Seoul Viosys begins mass production of 25Gbps VCSELs for 5G communication

· With the launch of 25Gbps VCSELs, Seoul Viosys is targeting the $1.1 billion VCSEL market, including 5G and data communication applications.

· Seoul Viosys is fully capable of mass-producing VCSELs and has received preliminary approval to supply three major customers.

· Mass production of VCSELs for sensor applications is scheduled to start in Q1 2021

Seoul Viosys (KOSDAQ: 092190) recently announced that it has successfully developed vertical-cavity surface-emitting laser (VCSEL) technology for the first time in South Korea and has begun mass production. This is a 25Gbps laser diode designed exclusively for short-range communication, compatible with transmission and reception in 5G wired networks, and will initially be supplied to three major customers.

[Figure 1] Schematic diagram of 5G network applications using Seoul Viosys VCSEL technology

VCSEL is a laser diode technology that converts electrical signals into optical signals. As an optical communication technology capable of enabling ultra-high-speed data communication in 5G environments, VCSEL has recently attracted widespread attention. VCSEL is an essential technology in applications such as augmented reality/virtual reality (AR/VR), 3D sensing on smartphones, ToF (Time-of-Flight) for cameras, and automotive LiDAR.

According to market-leading compound semiconductor market research firm Yole Développement, the global VCSEL market is expected to grow at an annual rate of 18.4%, rising from $1.1 billion in 2020 to $2.7 billion by 2025.

Seoul Viosys' VCSEL technology for sensors has received customer recognition and Certification, and will enter mass production in Q1 2021. LiDAR technology is also under review awaiting customer Certification and will be supplied to an automotive system Solution provider.

The 25Gbps VCSEL developed by Seoul Viosys is a high-performance laser diode technology that emits laser light vertically from the semiconductor substrate surface, enabling high-speed communication. In the current 25Gbps VCSEL market, three major US companies (II-VI, Lumentum, and Broadcom) are actively competing for market dominance, as the selling price of such high-value-added products is more than 10 times that of ordinary LED.

Depending on the intended application, Seoul Viosys's 25Gbps VCSEL can be configured in single-channel or four-channel modes. The four-channel configuration offers a transmission rate of 100Gbps (4x), enabling high-capacity, high-quality data reception and transmission. Although VCSEL technology is challenging to implement, its future application prospects are very broad, as it is more price-competitive compared to edge-emitting laser diodes.

[Figure 2] Seoul Viosys' 25Gbps VCSEL (left) and 100Gbps 4-channel VCSEL (right)

An executive at Seoul Viosys stated, "As lifestyle patterns shift, the world has recently entered the 'contactless era.' Since VCSEL is a key technology for realizing IoT environments, market interest in VCSEL is growing. Seoul Viosys will continue to develop VCSEL technology and expand its applications, applying our differentiated VCSEL technology to areas such as 5G-based smart cities, autonomous driving applications, AR/VR, and the industrial IoT market."