Although the DeepSeek model reduces the cost of AI training, the low cost of AI models is expected to expand application scenarios and thereby increase the number of data centers built worldwide.
As a key component of data center interconnection, optical transceiver modules will benefit from the demand for high-speed data transmission. In the future, data transmission between AI servers will require a large number of high-speed optical transceiver modules, which are responsible for converting electrical signals into optical signals and transmitting them through optical fibers, and then converting the received optical signals back into electrical signals.
DeepSeek, CSP, and AI software companies will jointly promote the popularization of AI applications, especially since a large amount of data will be generated at the edge in the future, which means that a large number of micro data centers will need to be built in factories, wireless base stations and other places. And through the dense deployment of optical transceiver modules, it is expected that the number of optical communication nodes in each factory will increase by 3-5 times compared with the traditional architecture. Compared with traditional electrical signal transmission, fiber optic communication has higher bandwidth, lower latency and lower signal attenuation, which can meet the stringent requirements of AI servers for high-efficiency data transmission, making optical communication technology an indispensable key link in AI servers. The demand for AI servers continues to boost the growth momentum of optical transceiver modules to 800Gbps and 1.6Tbps. As traditional servers are upgraded in specifications, the demand for 400Gbps optical transceiver modules has also been driven.
As for CW lasers (continuous wave lasers) in silicon photonic modules, since the functions of laser light modulation and wave splitting are integrated into the silicon photonics (SiPh) process, only the light source needs to be provided, and some manufacturers have therefore entered the CW laser foundry supply chain. For example, Triumph produces CW lasers for international data center manufacturers, while Huaxing Optoelectronics and Aura combine laser chip processes for foundry.
In the optical sensor supply chain, the main suppliers are currently concentrated in the hands of major manufacturers in the United States and Japan that already have laser light sources, such as Broadcom, Coherent, Lumentum, Hamamatsu and other companies. However, as the transmission speed of optical modules increases to around 200Gbps, the challenges of optical sensors are becoming increasingly high. Since the quality of optical sensors depends on the sensitivity of light collection. Therefore, the uniformity of epitaxial material doping or structural defects will affect the light collection effect. At present, in addition to Broadcom's completely self-made 200Gbps Per Lane APD (avalanche photodiode) optical sensors, Coherent's 100Gbps and Lumentum, Hamamatsu and other major manufacturers' 200Gbps APD epitaxy are outsourced to the American company IET.