News on July 1 Recently, many people in the optical module industry chain bluntly stated that the demand for 5G is lower than expected. At the same time, LightCounting also pointed out in the latest report that 5G deployment is slowing down, especially in the Chinese market, and don’t hold too much hope for the return of 5G fronthaul demand in the short term.
At the same time, in the field of 5G fronthaul, the three major domestic operators have launched innovative solutions. But so far, the centralized procurement of the three major operators has not purchased innovative solutions on a large scale, and is still dominated by traditional passive CWDM. As an important part of related solutions, optical module manufacturers have followed suit, and the delay in large-scale centralized procurement has also put pressure on manufacturers who invested in the early stage.
In addition, since the industry was generally optimistic about the 5G market prospects at the beginning, before the 5G cycle started, in addition to the early deployment of traditional optical module manufacturers, optical equipment, optical fiber and cable companies also joined together. In addition, many listed communication companies have also entered this market with the help of capital. The slowdown in the overall demand for 5G may also make these companies a little confused.
However, on the whole, the development of my country’s optical module market is still in the growth stage. According to market reports, China has accounted for 6 of the world’s top 10 optical module companies, compared with only 1 selected 10 years ago. Ranked 10th to 15th, there are many Chinese optical module companies.
In addition, although the demand for 5G is difficult to return in a short time, in the fields of data communication optical modules and next-generation access network modules, there is still a trend of rapid growth. The rising capital expenditures of leading cloud service manufacturers and the accelerated advancement of gigabit optical networks are all good evidence.
LightCounting data shows that the 400G high-speed optical module market will have an average annual compound growth rate of 20.5% by 2026, and the 400G optical module market space will exceed US$1 billion in 2021, a year-on-year increase of 140%.
Of course, although domestic optical module manufacturers are already in the top position in terms of overall market share or global ranking, there is still a certain gap in the fields of high-end optical and electrical chips, and they are still catching up. Chip production modules are the status quo of the industry, but there has been some progress. 25G DFB/EML optical chips and 25G/50G electrical chips have entered the stage of mass production and practical use. It also continues to make breakthroughs in the production and manufacturing of high-end optical modules.
The leader in data communication optical modules, InnoLight Technology has always been in a leading position in the high-end optical module market. In order to maintain its competitive advantage, it plans to invest nearly 3 billion yuan this year, aiming at the large-scale production of 400G high-end optical modules, and the research and development and development of 800G optical modules. put into production.
A few days ago, Feipu Technology, a wholly-owned subsidiary of Sichuan Guangheng Communications held by YOFC, held the “Completion and Commencement Ceremony of the Project with an Annual Output of 10 Million High-end Optical Devices and Optical Modules” in Meishan City, Sichuan Province. At the same time, it also contributes to the development of the domestic high-end optical module industry.
Since entering the optical module industry, Hengtong has positioned itself in the design and manufacture of high-end optical modules. It will release 400G silicon optical modules in 2020 and achieve mass production in 2021. The 800G silicon optical module was released again at this year’s OFC, achieving another breakthrough in the field of high-speed optical modules and entering the main track of high-speed optical modules.
After the acquisition of Lumentum’s optical module production line, Cambridge Technology has actively carried out integration, focusing on optical modules above 100G and focusing on the high-end optical module industry.
Therefore, the slowdown in demand in a certain market will always be filled by another area, and more importantly, it is necessary to cultivate internal strength and maintain its own competitiveness.
Source: C114 Communication Network
Author: Shui Yi