When I was listening to Lily Wu she presented a good argument as to why they are buying DL and what China’s goals are.  China has historically been the world’s manufacturing engine based on a cheap labor force who work very hard. The automation of manufacturing processes is now recognized as a need for China to maintain its ability to remain a low cost producer of finished goods.  

Interestingly POET’s optical  engines do not require the same level  of human intervention since the alignment of  optical components are performed by highly precise mating features and lightning quick pick and place tools along and the automated bonding process of  active components to the optical and electrical interposers.

A rapid throughput that does not rely on low cost labor that has typically been the bread and butter of China.     

What is very interesting is that China sees the POET optical engine as enabling the automation of their country in order to maintain manufacturing dominance. It is hard for me to imagine the value that the sensing technology capability has to modernize the worlds manufacturing engine and it is  a peripheral vertical  to  POET value chain so I  am satisfied that the relationship is  a win win.

One of our Agoracom members spoke with Lilly in her native tongue and she assured him that their interests are restricted to building out the active components that are required for the engine. And really when I  think  about what it  is that Suresh has designed you begin to  understand that it is  a culmination of two  technologies that are very advanced. The high end packaging side that is driven by efforts to  make the high end smart phones thinner, faster, more energy efficient portable devices and  those very advanced chip packaging processes applied to the optical interposer based engine.

That is actually one area that was not covered by the presentation that is going to be very exciting for people to learn about which means it is approaching the time for me to nudge the company to provide a white paper for shareholders to read on the subject.

Again it is  Suresh's knowledge and vision that has made this  possible.