A robotic arm operates at an automated testing station of Jabil Circuit (Wuxi) Co., Ltd. at Wuxi Hi-Tech District Comprehensive Bonded Zone in Wuxi, east China's Jiangsu Province, on Sept. 15, 2025. [Photo/Xinhua]

The Wuxi Hi-Tech District Comprehensive Bonded Zone in east China's Jiangsu Province hosts a cluster of high-tech enterprises producing essential products and components that drive emerging industries such as AI, cloud computing, 5G and the Internet of Things (IoT).

Among them is Finisar Wuxi, a subsidiary of Coherent, a U.S. manufacturer of optical materials and semiconductors. Established in 2011 in the comprehensive bonded zone, Finisar Wuxi at present mainly manufactures optical transceivers and components for clients around the world.

At a press briefing held in the bonded zone this week, Finisar Wuxi revealed that it has expanded its production capacity at the Wuxi site, with cumulative investment at the site having reached approximately 460 million U.S. dollars.

Explaining the increased investment at the Wuxi production line, the company said it has capitalized on the explosive growth of OpenAI and cloud computing since the second half of 2023, developing cutting-edge optical modules and expanding production despite trade and tariff challenges.

In February 2024, the company launched a new project adding 8 million units of high-speed optical transceiver capacity annually. Additional expansions include a recent application for an 8-million-unit 800G optical module production line and plans to produce optical circuit switches (OCS) in Wuxi, according to the company.

Data provided by the firm showed that in the first eight months of this year, the company's industrial output value reached 8.63 billion yuan (about 1.2 billion U.S. dollars), up 29 percent year on year. Its total import and export value also grew more than 26 percent during the same period, demonstrating strong growth.

According to a company source, the decision to increase production investment is attributable to China's strengths in manufacturing, research and development, and the company also considers whether it can meet production targets with limited resources and within a set timeframe when making investment decisions.

The source also revealed that a key priority for Finisar Wuxi now is identifying new sites within the zone to support its expanded production.

With emerging industries such as AI experiencing rapid growth in major markets including China, the production capacity expansion in related industries has reflected China's enduring appeal for foreign investment, stemming from the country's industrial clustering effect and comprehensive supply chain advantages, enabling firms to maximize output within limited time and resources, according to the local commerce department officials.

Wang Licheng, head of the comprehensive bonded zone's management authority, highlighted the zone's clustering effect, driven by its strengths in integrated circuits, electronics and information, and optical communications. He said that despite a challenging trade environment, the zone posted 26 percent trade growth from January to August this year, led by advanced technology sectors such as integrated circuits and optoelectronics.

Located in the zone, Jabil Circuit (Wuxi) Co., Ltd., a subsidiary of U.S. manufacturing solutions provider Jabil, is providing design and manufacturing services across electronics, communications, IoT and new energy sectors.

Although trade friction and weaker electronics demand weighed on the company's exports last year, it remains optimistic about a growth recovery in the next few years, according to Zhao Songping, the operations manager.

He said that the company has been actively optimizing its development strategies, including strengthening partnerships with China's leading renewable energy and communications enterprises, accelerating smart manufacturing upgrades and diversifying market strategies.

"With strong technical expertise, a complete supply chain in China, and the Chinese government's supportive policies, we expect our business to stabilize by 2026 and return to growth in 2027," Zhao added.