IPG Photonics - Corporate History

Corporate History

IPG was founded in 1990 by physicist Valentin P. Gapontsev, a pioneer in the field of fiber lasers. Dr. Gapontsev has received numerous awards, including an Engineering Excellence Award from the Optical Society of America in 1999, and an Ernst & Young New England Entrepreneur of the Year Award in 2006. In 2009, the Laser Institute of America recognized him with the Arthur L. Schawlow Award as "the father of the fiber-laser industry as it is known today," and in 2010, he was awarded the Russian Federation National Award in Science and Technology, "for his set of innovative designs and his creation of high-quality production of fibre lasers and fibre optic backbone and local connection systems."

In the beginning, IPG made and sold customized glass and crystal lasers, wireless temperature meters for hyperthermy and laser components. In 1992, the company began focusing exclusively on the development of high-power fiber lasers and amplifiers.

The firm received its first major contract from telecommunications carrier Italtel. IPG then won a second major contract from DaimlerBenz Aerospace (Dornier Branch). Following that second contract, IPG opened a facility in Germany in 1994. Through the late 1990s, IPG’s work garnered the company a reputation as a highly regarded engineering organization and a pioneer in advanced high-power fiber lasers and amplifiers.

IPG also became a leader in producing components for the telecom industry, opening manufacturing facilities in both Italy and the U.S. in 1998.

In 2000, IPG made a strategic decision to invest in new high-capacity production facilities to manufacture its own diode pumps, a major component of its fiber lasers and amplifiers. This investment allowed IPG to cut its dependence on outside suppliers and produce the essential components for its systems for up to 90% less than what it paid outside suppliers. As a result, IPG is able to produce most critical components for its lasers and amplifiers, meaning that IPG can both sell high quality lasers and amplifiers at lower prices than competitors and act as supplier to these same companies.

By dint of its vertical integration and its proprietary technology, IPG effectively scaled the output powers of its fiber lasers to levels that exceed conventional solid-state and gas lasers, permitting lasers to be used in new applications and supplanting conventional lasers in many applications.

The company went public at the end of 2006 and is listed on the NASDAQ Global Select Market under the ticker IPGP.