Kopin NASDAQ: KOPN is expanding its focus on MicroLED displays for defense applications and AI data-center interconnects, Chief Executive Officer Michael Murray said during a discussion hosted by Canaccord Genuity Senior Aerospace and Defense Technology Analyst Austin Moeller.
Murray said the 40-year-old company, founded by Dr. Fan from MIT Lincoln Laboratory, now develops four display types in the U.S.: LCD, OLED, ferroelectric liquid crystal on silicon, and MicroLED. He described MicroLED as the company’s principal development franchise. Kopin also developed what Murray called a bidirectional “NeuralDisplay,” which led to its Neural I/O chip collaboration with Fabric.AI.
MicroLED Focus and Manufacturing Expansion
Murray contrasted MicroLED technology with OLED displays, saying OLED can reach about 20,000 nits of brightness but can degrade as more current is pushed through its organic materials. Kopin’s MicroLED demonstrated at its technology day was capable of 1.8 million nits, according to Murray.
He said Kopin received a $15 million Industrial Base Analysis and Sustainment Act award to establish a MicroLED production line in Westborough, Massachusetts. The company received a custom bonder during the prior quarter and is assembling the line, which Murray said could ultimately produce about 160,000 wafers annually. Depending on chip sizes, that could translate to several million units per year.
The expanded production capability is intended to support Soldier Borne Mission Command work as well as data-center optical-interconnect products being developed with Fabric.AI. Murray said higher wafer throughput could lower manufacturing costs across both programs by improving factory utilization.
“The more wafer we push, the lower the cost of the Fabric.AI chip, the lower the cost of our color MicroLED for Soldier Borne Mission Command,” Murray said. He estimated the company could hold a 25% to 35% cost-structure advantage over competitors, although he did not provide supporting financial details.
Drone Headsets and Defense Programs
Kopin is supplying first-person-viewer headset products for drone programs, Murray said. He said the U.S. government intends to build about 3 million one-way drones in the following year and that Kopin currently supplies headsets to one of the top three companies in the Drone Dominance Program’s competition. That company has supplied 6,000 drones to the Pentagon, according to Murray.
Murray said Kopin is involved with five of the top 10 competitors in the current program. He estimated that drones measuring one foot or less require roughly one headset per 10 drones, while larger drones have a ratio closer to one headset per 20 drones.
The CEO said Kopin is targeting at least $10 million in revenue from first-person-viewer drone goggles in the following year. That figure could rise to $50 million if more program competitors using Kopin headsets are selected, he said, while noting that the company does not know which entrants will win.
Beyond drone applications, Murray said Kopin is pursuing programs involving aircraft heads-up displays, thermal weapon sights and Soldier Borne Mission Command. He characterized the Soldier Borne Mission Command opportunity as a potential $350 million to $500 million contract for Kopin and said the company expects to have greater clarity in November.
Fabric.AI Partnership Targets Data Centers
Kopin and Fabric.AI are developing a MicroLED-based optical transceiver intended to transfer data at 1.6 terabits per second. Murray said Fabric.AI has funded Kopin’s work on the chip and has exclusive rights for the hyperscaler portion of the market, while Kopin plans to pursue defense and government users.
Murray said the technology is designed for short-distance connections between chips and boards, where MicroLEDs could offer an alternative to copper connections and fiber-optic lasers. He said copper connections face increasing performance, density and cooling challenges as AI systems seek higher transfer rates.
According to Murray, Kopin’s internal analysis estimated that switching to MicroLED-based interconnects could save 27 kilowatts per rack per month and about $25,000 in cooling costs per rack per month. Those figures were presented as company estimates rather than independently verified results.
The company plans to demonstrate the technology at CES in January, Murray said. He estimated that commercialization could require an approximately 18-month design cycle after demonstrations, suggesting a potential timeframe around mid-2028. He also said Kopin believes it has an 18- to 24-month technological lead over California-based Mojo Vision in MicroLEDs.
During the question-and-answer session, Murray said the current development focus is on distances of roughly 300 millimeters, or about one foot, for optical transmission. He said longer distances may require an intermediary such as fiber, glass waveguides or other optical components.
U.S. Sourcing Emphasis
Murray said government and defense customers are placing increased importance on domestic production of chips, displays and interconnect technology due to supply-chain and cybersecurity concerns. He argued that components sourced from China could pose security risks, particularly in AI infrastructure and military systems.
He also cited what he described as recent U.S. government restrictions affecting China-sourced data-center interconnects. Kopin’s Westborough production line is intended to provide a U.S.-based supply source for both defense displays and the Fabric.AI chip program, Murray said.
About Kopin (NASDAQ:KOPN)
Kopin Corporation NASDAQ: KOPN is a technology company specializing in the development and manufacture of high-resolution microdisplays and optical components for wearable electronics. Headquartered in Westborough, Massachusetts, Kopin designs both liquid crystal on silicon (LCOS) and organic light-emitting diode (OLED) microdisplays, as well as complete display engines and optical modules tailored for use in augmented reality (AR), virtual reality (VR), industrial, medical, and defense applications.
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