New Track for Optical Module Manufacturers

2024-02-23

With the rapid development of artificial intelligence technology, AI computing power has become one of the key factors driving technological progress. Among the three major bases of AI computing power - servers, switches, and optical modules, the importance of switches as the hub of data transmission has become increasingly prominent. Especially after optical modules, switches have become the fastest-growing AI segment, attracting market attention.

In the AI cluster architecture, the ratio of servers, switches, and optical modules is usually 1:1.2:2.5, which means that each server needs to be configured with 1.2 switches and 2.5 optical modules. This proportional relationship highlights the indispensable position of switches in the AI computing power architecture. With the successful application and market recognition of 800G optical modules, 800G switches, as key supporting equipment, have equally broad market prospects.

Data shows that the global switch market will show rapid growth in 2023, with revenue from 200/400G switches increasing by as much as 141.3% year-on-year. This growth rate not only shows the strong market demand for high-speed switches, but also indicates that the switch market is ushering in a new stage of development. According to agency forecasts, by 2025, the adoption rate of 800G switch ports is expected to exceed that of 400G data center switch ports, accounting for more than 25% of port shipments. This trend indicates that switch ports will continue to evolve to higher speeds, providing investors with new investment opportunities.

According to public information, Gongjin Co., Ltd. is one of the first batch of national high-tech enterprises and the main supplier of access network optical cats. As the only listed company that mass-produces 800G switches, it has attracted much market attention. The company not only has deep technical accumulation and rich product lines in the field of switches, but also has built a large number of factories around the world to meet the growing market demand. Its AI switch products have been exported overseas in large quantities, and its expected customers include technology giants such as Microsoft, Google, and Meta. Currently, the trial production of Gongjin's 800G high-end AI switch project is underway smoothly. Once customer commissioning is completed, the product will be delivered in global batches as soon as possible.

According to the information released on the Snowball Finance website, in addition to Gongjin Shares, other related companies such as Zhongji InnoLight, Xinyi Sheng, and Cambridge Technology are also actively deploying the switch market. The efforts and exploration of these companies have not only contributed to the switch market. Prosperity has infused new vitality and will yield generous market returns in the future.

To sum up, the switch, as one of the three major bases for AI computing power, is facing unprecedented development opportunities. As market demand continues to grow and technology advances, the switch market will present a broader market prospect.

High-speed Optical Module Products Unveiled in Spain

Key Technologies for 5G Network Deployment