Optical communication is a communication method based on optical signals as information carriers, which are developed on the basis of electrical communication. Compared with traditional electrical communication, optical communication has the advantages of huge transmission bandwidth, extremely low transmission loss, low cost and high fidelity.
With the dual pull of digital economy and artificial intelligence, new business and application requirements drive the growth of computing power traffic, leading a new wave of optical communication industry. At the same time, the state has increased support for the optical communication industry, and the proportion of enterprise investment in research and development has increased, which is undoubtedly conducive to the long-term development of the industry.
At the China International Information and Communications Technology Exhibition held recently, Huawei released the CloudEngine 16800-X series, the first 800GE data center core switch, officially opening its data center 800GE sequence. We believe that the release of Huawei's 800GE core switch products is expected to accelerate the demand for 800G supporting optical communication products in China.
The mainland optical communication industry is one of the few sectors that can directly participate in the construction of global computing power, and it is highly certain that the head manufacturers will win massive orders. In the past decade, the value of the global optical communication industry has shifted significantly to China, driving the rapid development of the domestic optical communication market. Continental optical component and module suppliers are gradually gaining share in the global market, and domestic suppliers currently dominate the global Ethernet optical module market.
As the demand for optical communication in high-speed data centers and other construction continues to increase, the global market share of mainland manufacturers is expected to further expand. Omida predicts that the size of China's optical communication market is expected to reach 175 billion yuan in 2025, corresponding to a CAGR of 12% from 2022 to 2025.
Optical modules are located in the middle of the industrial chain and have high profit margins in the entire optical communication industry chain. It undertakes signal conversion tasks and can realize optical signal generation, signal modulation, detection, optical path conversion, photoelectric conversion and other functions. According to Yole data, mainland optical module manufacturers have a global market share of more than 40%.
At present, in the 800G technology acceleration, overseas cloud manufacturers capital expenditure growth rate bottomed out, with reference to the first two cycles, domestic optical module leaders will have greater valuation flexibility, the second half of 2023-2024 two cycles will form an upward resonance, the agency also expects that the innovation drive brought by AI large models is stronger than the first two rounds, and the global competitive advantage and certainty of domestic leaders are stronger than the first two rounds, so the forecast price-earnings ratio of leading manufacturers is also expected to reach a range of 50-60 times.
Therefore, Xiaobian has also selected 5 computing power + optical communication + optical module companies for you, especially the last one, or become a demon
1. Taichenguang
The company's subsidiary, Rockchip, mainly produces planar optical waveguide wafers and chips, and its production conditions and production capacity are at a relatively high level among domestic counterparts; At present, the company's 400G optical module products have a small number of shipments, and 800G optical module products are being tested. The company sells optical module products to the domestic and foreign markets. The company's main business is the research and development, manufacturing and sales of various optical communication devices and their integrated functional modules and optical sensing products.
2. Yihua shares
The company's current research and development of 400G/600G high-speed connectors and 800G and above high-speed connectors under development are expected to be widely used in 5G+ and 6G equipment. Introduction to the official website of subsidiary Yigu Optoelectronics: Wuhan Yigu Optoelectronics Technology Co., Ltd. specializes in the research and development and production of optical communication optical module products, elite team, to create first-class supplier quality, covering the rate range of 1G~400Gbps.
3. Huagong Technology
The company's annual production capacity of optical modules exceeds 30 million, one of the world's largest optical module manufacturers, has successfully developed 800G SR8/2*FR4/DR8 (SiPh), 400G/200G/100G full series of products. 3. The subsidiary Huagong Zhengyuan is one of the few enterprises in China with an optical chip foundation, with a perfect process line and considerable reserve of technical personnel starting from MOCVD.
4. Tianfu Communication
The company has laser chip integrated high-speed light engine research and development project, the technology is suitable for the high-speed optical engine used in CPO scheme, providing a one-stop integrated solution for CPO technology, and the sample is currently sent and the project has entered the reliability verification stage.
Fifth, the most optimistic one at present, the advantages are as follows:
Reason 1: The company's subsidiaries have a layout in the field of quantum computing, and the company is also building a quantum industry chain to consolidate the foundation for the development of quantum chips, and it is also a core enterprise of optical modules.
Reason 2: Set market hotspots as one, CPO + optical communication + chip + artificial intelligence + cloud computing + 6G concept, also belongs to the State-owned Assets Supervision and Administration Commission (SASAC).
Reason 3: Currently in an uptrend, the main force continues to increase positions, small cap stocks, chip concentration, and the main force continues to increase positions. The stock price is also a breakthrough platform, the chips are concentrated, I am also optimistic that this vote is expected to start the main rising wave and become the next Golden Bridge Technology!