What is the expected sequential increase in telecom transport revenue in the second half of the calendar year 
 constraints in telecom transmission in Malaysia are improving, but we are not at 100% output yet. We won't be able to satisfy than more than $100 million of current backlog we have for these products until the second half of the calendar year.
Telecom transport revenue is expected to be up sequentially due to progress on relieving supply challenges and new product momentum in the market. Datacom chip revenue is expected to be up sequentially, once again due to continued strong cloud and 5G market demand, but is still gated by capacity in our wafer fab. We are optimistic about the long-term outlook for our telecom and datacom product lines due to expected long-term demand trends, our technology and product leadership position and improving industry dynamics. As I highlighted in my initial remarks, the world's experience with COVID-19 is changing how we do things in all aspects of work and life.
This change directly drives the need for our telecom and datacom products. The market is designing networks around our leading products to enable scaling to higher capacity. This is very favorable to us. Our indium phosphide coherent components and modules enable the higher speed and density needed for higher network bandwidth.
Our high-port count and MxN ROADM technology enables networks to scale capacity much more efficiently. And our higher speed, lower power consumption datacom chips are critically important to drive network capacity and efficiencies in 5G and next-generation data center networks. Turning to industrial and consumer. Our industrial and consumer product lines were down 24% sequentially as expected due to seasonal factors, but up 40% relative to the prior year.
Year-on-year growth was driven by customers incorporating 3D sensing in a higher percentage of their product offerings compared to last year and increased consumer demand for 3D sensing enabled products. We steeply ramped volume production of lasers for world-facing cameras or LiDAR for consumer applications in the third quarter. We expect to continue to ramp volumes of such lasers throughout the calendar year. Looking to our fourth quarter.
Our guidance contemplates 3D sensing declining significantly by more than 40% due to expectations around consumer demand, the potential for smartphone supply chain challenges impacting demand for our products and potential risk around the timing of new customer programs. We have a range of new products we are readying to ramp in the second half of the calendar year including additional world-facing designs that we expect will increase the penetration of world-facing 3D sensing or LiDAR-enabled cameras. It is too early to quantify with confidence any impact to consumer volumes or the timing of new programs due to COVID-19, but we are very closely monitoring the situation. We believe the 3D sensing market will continue to grow over the long term.
Mobile device manufacturers continue to make progress on their plans to incorporate front-facing and world-facing capabilities into a wider range of models. We are engaged with a broad range of customers focused on the consumer, industrial and automotive end markets looking to add 3D sensing or LIDAR capabilities to enable their applications. Now on to lasers. Third-quarter lasers revenue decreased to $43.5 million driven primarily by decline in fiber laser sales.
We expect over the next several quarters that our fiber lasers business will soften further as it is tied to growth in global manufacturing. Our solid-state laser revenue expanded nicely quarter on quarter and attained levels not seen in nearly two years. This was due to strength in certain semiconductor manufacturing end markets including 5G antenna fabrication. We expect these trends to continue into the fourth quarter with fiber laser declines being larger than solid-state growth resulting in laser revenue declining sequentially by approximately 20%.
Throughout my remarks, I've tried to give you much more detail than usual about the status of our market demand for our products, our operations and our ability to supp
 constraints in telecom transmission in Malaysia are improving, but we are not at 100% output yet. We won't be able to satisfy than more than $100 million of current backlog we have for these products until the second half of the calendar year.
Telecom transport revenue is expected to be up sequentially due to progress on relieving supply challenges and new product momentum in the market. Datacom chip revenue is expected to be up sequentially, once again due to continued strong cloud and 5G market demand, but is still gated by capacity in our wafer fab. We are optimistic about the long-term outlook for our telecom and datacom product lines due to expected long-term demand trends, our technology and product leadership position and improving industry dynamics. As I highlighted in my initial remarks, the world's experience with COVID-19 is changing how we do things in all aspects of work and life.
This change directly drives the need for our telecom and datacom products. The market is designing networks around our leading products to enable scaling to higher capacity. This is very favorable to us. Our indium phosphide coherent components and modules enable the higher speed and density needed for higher network bandwidth.
Our high-port count and MxN ROADM technology enables networks to scale capacity much more efficiently. And our higher speed, lower power consumption datacom chips are critically important to drive network capacity and efficiencies in 5G and next-generation data center networks. Turning to industrial and consumer. Our industrial and consumer product lines were down 24% sequentially as expected due to seasonal factors, but up 40% relative to the prior year.
Year-on-year growth was driven by customers incorporating 3D sensing in a higher percentage of their product offerings compared to last year and increased consumer demand for 3D sensing enabled products. We steeply ramped volume production of lasers for world-facing cameras or LiDAR for consumer applications in the third quarter. We expect to continue to ramp volumes of such lasers throughout the calendar year. Looking to our fourth quarter.
 Our guidance contemplates 3D sensing declining significantly by more than 40% due to expectations around consumer demand, the potential for smartphone supply chain challenges impacting demand for our products and potential risk around the timing of new customer programs. We have a range of new products we are readying to ramp in the second half of the calendar year including additional world-facing designs that we expect will increase the penetration of world-facing 3D sensing or LiDAR-enabled cameras. It is too early to quantify with confidence any impact to consumer volumes or the timing of new programs due to COVID-19, but we are very closely monitoring the situation. We believe the 3D sensing market will continue to grow over the long term.
Mobile device manufacturers continue to make progress on their plans to incorporate front-facing and world-facing capabilities into a wider range of models. We are engaged with a broad range of customers focused on the consumer, industrial and automotive end markets looking to add 3D sensing or LIDAR capabilities to enable their applications. Now on to lasers. Third-quarter lasers revenue decreased to $43.5 million driven primarily by decline in fiber laser sales.
We expect over the next several quarters that our fiber lasers business will soften further as it is tied to growth in global manufacturing. Our solid-state laser revenue expanded nicely quarter on quarter and attained levels not seen in nearly two years. This was due to strength in certain semiconductor manufacturing end markets including 5G antenna fabrication. We expect these trends to continue into the fourth quarter with fiber laser declines being larger than solid-state growth resulting in laser revenue declining sequentially by approximately 20%.
Throughout my remarks, I've tried to give you much more detail than usual about the status of our market demand for our products, our operations and our ability to supp