Coherent develops and manufactures photonic components, modules, and systems, primarily for data center and communications networking, with a secondary business in industrial applications. The core product is optical transceivers — components that convert electrical signals to light signals, enabling high-speed data transmission inside and between data centers. Coherent sells transceivers at 400G, 800G, and the emerging 1.6T speeds to hyperscalers like Microsoft, Google, Amazon, and Meta, as well as enterprise data center operators. Coherent is also a major telecom supplier of coherent transceivers, pump lasers, and data center interconnect equipment. The industrial segment covers laser systems for semiconductor and OLED display manufacturing, precision manufacturing, scientific instrumentation, and engineered materials including silicon carbide substrates for EV power electronics and 5G. A key feature of Coherent's model is vertical integration: Coherent manufactures many of the components inside its own transceivers, including InP-based lasers, GaAs VCSELs, and integrated circuits, which provides supply chain resilience and cost advantages at scale. Revenue and margins benefit as the product mix shifts toward higher-speed transceivers, which carry higher average selling prices. Coherent is also developing new products including optical circuit switches for all-optical data center switching and co-packaged optics technologies. The company recently began production on the world's first commercial 6-inch InP wafer line, which expands capacity and reduces per-unit costs, and is exiting non-core businesses to reduce debt.