By Jake Saltzman

There were plenty of hints that July and August would not bring much of a seasonal slowdown this year. A geopolitically charged, economically uncertain spring seemed unlikely to segue into the carefree summer for which many of us yearn. Still, the coveted summer break — which, truth be told, rarely offers enough respite from the grind — felt particularly bypassed this year.

The higher-than-usual volume of summer activity in the photonics industry has not been a net negative. Predictably, it looks to be a mixed bag, with silver linings even in some of the developments that at first seem, at face value, the most discouraging. TRUMPF, for example, reported that it ended its fiscal year down roughly $1 billion year-over-year in generated sales. But the company had forewarned of a downward turn after achieving momentum in 2024. And importantly, CEO Nicola Leibinger-Kammüller said that the laser maker believes it has hit its lowest point.

Elsewhere, Spain’s SPARC Foundry — which at one time planned to be operational in 2023 — received a $19.7 million investment to accelerate the launch of its photonic semiconductor manufacturing plant. The III-V foundry’s development will ultimately create 200 highly skilled jobs and more than 500 indirect jobs when it opens, with the new target set for 2027.

What stands out more than the volume of industry activity, though, is the nature of the news and the notability of the companies making headlines. In the seven-week period from June 30 to August 18, microscopy leaders ZEISS and Evident both made acquisitions (of Pi Imaging Technology and Pramana, respectively). During the same period, Ushio, Onto Innovation, STMicroelectronics, and Infineon each made deals to acquire individual business units from other companies.

On the flip side, Luceda Photonics, a pioneer in PIC test and design, and LED giant Lumileds were acquired — interestingly, both companies are based in the Benelux region and were acquired by Chinese parent companies. Bigger still, the companies spinning out and divesting business units include photonics industry titans Coherent, TRUMPF, and ams OSRAM, as well as Evident.

Mergers and acquisitions are not the only indicators of this busy season. Likewise, industry’s biggest and most established players are not the only ones making a splash. Companies such as Q.ANT, QuiX Quantum, and Arago (optical and photonic computing); Teramount (fiber-to-chip interconnects); Ephos (programmable PICs); Relativity Networks (hollow-core optical fiber); and xLight (EUV laser technology) collectively raised $260 million in financing this summer. Additionally, two companies — iThera Medical and Scantinel Photonics — filed for insolvency.

It is possible that the flurry of action that characterized Q3 may have been an anomaly. No matter the case, as the calendar moves into fall, we can expect this level of activity — and perhaps even more from within the industry in Q4.