Dongshan Precision Adds $500 Million to Optical Chip and Module Projects, Total Rises to $1.7 Billion

Dongshan Precision announced on August 21 that it will add $500 million in investment to its optical chip and optical module expansion projects implemented by its subsidiaries Sorrento Photonics and its subsidiaries, Visteon Thailand, and Yancheng Dongshan in Changzhou, Thailand, and Yancheng. The total project investment will be raised from $1.2 billion to $1.7 billion. The adjustment is based on the company's strategic planning, project implementation needs, and the development trend of the AI computing power industry, with funds coming from the company's self-raised capital. In June 2026, Dongshan Precision's board of directors approved the proposal on foreign investment, agreeing that Sorrento Photonics and its subsidiaries would implement the optical chip and optical module expansion projects in Changzhou and other locations, with an initial total investment of $1.2 billion, also funded by self-raised capital. On August 20, the board approved the proposal to increase the foreign investment amount, adjusting the investment matters. After the adjustment, the implementation entities remain Sorrento Photonics and its subsidiaries, Visteon Thailand, and Yancheng Dongshan, with the total investment increased to $1.7 billion. Dongshan Precision entered the optical communications field through the acquisition of Sorrento Photonics in 2025, becoming one of the few domestic enterprises capable of mass-producing high-end EML optical chips. The company is mainly engaged in the global design, production, and sales of electronic circuits, optical modules (including optical chips), precision components, and optoelectronic display modules, with products widely used in consumer electronics, automotive, data centers, communication equipment, and industrial control equipment. In the first half of 2026, Dongshan Precision achieved operating revenue of RMB 27.798 billion, a year-on-year increase of 63.95%, and net profit attributable to the parent company of RMB 2.957 billion, up 290.09% year-on-year. During the reporting period, in addition to the consolidation effect of Sorrento and GMD, the optical module business continued to introduce new customers and new products, leading to a substantial increase in revenue.