System Supports Next-Generation Optical Transceivers and AI-Driven Data Center Infrastructure

Plainview, N.Y., July 21, 2026 – Veeco Instruments Inc. (Nasdaq: VECO) today announced that Innolume, a leading vertically integrated developer and manufacturer of quantum dot (QD) lasers, has purchased a GEN2000™ Molecular Beam Epitaxy (MBE) system to expand production of gallium arsenide (GaAs)-based quantum dot lasers for next-generation optical transceivers and silicon photonics applications. The investment supports the increasing demand for optical connectivity solutions for hyperscale AI infrastructure and cloud data centers.

Quantum dot lasers are emerging as a critical technology for optical interconnects used in AI infrastructure and cloud computing. Their superior temperature stability, low power consumption, and high reliability make them particularly well-suited for future optical transceiver architectures, including co-packaged optics (CPO), where conventional laser technologies face increasing thermal and power challenges. The investment reflects Innolume’s continued expansion of manufacturing capacity to support growing customer demand for quantum dot laser solutions.

According to LightCounting, a market research firm, CPO deployments are accelerating demand for lasers. Sales of optical transceivers using these lasers will reach almost $80 billion by 2031, driven by increasing bandwidth requirements and a growing focus on energy-efficient optical connectivity. QD lasers offer narrow spectral linewidth, low threshold current, and superior temperature stability, making them an ideal emitter technology for CPO.

“Quantum dot lasers are playing an increasingly important role in next-generation silicon photonics and AI-driven optical interconnects," said Sven Rüger, CEO of Innolume. "The GEN2000 MBE system provides the production capacity, material quality, and manufacturing efficiency needed to support our technology roadmap and future manufacturing requirements.”

“Innolume’s investment in the GEN2000 MBE system underscores the increasing importance of MBE-grown QD lasers,” said Matthew Marek, VP and General Manager for Veeco’s MBE product line. “We are proud to be selected as Innolume’s production partner and look forward to supporting their continued growth as demand for advanced optical connectivity solutions accelerates.”

Veeco’s production GEN2000 MBE system is recognized for its industry-leading throughput and low cost-of-ownership. In addition to the GEN2000 MBE system installation, Innolume is implementing Veeco’s Spector® Ion Beam Deposition system to further expand its in-house coating capabilities for ultra-low-loss anti-reflective and highly reflective laser facet coatings, strengthening its manufacturing capabilities with Veeco process technology solutions spanning multiple critical manufacturing steps. Innolume's adoption of both Veeco MBE and ion beam deposition platforms highlights Veeco's unique ability to deliver complementary process technologies that enable high-volume photonic device manufacturing.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2025, and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.