Largan sees variable-aperture ramp 3Q26, eyes CPO samples

Largan Precision, a major optical lens manufacturer, anticipates beginning the ramp-up of variable-aperture lens production in the third quarter of 2026. Additionally, the company is preparing to provide samples of Co-Packaged Optics (CPO) components. This outlook suggests Largan is expanding its technological focus beyond traditional smartphone camera lenses.

This development matters because variable-aperture technology could enhance smartphone camera capabilities, potentially driving demand for premium lenses. The move into CPO samples is significant as it positions Largan to participate in the growing market for high-speed data center interconnects, driven by AI and data center buildouts. These new areas could diversify Largan's revenue.

The mechanism involves Largan leveraging its expertise in precision optics manufacturing to develop more advanced smartphone camera modules, specifically those with variable apertures allowing for better photographic control. For CPO, Largan would apply its optical component manufacturing capabilities to integrate optical and electrical components directly within a single package for data centers, improving efficiency.

This news primarily moves Largan Precision (3008.TW) as it outlines future product growth areas. It could also indirectly affect smartphone manufacturers like Apple (AAPL) or Samsung (005930.KS) if Largan's variable-aperture lenses become a key feature in their devices. Furthermore, companies involved in data center infrastructure and AI chips, such as Nvidia (NVDA) or Broadcom (AVGO), could be relevant given Largan's entry into CPO.