(Yicai) Sept. 7 -- Shares of MeiG Smart Technology surged by their daily trading limit after the Chinese wireless communication modules and Internet of Things solutions provider said it plans to ally with domestic indium phosphide laser chip startup Xingyuan Optoelectronics Technology to set up a joint venture to develop and produce optoelectronic devices to meet surging demand for such components in artificial intelligence data centers.

MeiG Smart [SHE: 002881] closed 10 percent higher at CNY46.12 (USD6.87) a share in Shenzhen today. Everbright Photonics [SHA: 688048], a major shareholder in Xingyuan Optoelectronics, soared 10.3 percent to CNY300 (USD44.70) in Shanghai.

MeiG Smart, its shareholding platform for senior management and core technical staff, and Xingyuan Optoelectronics will set up the JV in Shanghai, focusing on researching, developing, and manufacturing optoelectronic devices, the Shenzhen-based company announced late on Sept. 4. Under an investment agreement, MeiG Smart will hold 70 percent of the new firm, the platform 20 percent, and Xingyuan Optoelectronics the rest.

The JV will conduct research and development, design, and packaging of optical devices, optical engines, related modules, and subsystems, based on high‑end InP laser chips supplied by Xingyuan Optoelectronics, MeiG Smart said. The new firm will also integrate external digital signal processor chips and other core supply chain resources to develop and package complete optical communication modules for data centers, it added.

In addition, the JV will leverage the respective technical expertise and supply chain management capabilities of MeiG Smart and Xingyuan Optoelectronics, aiming to build a full‑fledged R&D system, product portfolio, and delivery capacity to quickly respond to global demand.

Established last November, Xingyuan Optoelectronics counts California‑registered optoelectronic technology firm ExOptronics as its largest shareholder, while MeiG Smart will take an 11.6 percent stake in the company after the JV deal closes.

Xingyuan Optoelectronics mainly develops high‑end InP laser chips, devices, related modules and subsystems, MeiG Smart noted, adding that its products are intended for AI data center optical communication, frequency‑modulated continuous‑wave lidar, and optical fiber sensing scenarios.

Editor: Martin Kadiev