POET Technologies Brings in a Production Veteran as a $2 Billion Valuation Hinges on a Malaysian Assembly Line

The optics specialist POET Technologies carries a market capitalization near $2 billion — but generated just $1.07 million in revenue last year. That chasm between promise and execution has driven a management shake-up. The company has poached a longtime Silicon Labs executive to force the leap from laboratory prototypes to high-volume manufacturing.

Sandeep Kumar took over as chief operating officer on May 12, tasked with ramping production at POET’s facility in Malaysia. The plant is expected to churn out optical engines and light sources for AI networks and data centers — exactly the kind of components that require not only technical performance but also reliable, scalable supply. Kumar spent more than 18 years at Silicon Labs, where he ran global operations including supply chains, quality control, and manufacturing. He will receive 410,397 restricted share units as both incentive and retention tool.

The appointment comes on the heels of a severe shock. In late April, Marvell canceled all orders tied to Celestial AI, citing alleged breaches of confidentiality agreements. POET’s stock plunged more than 45 percent in a single session as investors feared the dispute might signal deeper trouble in the company’s AI-networking business. The shares have since recovered much of the lost ground, climbing 4.24 percent on the COO news to close at $14.49. Trading was unusually heavy — 85.26 million shares changed hands, with the stock oscillating between $12.97 and $15.18.

Should investors sell immediately? Or is it worth buying POET Technologies?

Now two critical events will test whether the recovery is sustainable. POET reports its first-quarter results on May 20. For the fourth quarter of 2025, revenue was roughly $340,000, while the net loss ballooned to $42.7 million, hammered by a $30.6 million non-cash charge from revaluing warrants. The full-year top line of $1.07 million was a dramatic percentage jump from prior periods but remains minuscule. The market will be looking well beyond the revenue line — the real focus is on the production timeline and any update on the Marvell fallout.

The second milestone comes on June 26, when shareholders vote on a proposed reincorporation of the company to the United States. The move carries tax implications; POET has acknowledged that for the tax year ending December 31, 2025, the stock is treated as a PFIC (passive foreign investment company), though based on current assumptions it does not expect that status to apply for 2026.

Kumar’s immediate task is to staff and scale the Malaysian operation. The company intends to begin manufacturing light sources in the second quarter of 2026, with 800G optical engines following in the third quarter. A prototype delivery under the Lessengers partnership is expected in the current quarter, and samples for LITEON are slated for the end of 2026, with scaled production penciled in for 2027.

For a company valued at $2 billion on negligible sales, the next few months will be make-or-break. The COO hire has bought time and confidence — but the production numbers will have to speak for themselves.

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