Lightwave Logic Inc (LWLG)

[KCCO7913]

That $1,000 figure would likely be the entire module and the trend over the next couple years is to get the module cost under $1/G.

If it is selling for $1,000…the cost is likely around $850. Margins for transceiver makers is around 15%. Maybe a smidge higher.

That $850 is very generally comprised of the optics components, electrical components, the plastic packaging, and manufacturing overhead including assembly and test.

The primary electrical component is the DSP and that is the most expensive individual component in a transceiver. Another main component here is the modulator driver which can either be external or within the DSP. Note that LWLG’s modulators propose to remove the need for drivers. So it is likely a less complicated (ie less expensive) DSP will be used.

The primary optical component is the modulator. You could argue it’s the laser but lasers are very standard today and even with future transceivers, lasers will remain very standard. At 800G+, and especially 200G per lane, the primary value in the optics is found in the modulator.

I am thinking that LWLG’s upcoming PIC includes lasers since part of the lab expansion is being used for “laser characterization”. This means that LWLG is potentially providing the entire optics portion of the transceiver. We already know the PDK includes the passive waveguides, coupling structures, splitters, etc.

So…LWLG’s value proposition is supplying the smallest, most efficient, and scalable modulator PIC platform that simplifies transceiver design and lowers cost.

Yup I’m going to hang in here as long as it takes.