Cloud Light, a beacon of innovation in optical solutions, exemplifies the transformative power of Hong Kong’s Science Park ecosystem. Founded in 2018 and rapidly ascending to global recognition with its recent $750 million acquisition by Lumentum, a market-leading designer and manufacturer of innovative optical and photonic products, Cloud Light showcases how strategic support and cutting-edge resources from HKSTP can propel a local startup into the international spotlight, revolutionising data and automotive industries with pioneering photonics technology.

Founded in 2018 and headquartered in Hong Kong, with R&D centres strategically located in Hong Kong and Taiwan, and cutting-edge manufacturing facilities in Dongguan, China, and Southeast Asia, Cloud Light has swiftly emerged as a pioneer in advanced optical modules for data centre interconnects and optical sensors tailored for the automotive industry.

Since its inception, Cloud Light has cemented its position as a frontrunner in optical technology innovation, boasting a seasoned core team with over 18 years of collective expertise and a strong foundation in superior manufacturing practices to ensure top-notch quality and customer satisfaction.

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In 2023, Lumentum Holdings Inc. announced the acquisition of Cloud Light for about $750 million, with cash payment and assumption of outstanding Cloud Light options. The acquisition, approved by both companies’ Boards and Cloud Light’s shareholders, aims to enhance Lumentum’s presence in the lucrative optical modules market for Cloud Light computing data centres. This move also highlights Cloud Light’s strategic importance within its field.

Innovations in photonics: Pioneering next-generation solutions

Cloud Light is at the forefront of innovation with its groundbreaking photonics solutions, specialising in data centre interconnects and optical sensors for automotive applications. A significant portion of Cloud Light’s revenue, exceeding $200 million in the past year, stemmed from sales of transceivers operating at speeds of 400G or higher. Notably, in Q2 of Lumentum’s Fiscal Year 2024, a significant portion of Cloud Light’s revenue from optical transceivers came from modules operating at 800G speeds.

With a focus on enhancing data transmission efficiency in data centres and providing cutting-edge optical sensing technology for the automotive industry, Cloud Light continues to push boundaries.

Through their pioneering approach, they are revolutionising how data is handled and sensed, contributing to the advancement of both information technology and automotive sectors.

“Our journey began in April 2018, predating the widespread integration of AI and machine learning in technology. Despite this, we recognised a growing dependence on data in daily life, anticipating the current era dominated by data. Today, the rise of mega data centres marks a significant shift in computational infrastructure, interconnected to form a vast network. However, two challenges arise: the need for faster data transmission and logistical issues due to the size of data centres,” shared Dr Dennis Tong, Co-Founder and General Manager of Cloud Light, a Lumentum Company.

“Fibre optics have emerged as a solution for spanning large distances with minimal latency, requiring the integration of transceivers for seamless data transfer. This fusion of advancements reflects our ongoing commitment to innovation in data infrastructure,” Dr Dennis Tong added.

Strategic footprint and intellectual property

Underscoring the importance of data centres not only in Hong Kong but across the globe, Ir Dr HL Yiu, Chief Corporate Development Officer of Hong Kong Science and Technology Parks Corporation (HKSTP), shared, “The AI computer is a lot like the architecture of the human brain, we need something to connect the neurons, the cells. Basically, what [Cloud Light] is doing is operating as the brain connector. The faster the connection, the faster the thought process. This is borrowed from the telecommunication idea that you need to connect the data centre system to run faster. I think that trend cannot be stopped. The general trend is that for an economy to develop, the importance of data is no question.”

With all these trends putting them in a very strategic position, Cloud Light situated its R&D centres in Hong Kong, leveraging the region’s vibrant tech ecosystem and proximity to key markets. This strategic footprint enhances agility in product development and fosters collaboration with global partners.

Furthermore, Cloud Light boasts over 100 registered patents, a testament to its robust technological foundation and unwavering dedication to innovation. These patents not only safeguard intellectual property but also showcase the company’s pioneering advancements in high-speed connectivity solutions.

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“Vertical integration, encompassing property ownership and manufacturing capabilities, stands as our primary differentiator, granting control over design and production. This strategic fusion is essential to expedite time to market, which is crucial in today’s fast-paced product life cycles. Swift market entry, exemplified by our pioneering launch of 400G products, underscores this necessity,” explained Dr Dennis Tong.

“Our journey toward integration and innovation often begins from necessity, as seen in our development of in-house manufacturing for silicon photonics technology. This convergence of integration, market agility, and AI-driven innovation reflects the dynamic essence of modern industry, where adaptability and foresight reign supreme,” he added.

Diversity and expertise: The driving forces behind success

“Cloud Light stands out, and one of the key reasons is the level of technology being very deep when it comes to making their products work. Of course, the level of care and the viability of their products are also some of the important factors. The proof of this is the market acceptance of their products and also the recent acquisition,” shared Ir Dr HL Yiu.

Cloud Light’s diverse and experienced team stands as the backbone of innovation and excellence in the realm of optical product design and manufacturing, providing the company with the grasp and dexterity needed to pioneer such advancements. With over 18 years of collective experience and a considerable portion holding advanced degrees in relevant domains, their proficiency is unmatched.

This multicultural R&D ensemble not only brings a wealth of academic capabilities but also a spectrum of perspectives crucial for tackling multifaceted challenges. Situated strategically in Hong Kong, they tap into the city’s cosmopolitan ethos and robust educational infrastructure. Hong Kong’s position as an international hub fosters a dynamic talent pool, enabling Cloud Light to assemble a team of exceptional individuals.

“Hong Kong stands as an ideal of global connectivity, cultural diversity and innovation, epitomising the essence of a true melting pot, providing an unparalleled advantage that is hard to replicate elsewhere. The city’s cultural richness is complemented by its academic competence, boasting a cluster of renowned universities, several of which hold global acclaim in science and engineering. This abundance of intellectual capital ensures a steady stream of talent, ready to fuel the engines of innovation. Moreover, initiatives like the HKSTP play a pivotal role in nurturing startups, particularly during challenging times like the COVID-19 pandemic. The unwavering support provided speaks volumes about the commitment to fostering entrepreneurial success,” commented Dr Dennis Tong.

HKSTP supports startups’ growth throughout their whole development lifecycle with various resources ranging from state-of-the-art lab facilities, and networking to end-to-end R&D support.

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On the future direction of Cloud Light, Dr Dennis Tong added, “Despite our advantages, there’s room for improvement. Successful companies in Hong Kong require more than just technology; they need a deep understanding of market needs and a global mindset. With these strengths, Hong Kong is primed to nurture thriving enterprises that meet the ever-evolving demands of the market”.

HKSTP plays a pivotal role in fostering innovation and supporting companies in Hong Kong. Through its comprehensive ecosystem, HKSTP provides state-of-the-art infrastructure, laboratories, and shared facilities that empower companies to develop and commercialise groundbreaking technologies. Moreover, HKSTP offers tailored support programs, mentorship, and access to funding opportunities, enabling companies to accelerate their growth trajectories. By facilitating collaboration between industry players, academia, research institutions and corporate partners, HKSTP cultivates a dynamic environment where ideas flourish and businesses thrive, ultimately driving the advancement of Hong Kong’s technology sector on both local and global scales.

“For deeptech startups, proximity to manufacturing support is very important to speed up the commercialisation. Time is money. Commercialisation support is very important. In that regard, HKSTP plays an important role in connecting these resources: commercialisation resources, research resources, and funding resources supplemented by our support programs, altogether helping the startups excel,” expressed Ir Dr HL Yiu, emphasising the various levels of support that HKSTP is able to render for promising innovators.

To leverage this exciting ecosystem, forward-thinking business leaders, partners, and customers should connect with HKSTP and its partner companies by filling out this form. For more information, visit HKSTP’s website here: https://www.hkstp.org/.

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This article is produced by the e27 team, sponsored by HKSTP

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