Kopin Bets on MicroLEDs for Defense Drones and AI Data Centers

Kopin is prioritizing MicroLED development for defense displays and AI data-center interconnects, supported by a $15 million U.S. award to build a Massachusetts production line with potential capacity of 160,000 wafers annually. The company expects at least $10 million in drone-goggle revenue next year, potentially reaching $50 million if additional competitors in a major U.S. drone program are selected. Kopin also sees a possible $350 million–$500 million Soldier Borne Mission Command opportunity. Through its Fabric.AI partnership, Kopin is developing a 1.6-terabit-per-second MicroLED optical transceiver aimed at replacing short-distance copper connections in AI data centers; commercialization could begin around mid-2028, pending an estimated 18-month design cycle.

Kopin Corp 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.

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.

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 ...