「Stock God」 Serenity: Bullish on Semiconductor Foundry XFAB, European CPO Strategy May Be Market Undervalued

BlockBeats News, June 6th - The "Stock God" Serenity stated in a post that they are optimistic about the semiconductor foundry XFAB (PhotonixFAB), believing that the company has the potential to become an early-stage TSEM (Tower Semiconductor). With a current market capitalization of approximately $1.4 billion, this value does not yet reflect its long-term potential in the field of Co-Packaged Optics (CPO).

Serenity mentioned that XFAB is positioning itself for a significant commercial inflection point in CPO in the second half of 2027 through technologies such as Mask Transfer Printing (MTP) and Thin Film Lithium Niobate (TFLN). According to ASX documents, PhotonixFAB is identified as one of the firms focusing on CPO.

They noted that NVIDIA is evaluating XFAB's transceiver and switch solutions for mass production feasibility, with Nokia handling related specification development and assembly. If the European supply chain, including Smartphotonics, operates smoothly, XFAB could benefit from NVIDIA's long-term orders similar to how Tower Semiconductor has expanded its capacity.

Serenity believes that XFAB's current valuation is below its reset cost, and in addition to this, the company has opportunities for growth in Silicon Carbide (SiC) and Gallium Nitride (GaN) power semiconductor businesses. Furthermore, XFAB may also benefit from future chip subsidy policies in Europe and the United States.

They pointed out that as Europe pushes for establishing an independent photonics industry chain and NVIDIA seeks to strengthen its relationship with European regulatory bodies, even if large-scale orders are not secured in the future, XFAB has a higher probability of receiving support for specific projects. However, since the market tends to wait for clear catalysts such as "NVIDIA signing multi-billion dollar contracts," by that time, the company's valuation may already be significantly higher than its current level. Hence, the market has hardly attributed the proper value to its European CPO exposure.