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A breakdown of the photonics value chain and key business: Layer 1 - Materials & wafers: Raw material gets converted into ultra clean surfaces for light based devices. It's like the canvas before anyone paints. Key businesses: • $GLW • $AXTI • $IQE • $AIXA • $AMS Layer 2 - Core photonic devices: where the physics happens. Layer 2 converts electricity into light and light back into electrical signals. Key businesses: • $IPGP • $COHR • $LITE • $LASR • $SIVE Layer 3 - Components & modules: this layer takes the photonic devices from Layer 2 and packages them into something a customer can actually plug in. Key businesses: • $AAOI • $MTSI • $FN • $VIAV • $LPTH Layer 4 - Systems & equipment: builds the platforms for production, sensing, imaging, inspection and data movement Key businesses: • $ASML • $BESI • $ASM • $LPKF • $MKS Layer 5 - Test, metrology & yield: Every device and module that moves through the four layers above eventually arrives here. Layer 5 decides whether it meets specification and is ready for mass production. Key businesses: • $CAMT • $FORM • $AEHR • $ONTO • $VIAV If you found this helpful, the linked deep dive below goes into much more detail, also ranking all these businesses on quality and constraint severity.

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