Sungho Electronics, LG Innotek sign MOU on optical connection technology

Sungho Electronics has teamed up with LG Innotek to pursue cooperation in optical communications, robotics, aerospace and other emerging fields — opening the door to collaboration between domestic components and equipment makers in the optical connection space, a technology drawing attention for its potential to ease AI data processing bottlenecks.

Sungho Electronics announced Wednesday that it signed a memorandum of understanding with LG Innotek to cooperate on future business areas. At the heart of the partnership is optical connection technology, which directly links semiconductor chips and optical components within a package to improve data transmission efficiency. As markets for AI servers and high-performance computing expand, the technology is increasingly cited as a next-generation solution capable of improving both data transfer speeds and power efficiency at the same time.

Sungho Electronics has been accelerating its push into the optical connection market through its acquisition of ADS Tech, a specialist in active alignment equipment — a key process in co-packaged optics (CPO) manufacturing. Active alignment involves assembling and aligning optical components with nanometer-level precision and is widely regarded as a critical factor in determining CPO mass production competitiveness.

Through the partnership, Sungho Electronics plans to focus on developing optical precision technologies including photonics alignment, assembly and inspection, ultra-precision bonding, active alignment and micro-assembly. The company will also handle full-cycle technology verification, from the concept stage through prototyping, new product introduction and pilot conversion.

LG Innotek will review technology and systems-based cooperation for jointly pursued projects in optical communications, robotics, aerospace and other future business areas. When needed, the company will also assess mass production feasibility and evaluate applicability to production lines.

The two companies plan to jointly set performance, yield and reliability targets for each stage — prototype, pilot and mass production — and will cooperate on customer development, business feasibility reviews and project execution planning.

"Combining the active alignment capabilities we secured through the ADS Tech acquisition with LG Innotek's technology and mass production systems will generate strong synergies in optical communications, including optical connection," Park Sung-jae, chief executive of Sungho Electronics, said. "We will create new growth engines by expanding our technology into future industries such as robotics and aerospace."