KUALA LUMPUR: EG Industries Bhd said its subsidiary, Genetronic (Malaysia) Sdn Bhd, has entered into a letter of intent (LOI) with a US-based firm for the manufacture and sale of high-performance open networking switches incorporating state-of-the-art Co-Packaged Optics (CPO) technology.

The collaboration, which is expected to generate about US$100mil in revenue, marks the group's expansion into high-growth data centre infrastructure and advanced AI networking solutions.

In a statement, the group said the customer, which was not named, is a global provider of open networking solutions, specialising in high-performance Ethernet switches for hyperscale cloud and AI data centres. 

Through this collaboration, EG Industries will manufacture advanced CPO-based network switches designed to deliver higher bandwidth, lower power consumption and improved efficiency for next-generation AI infrastructure.

EG Industries group CEO Datuk Alex Kang said the LOI validates the group's progress in development its expertise and manufacturing capabilities to support Linear Pluggable Optics (LPO) and CPO technologies.

Following this partnership, he is confident there will be additioanl purchase orders for CPO products to follow as customer programmes progress.

"Looking ahead, EG Industries remains confident in its long-term growth prospects as demand for AI-driven networking infrastructure, hyperscale data centres and next-generation connectivity solutions continue to expand globally,' he said.

 

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