AI-driven demand is intensifying shortages across the optical communications supply chain, with pressure extending from laser chips, TIA and DSP components to PCBs, substrates and packaging capacity. Elite Advanced Laser said the imbalance could persist for several more years, while industry commentary from Serenity suggested photonics may be entering a supercycle resembling the memory industry's earlier expansion and potentially lasting through 2027 or longer. Elite Advanced Laser said its optical sub-assembly, or COSA (component packaging for optical engines), capacity has been fully utilized for years and has been expanding at nearly a doubling pace annually since 2024. Capital expenditure is projected to reach NT$1.6 billion this year after about NT$260 million in 2024 and NT$1.1 billion in 2025, while the board has approved a NT$3 billion fundraising plan for debt repayment and equipment purchases to support further expansion. The company said optical connectivity is becoming an essential part of AI network architecture, underpinning demand for its three main AI platforms: COSA advanced packaging, high-speed optical transmission modules, and CPO/NPO external light sources. In modules, subsidiary Landmark Optoelectronics is ramping 400G and 800G products, with 800G already shipping in small volumes and 1.6T in customer validation and pre-production qualification. AI-related optical products made up 45.5% of first-half revenue, up from 32.7% a year earlier, while traditional power components and legacy products declined as a share of sales. Elite Advanced Laser also highlighted its Taiwan manufacturing base as a commercial advantage, saying Landmark's products are fully designed, made and packaged in Taiwan and comply with Taiwan origin and TAA rules after reviews by U.S. authorities. The company said second-quarter EPS rose to NT$2.09, up 200% from the prior quarter, as product mix improved. It is also positioning for co-packaged optics, arguing that external light sources could become a major demand driver because each CPO module is planned to require 18 such light sources.