Optical communication surged across the board! 6G breakthroughs combined with skyrocketing AI computing power, the industry enters an acceleration phase.

``` AI large model iteration and breakthroughs in next-generation communication technology are driving the global optical communication industry into an accelerated boom period. Accompanied by exponential growth in underlying computing power demand and the commercialization of Co-Packaged Optics (CPO) technology, the optical communication industry chain is ushering in a comprehensive resonance between fundamentals and the capital market. Driven by multiple favorable factors, on February 24, A-share optical communication concept stocks surged collectively. By the close of business, the overall optical communication sector had risen more than 3%. Farsight hit the daily limit within just one minute of opening, while more than a dozen stocks including HG Tech, YOFC, and Yunsong Technology also reached their daily limit or rose by more than 10%. The influx of market funds directly reflects the highly optimistic outlook and cutting-edge breakthroughs on the industrial side. On one hand, domestic scientific research teams have published their latest achievements in Nature, becoming the first internationally to realize cross-network seamless integration between optical fiber and wireless communication systems and break three world records for data transmission rates; on the other hand, the demand surge for computing infrastructure has driven a spike in orders at the manufacturing end, with core business orders of leading domestic enterprises already scheduled into the fourth quarter of 2026, and related high-speed optical module production lines operating at full capacity during the Spring Festival. Faced with the massive bandwidth demand brought by AI applications, traditional pluggable optical modules are gradually approaching their physical and power consumption limits. Several research institutions have pointed out that the continued increase in capital expenditures by North American cloud providers, coupled with CPO architecture evolution, is reshaping the technological foundation of compute interconnects, and core components as well as advanced packaging in the upstream and midstream of the optical communication industry chain will see a reevaluation of value and definite growth. AI Applications Ignite Computing Power Demand, Production Lines at Full Capacity Driven by the shift of global AI large models from a “parameter race” to a “productivity race”, demand for optical modules, the core components of computing hardware infrastructure, is surging. Tech giants such as ByteDance, Alibaba, and Google are intensively rolling out new large models, which has directly pushed up demand for Token and complex task processing capabilities. Huaxi Securities states that the surge in cloud provider capital expenditures is being directly transmitted across the entire industry chain. According to "China Optics Valley," during the Spring Festival, leading companies such as HG Tech and YOFC maintained production without shutdown. The head of HG Tech’s optical module business revealed that their company’s connection business orders are already booked into the fourth quarter of 2026, with AI high-speed optical module production lines running at full capacity 24 hours a day to ensure mass production and delivery of products such as 1.6T and 800G. Meanwhile, the production workshop of FiberHome in Wuhan and institutes like Jiufengshan Lab are also operating at maximum capacity, highlighting the industry’s strong expectations for an explosive rise in computing power demand. 6G Optoelectronic Integration Breaks Through Bottlenecks, Sets Three World Records While the industrial side accelerates mass production, Chinese research efforts have achieved landmark breakthroughs in basic communication architecture. According to Science and Technology Daily and the National Information Optoelectronics Innovation Center, Professor Wang Xingjun’s team at Peking University, together with Pengcheng Laboratory, ShanghaiTech University, and the National Information Optoelectronics Innovation Center, have proposed an integrated "fiber-wireless fusion communication" concept for the first time internationally. This achievement was published in Nature on January 19. Through its self-developed ultra-broadband optoelectronic integration chip and AI-enabled advanced equalization algorithm, this research has, for the first time at the physical layer, bridged the "bandwidth gap" between optical and wireless communications. The system has set three new world records: modulator bandwidth exceeding 250 GHz, single-fiber data transmission rate reaching 512 Gbps, and wireless transmission rate reaching 400 Gbps. Notably, all key technologies of this achievement are based on an entirely domestically produced integrated optics process platform, requiring no advanced traditional microelectronics processes and offering a high-potential, cost-effective solution for large-scale deployment of 6G base stations and wireless data centers. CPO Architecture Reshapes Interconnect Foundation, Industry Chain Initiates Value Migration Faced with the physical limits of future compute expansion, the optical communication industry is undergoing a foundational architecture transformation from traditional pluggable to Co-Packaged Optics (CPO). According to a CITIC Securities industry report, CPO, as the core technology for next-generation data center interconnects, achieves generational leaps in density, performance, and energy efficiency. Compared to pluggable modules, CPO solutions can reduce system-level power consumption by more than 50%, increase bandwidth density by an order of magnitude, and directly support speeds of 224G and above plus terabit-level switching architectures. Overseas technology giants are accelerating the commercialization of this technology. NVIDIA has clearly stated that CPO will be commercialized from 2025 to 2026, rapidly evolving from quasi-co-packaged to deep co-package forms to serve large-scale AI clusters; Broadcom is continuously advancing its CPO platform towards 102.4T switching bandwidth; Intel is implementing a four-phase strategy to transition to 3D photonic integration. CITIC Securities emphasizes that the real growth engine of CPO comes from the rigid demand for scale-up high-bandwidth interconnects. Taking NVIDIA’s Blackwell architecture as an example, the interconnect bandwidth of a single GPU has reached 7.2 Tbps. Under this trend, industry value is rapidly concentrating upstream in silicon photonic chips, high-performance lasers, and midstream advanced packaging segments. Risk Warning and Disclaimer The market carries risks; investment should be cautious. This article does not constitute personal investment advice and does not take into account any specific investment objectives, financial situation, or needs of individual users. Users should consider whether the opinions, viewpoints, or conclusions in this article fit their particular circumstances. Investments based on this information are at your own risk. ```