A high-end compound semiconductor substrate project with a total investment of RMB 2 billion (approximately USD 280 million) has been officially approved and will be established in Quzhou, Zhejiang Province, according to the Zhejiang Provincial Online Investment Project Approval and Supervision Platform.

The project will be developed by Vital Micro-Electronics Technology (Zhejiang) Co., Ltd. and is designed to deliver an annual production capacity of 3 million gallium arsenide (GaAs) substrates and 3 million indium phosphide (InP) substrates, for a combined output of 6 million wafers per year. Construction is scheduled to run from August 2026 to August 2029.

The company will upgrade and expand its existing manufacturing facilities, introducing advanced crystal growth, precision polishing, and defect inspection equipment. The project will focus on the production of 4-inch to 6-inch high-end GaAs and InP single-crystal substrates, providing a stable supply of key materials for downstream photonic chip, optical module, and RF device manufacturers.

Vital Micro-Electronics Technolog, an indirectly controlled subsidiary of Vital Group, was the first company in China to achieve mass production of 6-inch InP substrates and 8-inch GaAs substrates. The company currently operates production lines covering 2-inch to 8-inch GaAs substrates and 2-inch to 6-inch InP substrates, with established annual production capacities of 3.6 million GaAs wafers and 240,000 InP wafers. Its products have been qualified by leading domestic photonic chip and optical module manufacturers.

Notably, its parent company Vital Group has built a vertically integrated supply chain spanning the optical communications industry, from upstream rare metal refining to downstream optical modules.

On the strength of its expertise in refining critical metals such as indium, gallium, and germanium, the group manufactures 8-inch GaAs and 6-inch InP substrates through Guangdong Pioneer Microelectronics. Its subsidiary CS Microelectronics produces epitaxial wafers and laser chips, including VCSEL, MPD, APD, and EML devices for optical communication applications.

On the module side, Vital Group’s another subsidiary HiPhoton Wuhan has commercialized 400G and 800G optical transceivers while advancing development of 1.6T and co-packaged optics (CPO) technologies. The group’s integrated footprint—from raw materials and substrates to chips and optical modules—makes Pioneer Technology one of the few Chinese companies with a fully integrated and domestically controlled optical communications supply chain.

(Photo credit: FREEPIK)

TrendForce 2026 Infrared Sensing Application Market and Branding Strategies
Release: 01 January 2026
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