At present, the explosion of AI is accelerating, and the iteration speed of optical module technology is accelerating, which greatly shortens the upgrade cycle of optical modules.
The BOM (bill of materials) cost of high-speed optical modules is relatively high, and the value of optical chips accounts for the largest proportion. In particular, high-speed optical chips have a higher value, further pushing up the BOM cost.
Domestic optical chip manufacturers are facing an important window of globalization, with the demand for 400G DR4 and 800G DR8 expected to double, the demand for high-speed optical chips will be very tight.
The expansion of optical chips is not an easy task, requiring the core equipment MOCVD, and it takes at least one year from the arrival of the equipment to the completion of commissioning. Therefore, the agency expects that the supply of optical chips in the industry will be very tight by 2024. At the same time, with the emergence of the demand for 1.6T high-speed optical modules, the industry may generate demand for 200G EML. At present, domestic manufacturers are actively developing and deploying 100G/200G EML technology to accelerate the response to market demand.
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Application location of optical chips in optical communication systems:
Overview of the optical chip industry
Optical chips play a decisive role in information transmission speed and network reliability by realizing core optical communication functions such as optical and electrical mutual conversion, optical signal splitting, attenuation, and wave combination and wave splitting in optical modules.
Optical chips can be divided into two categories: active and passive.
Active optical chips occupy a dominant market share in the diversified application scenarios of optical modules, accounting for more than 90% of the volume.
Passive optical chips (such as PLG and APD) are mainly used in optical fiber and cable fields.
Taking 800G optical modules as an example, they are divided into two types: single-mode and multi-mode. The single-mode optical module uses 8 EML lasers, which can support the interconnection requirements of devices of 500 meters and above. Multi-mode optical modules are based on VCSEL chips, and although the value is slightly lower, they can quickly interconnect different racks within a short distance of less than 100 meters.
Optical chip industry chain combing
The optical chip industry chain is composed of upstream substrate/substrate suppliers and production equipment manufacturers, midstream optical chip manufacturers, and downstream optical module manufacturers.
As the underlying support material of the optical chip, the substrate provides physical support and also assumes the important function of thermal and electrical conductivity. The quality of the substrate material is directly related to the performance parameters and operational reliability of the optical chip, according to the prospectus of Yuanjie Technology, the substrate accounts for more than one-third of the raw material cost of the optical chip.
Diagram of optical chip industry chain:
Source: Xingxingcha
Indium phosphide and gallium arsenide meet the needs of high-frequency communication due to their high frequency, high and low temperature stability, low noise and strong radiation resistance.
Indium phosphide substrates are often used in the manufacture of FP, DFB, EML edge-emitting laser chips, as well as PIN and APD detector chips, and are widely used in scenarios that require medium and long-distance transmission, such as telecommunications and data centers.
GaAs substrates are mainly used in the production of VCSEL surface-emitting laser chips, which are widely used in data center short-distance transmission.
The global substrate market is highly concentrated. According to Yole's statistics, the top three manufacturers in the global indium phosphide substrate market - Sumitomo, Beijing Tongmei and Japan's JX together occupy more than 90% of the market share. In the gallium arsenide (GaAs) substrate market, Freiberger, Sumitomo and Beijing Tongmei together account for more than 60% of the market share.
Midstream optical chip manufacturers include Finisar, Lumentum, Broadcom, AOI, Accelink, Hisense Broadband, Huagong Technology, Xinyisheng, etc.
Broadcom EML and VCSEL Optical Chip Roadmap:
The localization process of low-speed optical chips has been basically completed, and the localization share of high-speed optical chips is expected to be further improved.
In the domestic optical chip market, the localization of 2.5G and 10G optical chips has been quite high, and the main manufacturers are Wuhan Minxin, Zhongke Guangxin, Guanglong Technology, Guanganlun, Shijia Photonics, Yuanjie Technology, CLP 13, Hisense Broadband, etc.
Global 2.5G and below DFB/FB optical chip market pattern:
Source: ICC
The leading domestic manufacturers of 10G and 25G optical chips include Yuanjie Technology, Yunling Optoelectronics and Wuhan Min Chip.
At present, there are still few domestic manufacturers that can provide high-speed (25G and above) laser chips with standard performance, stability and reliability.
Optical chip competitive landscape:
The competition among optical module manufacturers is also relatively fierce. In recent years, the strength of domestic optical module manufacturers has increased rapidly, and the market share has increased significantly. At present, the world's top ten optical module manufacturers, Chinese manufacturers account for half of the country. #光通信##光模块##光芯片##科技##人工智能##财经##国产替代##半导体#
According to LightCounting's statistics, in 2022, seven optical module manufacturers in mainland China will rank among the top 10 in the world, namely Zhongji InnoLight (ranked first, tied with Coherent), Huawei (fourth), Accelink (fifth), and Hisense Broadband, Xinyisheng, Source Optoelectronics, etc.
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