Cambridge Technology completes Hong Kong stock placement, raising nearly 2 billion to lock in the supply of optical module components

On June 5, Cambridge Technology announced the completion of the Hong Kong stock placement and successfully raised approximately HK$1.976 billion. This capital will be mainly invested in the strategic reserve of core components of high-speed optical modules.

Cambridge Technology was established in 2006 and listed on the main board of the Shanghai Stock Exchange in 2017. The company started with telecommunications broadband access equipment in the early days, and later gradually expanded its business territory to wireless networks, small base stations, edge computing and industrial interconnection.

Around 2020, Cambridge Technology captured the opportunities brought by the explosive growth of data centers and officially entered the high-speed optical module track, thus forming a two-wheel drive development layout of ICT terminal equipment and high-speed optical modules. Currently, the company has R&D centers or production bases in Silicon Valley, Japan, Europe, Shanghai, Jiashan, Taiwan, China, and other places. Its products are tied to global mainstream telecom operators and leading North American cloud manufacturers, with a monthly production capacity of more than 900,000 units.

The H-share placement was officially completed on June 4. The company issued 15.6 million new shares to no less than six independent placees at a price of HK$126.66 per share, net raising approximately HK$1.967 billion after deducting commissions and related expenses.

About 80% of the proceeds will be used for strategic reserves of core components such as DSP chipsets, silicon photonics chipsets, and continuous wave laser devices, and the remaining 20% ​​will be used to supplement working capital and general corporate purposes.

Cambridge Technology said that the vast majority of funds raised are invested in component reserves, and the reason behind it is that it is optimistic about the chain reaction of the industrial chain caused by the explosion of AI applications.

As major cloud vendors around the world continue to increase their computing power infrastructure construction, 800G and 1.6T high-speed optical modules have become standard products for data center optical interconnection, and market demand is growing exponentially. However, there is a serious shortage of core components supporting these high-end optical modules, including high-speed DSP chips for 800G and 1.6T optical modules, 100G/channel and 200G/channel silicon photonic chips, and continuous wave laser devices with output powers from 70 mW to 200 mW.

Not only do these material components have significantly longer lead times, they also require deposits or prepayments in advance to lock in production capacity. Therefore, Cambridge Technology raises funds to invest in relevant upstream links to ensure a stable supply of key materials.

Judging from business progress, Cambridge Technology is on a rapid upward trajectory in the field of optical communications. The company's 800G optical modules have been delivered in large quantities and will be the main product shipped in 2026;

The higher-end 1.6T optical modules have also been supplied in small batches and will enter the large-scale mass production stage in the first quarter of this year.

In terms of production capacity layout, the domestic Jiashan base has been upgraded to a global smart manufacturing core factory, the Malaysian base has completed expansion and doubled its production capacity, the Mexican factory is under construction, and the overall annual production capacity target is moving towards 5 million units.

Driven by the demand for AI, Cambridge Technology's financial data has been outstanding. The company achieved operating income of 1.287 billion yuan in the first quarter of 2026, a year-on-year increase of nearly 44%, and the net profit attributable to the parent company surged by more than 276% year-on-year.

With the rapid growth of performance, Cambridge Technology has also begun to actively deploy next-generation optical interconnection technologies such as NPO and CPO, and pre-research technical solutions for application scenarios with a total bandwidth of 102.4T or even 204.8T.