Yuanjie Technology Warns Telecom and Data Center Demand Could Hit Results

Yuanjie Technology said its products are mainly used in optical communications, and demand for upstream optical chips is highly sensitive to downstream trends in the telecom and data center markets, according to 36Kr. The company warned that if downstream demand falls short of expectations—resulting in a sharp weakening or prolonged slump—its future operating performance could fluctuate. It added that if data center market growth or AI industry development underperforms expectations, if product iteration in the data center segment accelerates, or if competition intensifies, its sales revenue from the data center market could be significantly affected.