Erfa Optoelectronics closes B+ round exceeding ¥100M

What's the deal? Erfa Optoelectronics, a Chinese maker of high-end optical communication modules and active optical cables, has closed a B+ round of funding exceeding ¥100M (roughly $14M). China Merchants Zhiyuan led the round as a new investor. Combined with earlier investments from Anxin Fund and Toukong Donghai that landed in 2025, the round marks one of the largest fundraises in China's consumer optical communications sector heading into 2026.

Why now? Demand for compact, low-power, high-speed optical modules is surging as hyperscale data centres, HD video infrastructure, long-haul transmission networks, and wireless systems all expand. Erfa's products target exactly that intersection — cost-effective optical connectivity for bandwidth-hungry applications.

The signal: China's optical communications sector continues to draw dedicated investment fund capital, with Anxin Fund — an investment fund tracked on Dealroom — among the backers reinforcing domestic supply-chain bets. As global AI infrastructure spending intensifies competition for high-speed interconnects, mid-stage component makers like Erfa are capturing funding that was once concentrated at the later stages, suggesting investors see a widening opportunity in the upstream optical layer.

Image: Asurnipal, CC BY-SA 4.0, via Wikimedia Commons.