Veeco Instruments Inc. (NASDAQ: VECO) announced it received orders totaling more than $250 million from multiple customers for its semiconductor processing equipment used in manufacturing indium phosphide lasers.

The orders include the company's Spector Ion Beam Deposition systems, Lumina Metal Organic Chemical Vapor Deposition systems, and WaferEtch Wet Processing systems. Deliveries are scheduled to begin in 2026 and accelerate in 2027, according to a company statement.

A substantial portion of the orders comes from manufacturers of 800G and 1.6T optical transceivers for hyperscale data centers. The Spector system deposits laser facet coatings required for high-power laser operation in these applications.

The equipment supports production of indium phosphide lasers used in silicon photonics applications. According to LightCounting, sales of optical interconnects are expected to grow as demand for 800G and 1.6T transceivers increases, driven by artificial intelligence infrastructure requirements.

"These orders reflect the strength of our long-standing customer partnerships, many spanning more than two decades, and our ability to support the evolving requirements of silicon photonics and the optical interconnect market," said Adrian Devasahayam, Senior Vice President of Veeco Instruments.

The company's Ion Beam Deposition technology produces optical films with controlled thickness and reflectivity for advanced indium phosphide lasers. The MOCVD platform supports high-volume indium phosphide epitaxy production, while the wet processing systems provide etching capabilities.

Veeco manufactures semiconductor process equipment including laser annealing, ion beam, chemical vapor deposition, wafer etch and clean, and lithography technologies for advanced semiconductor device fabrication.