Taiwan laptop-camera maker Ability Opto-Electronics is betting on optical chip parts to turn its business around, a hopeful sign for the company but not a quick one.

• Its V-groove and MT ferrule parts for co-packaged optics are with customers for approval, with mass production planned for next year.
• Heavy spending this year will hold profits flat; the company hopes to just break even next year.
• Optical communications could bring in 30% of revenue next year, with small shipments starting early in the second quarter.
• Nvidia began mass production of co-packaged optics in August, but low yields and hand-done assembly steps still hold the supply chain back.
• Spending drops from about NT$2 billion this year to a few hundred million next year, easing the pressure.

Outlook: New non-laptop products start shipping in the fourth quarter, and the optical push only pays off if customer approvals land on time.