Laser components and electro-optical systems maker Alfalight Inc. has sold its commercial laser diode product line and semiconductor fab assets to Compound Photonics, a provider of high-definition laser projection light engines for mobile devices, the companies announced Thursday. Alfalight will retain its produce line for defense customers, and the two companies also will cooperate on component-level strategy. Alfalight President and CEO Mohan Warrior said the transaction will enable his company to increase its investment in the development and production of laser-based products — including shortwave infrared, near-infrared and visible lasers &Mdash; for defense, aerospace and other high-performance applications. "With a fabless model, Alfalight can better expand our engineering capabilities and align our system manufacturing infrastructure for the challenging requirements of this market," he added. Phoenix-based Compound Photonics develops complete high-definition and ultra-HD 4K projection light engines for smartphones, tablets and other consumer electronic devices as an integrated system, including display, laser illumination sources, mirrors, optics, drive electronics, software and housing. Adding Alfalight's efficient, wavelength-stabilized laser diode components to its portfolio enables tiny, bright and efficient projection light engines and simplifies the supply chain for mobile device manufacturers, the company said. It also strengthens its position as a vertically integrated projection line engine manufacturer. Keeping costs low and simplifying the supply chain are necessary so manufacturing can scale to the huge volumes required for rapidly growing global mobile device markets. The companies signed a strategic supply agreement that ensures Alfalight a continued source of high-performance laser components from Compound Photonics. The products that Alfalight will continue to supply to defense customers include laser-based visible and infrared illumination, laser-initiated ordnance, targeting, tracking and locating, and eye-safe nonlethal ocular disruptors. Alfalight also remains an ITAR (International Traffic in Arms Regulations)-registered company. Financial terms of the agreement were not disclosed; both companies remain independent and privately held. For more information, visit: www.alfalight.com or www.compoundphotonics.com