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De Ke Li to invest 1.2B yuan in AI compute and data center optical connectivity project

De Ke Li announced a plan to invest about 1.2 billion yuan ($165 million) in a project to expand production capacity for high-end optical connectivity products used in AI compute and data centers. The investment covers 300 million yuan for land and construction, 850 million yuan for equipment, and 50 million yuan for working capital. The project will build production lines for DCI, high-speed optical modules including coherent modules, and OCS, and still requires shareholder approval.

Original source

AI take

The capex breakdown is the real signal here: roughly 70% of the outlay goes to equipment, not land or buildings, which points to a bet on process capability rather than sheer footprint — the harder part of optical connectivity to scale. The product mix also matters, since DCI, coherent modules and OCS sit closer to the AI data center buildout than commodity optics, where Chinese suppliers have long competed on price. Shareholder approval remains the gate, and whether the equipment spend translates into qualified output is the open question worth watching.

Generated by AI for reference only.

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