Translation. Region: Russian Federal
Source: People's Republic of China in Russian – People's Republic of China in Russian –
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Source: People's Republic of China – State Council News
NANJING, Sept. 19 (Xinhua) — The Wuxi High-Tech Zone, a comprehensive bonded industrial zone in east China's Jiangsu Province, is home to numerous high-tech enterprises producing key products and components that drive the development of emerging industries such as artificial intelligence, cloud computing, 5G, and the Internet of Things.
Among them is Finisar Wuxi, a subsidiary of the American optical materials and semiconductor manufacturer Coherent. Founded in 2011 in a bonded industrial complex, Finisar Wuxi currently primarily produces optical transceivers and components for customers worldwide.
At a press briefing held in the zone this week, Finisar Wuxi announced the expansion of production capacity at its Wuxi site, with a total investment of approximately US$460 million.
Explaining the increased investment in the Wuxi production line, the company said it took advantage of the explosive growth of OpenAI and cloud computing from the second half of 2023 to develop advanced optical modules and expand production, despite trade and tariff challenges.
In February 2024, the company launched a new project, adding 8 million units of high-speed optical transceiver production capacity per year. According to the company, additional expansions include a recent application for an 8-million-unit 800G optical module production line and plans to manufacture optical switches (OCS) in Wuxi.
Data provided by the company showed that in the first eight months of this year, the company's industrial output reached 8.63 billion yuan (approximately $1.2 billion), a 29 percent increase compared to the same period last year. The company's combined import and export volume also increased by more than 26 percent over the same period, demonstrating robust growth.
According to a company source, the decision to increase production investment is driven by China's advantages in manufacturing and R&D. When making investment decisions, the company also considers whether it can achieve production goals within its limited resources and timeframe.
The source also explained that the key priority for Finisar Wuxi now is to find new sites within the zone to support expanded production.
With the rapid growth of emerging industries such as artificial intelligence in major markets including China, the expansion of production capacity in related industries reflects China's continued attractiveness to foreign investment, which stems from the country's industrial clustering effect and the advantages of a comprehensive supply chain, allowing companies to maximize output within a limited timeframe and with limited resources, local commerce officials said.
Wang Licheng, head of the Comprehensive Bonded Zone, highlighted the zone's clustering effect, driven by its strengths in integrated circuits, electronics and information technology, and optical communications. He reported that despite the challenging trading environment, the zone recorded a 26% increase in trade volume from January to August of this year, led by advanced technology sectors such as integrated circuits and optoelectronics.
Also located in the zone is Jabil Circuit /Wuxi/ Co., Ltd., a subsidiary of US-based manufacturing solutions provider Jabil, which provides design and manufacturing services across various sectors, including electronics, communications, the Internet of Things, and alternative energy.
Although trade tensions and weakening demand for electronics negatively impacted the company's exports last year, the company remains optimistic about a recovery in growth in the next few years, according to operations manager Zhao Songping.
He noted that Jabil Circuit is actively optimizing its development strategies, including strengthening partnerships with leading Chinese enterprises in the fields of renewable energy and communications, while accelerating the modernization of smart manufacturing and diversifying its market strategies.
“Thanks to our strong technical expertise, complete supply chain in China, and favorable policies from the Chinese government, we expect our business to stabilize by 2026 and return to growth in 2027,” Zhao Songping concluded. -0-
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