As AI and wearables become increasingly integrated, coupled with an aggressive push from market leaders, global market intelligence firm TrendForce projects that global AR glasses shipments will hit a milestone of millions of units in 2026. As high-cost components at the system level, optical waveguides play a pivotal role in driving large-scale production and mass adoption across the AR glasses industry, with cost reductions and performance upgrades serving as primary growth engines.

Li Xiayun, Chairman of the Board at Zhejiang Crystal-Optech

As a global expert in the information interaction sector, Zhejiang Crystal-Optech delivers end-to-end services spanning core components, modules, and solutions. The company’s product portfolio strategically targets three core sectors: consumer electronics and automotive optoelectronics, AR optics, and AI optics. To drive its next wave of growth, the company has leveraged “consumer electronics and automotive optics” as its first growth curve, while charting “AR optics” as its second growth curve and accelerating its strategic positioning in “AI optics (including optical communications)” as its third growth curve. Crystal-Optech remains steadfast in its strategic principles of being “globalized, technology-driven, and openly collaborative,” building on its core technologies as the foundation to expand into consumer application scenarios and unlock a pipeline of business breakthroughs, ultimately positioning itself as a global leader in full-stack optical solutions.

Centered on GWG, Crystal-Optech has made multi-faceted arrangements for key components of AR optics.
Built on its deep expertise in ultra-precision coating, ultra-precision cold working, and automation integration, Crystal-Optech has developed a comprehensive portfolio of critical components in AR optics, while also fortifying its technological moat around geometric waveguide (GWG) technology.

Geometric waveguides (GWG) (left) and RGB prisms (right) developed by Crystal-Optech

GWG technology boasts formidable technical barriers and a comprehensive suite of leading-edge performance capabilities, including an ultra-wide field-of-view (FOV), superior optical imaging quality, and backward compatibility with small-to-medium FOV models. Crystal-Optech points to its long-term commitment to overcoming the challenges associated with GWG mass production, while demonstrating its long-standing industry leadership in relevant technology development alongside the sustained expansion of its production lines. Currently, the company has forged a deep strategic partnership with an industry-leading customer in the North American market.

Regarding its optical waveguide roadmap, Crystal-Optech has adopted a multi-track strategy to tailor to market demand for product differentiation. Volume holographic grating (VHG) technology features a streamlined manufacturing process and outstanding cost performance, targeting the budget-friendly mass consumer market. In terms of surface relief grating (SRG) technology, Crystal-Optech has pivoted toward glass wafers and SiC wafers, while accelerating the transition toward 12-inch wafer processes and aggressively expanding close collaborations with industry-leading SRG manufacturers.

As single-panel full-color Micro-LED technology has yet to reach maturity, RGB prisms have emerged as the most viable pathway for full-color AR glasses. Known for significant technical barriers, RGB prisms also represent a key strategic priority for Crystal-Optech.

Moreover, Crystal-Optech has simultaneously established a presence in eye-tracking modules and metalenses, among other products, further enhancing its comprehensive supply capabilities within the AR glasses sector.

VHG Production Line Enters Mass Production and Begins Shipment; Single-Panel Multi-Color Optical Engine Module to Debut at CIOE
According to Crystal-Optech, its VHG production line in Dongguan, China, has achieved mass production and begun shipment. In terms of capacity, having overcome key technological challenges, the company is now equipped with the agility and flexibility required to scale up production to meet diverse customer demands moving forward.

VHG technology offers exceptional cost effectiveness, making it an ideal solution for AR glasses with a compact field of view (FOV). It can also minimize front-side waveguide glow to below 2%, highlighting its significant advantage over SRG technology.

Notably, Crystal-Optech's VHG portfolio is currently concentrated in one-dimensional (1D) pupil expansion products, with two-dimensional (2D) pupil expansion technology slated for launch in the second half of the year. This advancement will further reduce grating footprints and enhance compatibility with various frame designs. The company also plans to debut a multi-color display solution integrating VHG waveguides and optical engines at CIOE 2026. Featuring Micro LED display technology and dual-color (red and green) capabilities, this module unlocks a broader color range, delivering a superior visual experience for users compared to conventional monochrome green displays.

Intensifying Strategic Planning for AI Optics (Optical Communications) and Building a "3+2" Optics Portfolio
TrendForce notes that the explosive demand for AI computing has accelerated the transition toward 1.6T optical modules and NPO/CPO architectures in optical communications. Crystal-Optech has leveraged its technological foundation in consumer electronics, including precision coating, ultra-precision cold working, and semiconductor micro/nano optics, to secure its entry into the optical communications market. As an industry forerunner, the company has also established a "3+2" product portfolio, where "3 types of foundational components" (WDM filters, silicon lenses, and micro-prisms) serve as general-purpose products for rapid penetration into mainstream applications, and "2 types of core products" (TGV glass substrates and planar lightwave circuits) are designed to establish a future-proof moat of differentiated competitiveness.

Crystal-Optech emphasizes that its competitive edge in this sector hinges on deep synergy among its foundational technologies. Backed by a fleet of over 500 coating machines, deep expertise in semiconductor micro/nano technologies, and over two decades of automated production experience in high-volume consumer electronics, Crystal-Optech is fully equipped with the high-precision, high-efficiency mass delivery capabilities necessary to meet the stringent standards of reliability in optical communications. Regarding its customer strategy, the company maintains its long-standing focus on top-tier customers to position its core products on a strong technological footing, laying a solid foundation for mid-to-long-term growth.

Outlook
Looking ahead, Crystal-Optech has positioned its formidable GWG business as the powerhouse for future deployment, while solidifying its competitive edge in the AR optics sector by persistently addressing mass production challenges, thereby enabling the broader AR glasses industry to achieve transformative breakthroughs. At the same time, the company has forged ahead with its VHG product line to align with customer requirements of product differentiation. In the SRG sector, the company focuses on the research, development, and supply of upstream core materials (glass wafers and SiC wafers) to enable deep synergy of key AR optical technologies. Meanwhile, Crystal-Optech is accelerating the commercialization of its optical communications offerings through the dual-pathway deployment of AR optics and AI optics, paving the way for its forward-looking competitiveness in the optics domain.

TrendForce 2025 Near-Eye Display Market Trend and Technology Analysis
Publication Date : 29 August 2025
Language : Traditional Chinese / English
Format : PDF
Page Number: 168