Coherent CEO: Optical networking has 'some advantages' over other technologies in space

June 26, 2026 - 17:17

Coherent CEO Jim Anderson appeared on "Squawk on the Street" to discuss the company's recent developments and strategic outlook, including a letter of intent for up to $50 million in direct funding under the CHIPS and Science Act. Anderson emphasized that optical networking holds distinct advantages over other technologies when deployed in space.

He pointed out that fiber optics and related photonic systems offer superior bandwidth and lower latency compared to traditional radio frequency communications, which is critical for satellite constellations and deep-space missions. The harsh environment of space demands components that are both highly reliable and energy-efficient, and Anderson argued that optical solutions are uniquely positioned to meet those requirements.

The CEO also touched on the company's broader growth strategy, noting that demand for fiber optics continues to rise across multiple sectors, including data centers, telecommunications, and aerospace. The potential CHIPS Act funding would support domestic manufacturing of advanced photonic chips, reducing reliance on foreign supply chains.

Anderson did not provide a timeline for the funding finalization but expressed confidence that optical networking will play a central role in the next generation of space-based infrastructure. The interview concluded with a focus on how Coherent plans to scale production to meet growing global demand.