Industrial Securities Co.,Ltd. (601377) has released a research report indicating that optical module equipment is approaching a growth inflection point, fueled by accelerated downstream expansion and technological iteration.
The 800G and above rate scenarios face bottlenecks in laser chip speed and cost disadvantages, prompting accelerated penetration of new technologies such as silicon photonics, CPO, and LPO. The optical coupling process has the highest complexity, with testing spanning the entire R&D, mass production, and reliability verification phases, making optical coupling equipment the most valuable segment.
The optical module industry chain may be at a new inflection point for accelerating technology iteration, and the brokerage suggests focusing on breakthrough opportunities for domestic equipment manufacturers in customer acquisition and high-end technology upgrades.
Key Insights from the Report:
Optical modules are core components for converting optical and electrical signals in optical communications. The rapid development of AI computing power has triggered a surge in demand for optical modules. Currently, 800G modules have entered the stage of large-scale delivery, with 1.6T optical module products undergoing testing and verification by leading cloud providers, while the 3.2T technology path is in the pre-research phase.
As data centers and AI computing infrastructure scale up, traditional technologies mainly rely on multi-channel solutions to achieve speeds above 100G. However, at 800G and above rates, they face laser chip speed bottlenecks and cost disadvantages, accelerating the penetration of new technologies like silicon photonics, CPO, and LPO.
Optical module manufacturing involves several key processes, including die bonding, wire bonding, optical coupling, packaging, and aging testing, with continuously rising requirements for equipment precision and automation. Among these, the optical coupling process is the most complex, and testing runs throughout the entire R&D, mass production, and reliability verification process. Optical coupling equipment has the highest value.
According to the Sihan Industrial Research Institute, equipment investment for every 1 million 800G optical modules is approximately 500 million yuan, and for every 1 million 1.6T modules, it is about 600 million yuan. Coupling equipment accounts for roughly 40% of the value, die bonding 20%, instrument testing 15%, reliability and aging testing 12%, packaging 12%, and wire bonding about 1%.
AI is driving the acceleration of optical module technology iteration, increasing demand for testing instruments. New-generation high-rate optical modules such as 800G and 1.6T are gradually entering commercial use, directly driving the iterative upgrade of testing instruments toward higher rates and larger bandwidths, significantly boosting the global optical communication testing instrument market.
Leading global electronic measurement instrument maker Keysight Technologies reported Q1 2026 revenue/orders/net profit up 23.3%/30.2%/66.3% year-on-year, with orders growing sequentially since Q2 2025. The core driver is the boom in AI infrastructure construction, which has elevated optical module rates and increased testing complexity.
Risk Warnings: AI computing power investment may fall short of expectations; penetration progress of 800G/1.6T and CPO may be slower than anticipated; industry competition could intensify, leading to price decline risks.