'New Stock God' Serenity: Optimistic About Semiconductor Foundry XFAB, European CPO Deployment May Be Undervalued by the Market

BlockBeats News, June 6, 'New Stock God' Serenity published an article stating that they remain optimistic about the semiconductor foundry XFAB (PhotonixFAB), believing the company has the potential to become an early-stage TSEM (Tower Semiconductor). The current market capitalization of approximately $1.4 billion does not yet reflect its long-term value in the co-packaged optics (CPO) field. Serenity noted that XFAB is leveraging next-generation integration solutions such as micro-transfer printing (MTP) and thin-film lithium niobate (TFLN) to position itself for the large-scale commercialization inflection point of CPO in the second half of 2027. According to ASX documents, PhotonixFAB is listed as one of the manufacturers focused on CPO. They mentioned that NVIDIA is evaluating whether XFAB's optical transceiver and switch solutions can achieve mass production, while Nokia is responsible for related specification development and assembly work. If the European supply chain, including Smartphotonics, operates smoothly, XFAB is expected to benefit from capacity expansion driven by NVIDIA's long-term orders, similar to Tower Semiconductor. Serenity believes that XFAB's current valuation is already below replacement cost and that it also has growth opportunities in silicon carbide (SiC) and gallium nitride (GaN) power semiconductor businesses. Additionally, it may benefit from future new chip subsidy policies in Europe and the United States. They pointed out that due to Europe's push to establish an independent photonics supply chain, coupled with NVIDIA's desire to strengthen its relationship with European regulators, XFAB has a high probability of receiving partial project support even if it fails to secure large-scale orders in the future. However, since the market tends to wait for clear catalysts such as 'NVIDIA signing multi-billion-dollar contracts,' the company's valuation may already be significantly higher by then. As a result, the market has almost not assigned the appropriate value to its European CPO exposure. [Original Link]