Optical communication concept stocks continued to decline, according to market data. As of press time, CIG Shanghai Co Ltd (HKEX: 06166) fell 5.38% to HK$61.6; Zhongji Innolight Co Ltd (HKEX: 03308) dropped 4.17% to HK$667; Ju Hui Technology (HKEX: 01729) declined 3.97% to HK$11.6; and Yangtze Optical Fibre and Cable Joint Stock Ltd (HKEX: 06869) slid 3.26% to HK$103.7.
On the news front, Marvell Technology (NASDAQ: MRVL) announced it would acquire optical component manufacturer Lumentum (NASDAQ: LITE) in an all-stock deal valued at approximately $115 billion. However, shareholders of both companies expressed strong dissatisfaction with the transaction. On Monday, Lumentum shares fell 18.6% in a single day, while Marvell Technology shares dropped 12.7%.
According to the announcement, the deal is expected to close in the first half of 2028. As it involves a critical global optical communication supply chain, the acquisition still requires regulatory approval from multiple countries.
It is worth noting that if the acquisition is ultimately completed, two important types of upstream components in the global optical module market will be concentrated in the hands of a single company. For Chinese optical module manufacturers, this represents potential new changes in procurement, pricing negotiations, and supply chain management, and may also push more companies to accelerate their search for alternative suppliers.
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