Optical Communication Special Topic

At present, both North America’s CPO and OCS are moving into mass production, and the industry is set to enter a breakout period. [Taoguba]
Based on this, optical communications still has a lot of room for development, bringing huge investment opportunities.
We will track this and list companies in each sub-segment.

    Optical chip targets: Jedge Xuchuang (silicon photonic chips), Xin Yisheng (silicon photonic chips), Yuanjie Technology (EML+CW), Hubei Huagong Technology (EML+silicon photonic chips+CW+TFLN); Benefiting targets: Changguang Huaxin (EML+CW), FiberHome Technologies (EML+CW+TFLN), Yongding Co., Ltd. (EML+CW), Shijia Photon (CW+AWG), Dongshan Precision (EML+silicon photonic chips+CW), Luxtera Technology (TFLN), Amphen Technology (silicon optical heterogenous integration TFLN), Lumentum, Coherent, Broadcom, Marvell, Sumitomo Electric, Tower Semiconductor  

   Optical materials targets: Tongtongs Co., Ltd. (TFLN substrates), Fujing Technology (TFLN crystals), CICT Electronic (TFLN substrates), Yunnan Germanium Industry, AXT, IQE, Coherent  

  “The perfect match” combination of CPO+OCS, with network power consumption about 2.6x lower than traditional pluggable solutions—CPO (co-packaged optics) handles short-reach, high-bandwidth electro-optic integration inside the rack and at the Leaf layer, like a “local delivery person” dealing with sudden, high-frequency traffic; while OCS handles long-reach, high-volume optical links connecting the Spine/backbone layer and across data centers, like a “cross-city highway dispatch center” that carries steady, predictable backbone traffic. Together with optical transceivers at the edge, the two form the optical interconnect foundation for the next generation of AI data centers.  
  Next, let’s see which players have OCS.  
   Upstream: MEMS and precision optical components; Midstream: OCS-optimized high-speed optical modules and devices; Downstream: OCS complete systems and solution providers.  

Siver Semiconductor (300456.SZ): the “upstream monopoly” of localizing MEMS chips
Tengjing Technology (688195.SH): the “precision optics leader” tied to Google’s core supply chain
Tengjing Technology is, among A-share OCS concept stocks, the only company that has entered Google’s OCS first-tier supply chain, and it is also the core supplier of OCS optical components. Its industry position is like that of a core materials provider in the advanced packaging track that is bound to leading wafer fabs. With strong customer and technology barriers, it has extremely high certainty in performance realization.

The company’s core products are precision optical components that are indispensable inside OCS switches, including lenses, prisms, filter plates, yttrium vanadate (YVO₄) single crystals, circulators, and so on. Among them, the circulator made from a yttrium vanadate single crystal can enable bidirectional communication over a single fiber. It directly halves the number of OCS system ports and optical fibers, making it a key component for cost reduction in large-scale deployments. As a first-tier supplier to Google OCS, the company supplies key optical components directly to Google OCS switches. At the same time, it also supplies core components such as lenses, optical filters, prisms, and wavelength-division multiplexers for leading optical module/OCS-related customers at home and abroad, including Jedge Xuchuang. It is deeply tied to the two major AI hardware optical communication core tracks of OCS and high-speed optical modules.
Luxtera Technology (300620.SZ): a “full-industry-chain deployer” from components to complete systems
Luxtera Technology is the only company in China’s A-share OCS industry chain that covers both upstream core optical devices and downstream OCS complete systems at the same time. With the dual setup of “optical devices + complete systems,” and by stacking multiple growth curves such as CPO and thin-film lithium niobate, it has become the most comprehensive target in terms of business layout in the OCS sector—like a platform-type enterprise in the advanced packaging track that covers both packaging materials and packaging contract manufacturing.

Its subsidiary Jiahua Weijie mainly produces data-center core fiber interconnect products such as FAU, MPO, and AWG, and holds a relatively high market share in the field of data-center fiber array connector products. In its OCS deployment, the company, through the acquisition of Wuhan JEP, completed a breakthrough leap from “optical devices” to “OCS complete systems,” and has end-to-end R&D and mass-production capabilities for optical switch complete systems, high-speed optical modules, and wavelength-division multiplexing modules.

Dekolier (688205.SH): a dual-engine drive of silicon photonic OCS complete systems and DCI systems
Dekolier is one of the few companies in the A-share OCS industry chain that has OCS complete-system R&D and mass-production capabilities. It is also a leading provider of domestic silicon photonic waveguide OCS solutions. With the expected benefits from its cooperation with Google and the synergistic advantages of DCI systems, it has become the OCS track target with the greatest performance elasticity. The market’s key focus lies in the landing of orders from major customers and breakthroughs in the technical roadmap.

In the industry, FiberHome Technologies’ OCS strength is strong—its capability covers from upstream to complete systems because it does it all in-house; it is a national team, focusing on the independent industrial chain.

Robotech’s subsidiary in the equipment category has also secured orders for OCS core module production lines. However, companies like Siver Semiconductor chips are still in trial production, and Lingyun Optics is mainly acting as an agent.