement on pricing and volume. Founded in December 2025 with registered capital of approximately CNY 100 million, Xianrui Technology is jointly held by VOT (50.0832%) and Qingyuan Xiandao Special Materials Co., Ltd., a subsidiary of Vital Materials (42.8955%). Xianrui Technology has completed three generations of crystal development from 2-inch to 4-inch and then 6-inch substrates and is among the first manufacturers in China to introduce 6-inch InP substrates. As of the end of September, it had nearly 10,000 units of 6-inch InP substrates in its order book, and overseas orders for 6-inch substrates accounted for approximately 63% of the total value of its overseas orders. VOT reported revenue of CNY 2.093 billion for the first three quarters, up 45.04% YoY; net profit attributable to shareholders reached CNY 84.28 million, up 1,036.93%, and adjusted net profit attributable to shareholders stood at CNY 118 million, up 1,132.94%. In the third quarter alone, revenue totaled CNY 900 million, up 112.68% YoY, and net profit attributable to shareholders reached CNY 93.48 million, turning from a loss in the same period last year to a profit.

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Source: TrendForce · 11/10/2026 · View original source