At the 27th China International Optoelectronic Exposition, 1.6T optical modules shifted from a prototype highlight last year to the default focus of the high-speed display area this year, with several leading manufacturers saying orders have already been booked into next year. Full-year demand forecasts have been raised sharply from about 10 million units at the start of the year to more than 25 million units, according to Jiemian News. The final FCC rules have also been published, and domestic optical module companies were not included on the restriction list, easing earlier worst-case assumptions.
CITIC Securities said optical modules remain the most fully reflected earnings segment in the current AI computing chain, and that the industry may continue to benefit from three drivers: computing expansion, faster transmission speeds and network architecture upgrades. The article also said the surge in demand is not isolated, as the move from prototype displays to bulk orders suggests the AI computing chain is entering a phase that places greater emphasis on delivery, orders and earnings realization.