摩根士丹利-大中华区科技硬件：全球AI光模块行业需求有望进一步走强-Global AI Transceivers：Industry Demand Likely to be Even Stronger-20260514

Morganstanley

May14,202609:00PMGMT

RESEARCH

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GreaterChinaTechnologyHardware

GlobalAITransceivers:IndustryDemandLikelytobeEven

Stronger

WHAT’sCHANGED

AccelinkTechnologiesCo.Ltd.(002281.SZ)PriceTarget

From

Rmb60.00

To

Rmb166.00

EoptolinkTechnologyIncLtd(300502.SZ)

PriceTargetRmb460.00Rmb710.00

Withdemandvisibilitystrengtheningmateriallyinrecent

months,weraiseour2026-28AItransceivershipmentforecasts

andreiterateourpositiveviewontheindustry.

KeyTakeaways

OurUSteamrecentlyraiseditsPTsonLumentumtoUS$900andCoherenttoUS$330.

WereiterateourOWratingonEoptolinkandraiseourPTtoRmb710.

Demand/visibilityhasstrengthenedmaterially,ledbyLumentum:InApril2026,Lumentum’sCEOsaidhyperscalerdemandisacceleratingsoquicklythatthe

companycouldbe“soldoutthrough2028”withintwoquarters.Thecompanyexpects~85%CAGRinInPopticallanevolumedemand(EML,CW,UHPlasers)through2030.

Momentumisbroad-basedacrossAItransceivers:Multiplevendorsreportedlargeorders,productlaunches,andtechnologydemosinMarchandApril,highlighting

continuedrampsin800G,acceleratingadoptionof1.6Tandactivedevelopment

toward3.2T—allconsistentwithintensifyingAIdata-centerbuildoutsandapositiveindustryoutlook.

Forecastrevisionsskewmateriallyhigher:WeraiseourAItransceivershipment

forecaststo73mnunitsfrom53mnin2026,to141mnfrom71mnin2027,andto150mnfrom80mnin2028.Thelarger2027-28revisionsmainlyreflectamore

positiveviewon1.6Tdemand.WenowforecastAItransceiverTAMtogrowfromUS$18bnin2025toUS$102bnin2028,or>4inthreeyears.

Componentshortagesarethekeyrisk;mixisshiftingtowardsiliconphotonics:

AccordingtoLightCounting,siliconphotonics’shareoftheopticaltransceiver

marketrosefrom10%in2018to33%in2024andisexpectedtobecomedominantin2026.WebelievefasterpenetrationreflectsbothperformancegainsandEML

shortages,whichareencouragingalternativesolutions.Componentshortagesremainthekeyrisktorapidvolumegrowthin2026-28.

See:

GlobalTechnology:AITransceivers:GrowthDominatesDisruption

MoRGANSTANLEyAsiALimiTED+

AndyMeng,CFAEquityAnalyst

+8522239-7689

Andy.Meng@

MoRGANSTANLEy&Co.LLCMetaAMarshall

EquityAnalyst

+1212761-0430

Meta.Marshall@

AntonioJaramilloResearchAssociate

+1212761-4438

Antonio.Jaramillo@

MoRGANSTANLEyAsiALimiTED+

BettyChenResearchAssociate

+8522239-7213

Betty.H.Chen@

MoRGANSTANLEyTAiwANLimiTED+SharonShih

EquityAnalyst

+88622730-2865

Sharon.Shih@

DerrickYangEquityAnalyst

+88622730-2862

Derrick.Yang@

HowardKaoEquityAnalyst

+88622730-2989

Howard.Kao@

SamanthaChenResearchAssociate

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NigelvanPuttenEquityAnalyst

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LeeSimpsonEquityAnalyst

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TiffanyYehEquityAnalyst

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GREATERCHıNATEcHNoLoGyHARDwARE

AsiaPacific

IndustryViewın.Line

MorganStanleydoesandseekstodobusinesswith

companiescoveredinMorganStanleyResearch.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofMorganStanley

Research.InvestorsshouldconsiderMorganStanley

Researchasonlyasinglefactorinmakingtheirinvestmentdecision.

Foranalystcertificationandotherimportantdisclosures,refertotheDisclosureSection,locatedattheendofthisreport.

+=Analystsemployedbynon-U.S.affiliatesarenotregisteredwithFINRA,maynotbeassociatedpersonsofthememberandmaynotbesubjecttoFINRArestrictionson

communicationswithasubjectcompany,publicappearancesandtradingsecuritiesheldbyaresearchanalystaccount.

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2

AITransceiverDemandHighlyLikelytobeStronger

AfterLumentum,anindustryleader,indicatedthatitcouldbe"nearlysoldoutthrough2028,"webelievethecyclecouldbestrongerthanexpected.We

thereforeraiseourAItransceivershipmentforecastsfrom53mnunitsto73mnunitsin2026,from71mnunitsto141mnunitsin2027,andfrom80mnunitsto150mnunitsin2028.Thesignificantupwardrevisionin2027and2028mainlyreflectsourmorepositiveviewon1.6Tdemand.Afterthisrevision,wenow

forecasttheAItransceiverindustryTAMtogrowfromUS$18bnin2025toUS$102bnin2028,or>4withinthreeyears.

IntheUS,ourTelecomandNetworkingEquipmentteam,ledbyMetaMarshall,recentlyraiseditspricetargetsonLumentumfromUS$710toUS$900and

CoherentfromUS$290toUS$330,drivenbyastrongerproductionrampandincreasingmarginleverageassupplyremainstight,particularlyinlasers/pumplasersvs.transceivers.

InAsia,wereiterateourOWratingonEoptolinkandraiseourpricetargetto

Rmb710.WealsoraiseourpricetargetonAccelinkonamorepositiveindustrydemandoutlook.ForTFC,wethinktherecentrallyhaspartiallyreflectedCPOupsidepotential,whileweaker-than-expected1Q26resultssupportkeepingourpricetargetunchanged.

OurKeyRevisionsandMSViewvs.ConsensusWesummarizeourkeyrevisionstoAItransceiverestimatesbelow.Exhibit1:WeRaiseour800Gand1.6TShipmentForecasts

(mnunits)

NewEstimates

2026E

2027E

2028E

800G

44

63

64

1.6T

29

79

87

Total

73

141

150

PreviousEstimates

2026E

2027E

2028E

800G

34

48

54

1.6T

19

24

27

Total

53

71

80

Pct.ofchange

2026E

2027E

2028E

800G

29%

31%

19%

1.6T

52%

233%

226%

Total

38%

98%

87%

Source:Companydata,MorganStanleyResearchestimates

Webelieveourforecastsaremorebullishthanconsensus.ComparedwithLightCounting's65%growthforecastin2026,weestimateshipmentgrowthfor800G+1.6Ttoexceed

MoRGANSTANLEyREsEARcH3

200%.For2027,weforecastshipmentgrowthof93%,alsowellaboveLightCounting'sestimate.

Exhibit2:LightCountingForecastsEthernetOpticalTransceiverGrowthof65%in2026and20-30%in2027

Source:LightCounting,DataasofApril2026

WekeepourCPOestimatesunchangedfromthenumberspublishedonFebruary26.

IndustryLeader's'SoldoutThrough2028'CommentReflectsStrongMomentum

LumentumCEOMichaelHurlstonstatedinApril2026thatdemandfromUShyperscalersforthecompany'sopticalcomponentsisacceleratingsorapidlythatthecompanyexpectstofillitsentireorderbookthrough2028withinjusttwoquarters.Inhiswords:"The

capexnumbersfromtheUShyperscalersareenormousandthereseemstobenoendinsight.We'refallingfurtherandfurtherbehindthedemand.Wewouldbesoldoutthroughallof2028withintwoquarters."PerLITE'sOFCinvestorbriefingonMarch7,2026,thecompanyexpectsan~85%CAGRinInPopticallanevolumedemandforEML,CW,and

UHPlasersthrough2030.CoherenthasalsospokenaboutscalingInPcapacityby100%+overthenexttwoyears,whichshouldsupportcontinuedsequentialacceleration.

SumitomoandBroadcomhavealsocommentedoncapacityexpansions.

4

Exhibit3:DemandStillOutstrippingSupply

Source:Lumentum.

Exhibit4:SignificantRampsinCapacitytoAccommodateDemand,ButStillVery

MuchinShortage

WhatWeKnow

ExpansionofCapacity

50%+inCY26fromLITE

100%inCY26/100%+inCY27fromCOHR

100%from'24–'26/40%from'26–'28fromSumitomoSignificantCapacityExpansionsfromBroadcom

WhatWeDon’tKnow

SplitofEML/CWLasers

EstimatesforCWas%of1.6Tvaryfrom30%toover50%

Source:Companydata

AITransceiverMomentumRemainsStrong;OpticalSupplyConstraintsPersist

BeyondthepositiveupdatesfromLumentum,otherAItransceivercompanieshavealso

seenawaveofpositivedevelopmentsthroughOFCandintoearnings,drivenbysurgingAIdatacenterdemand,majorneworders,productlaunchesandtechnologybreakthroughs.Belowareseveralrecentopticalnotesdiscussingthesehighlights:

Optical:OFC2026Wrap-Up:BrightLights,BigCity(March19,2026)

Lumentum:OFCInvestorBriefingWrap-Up:MultipleWaystoWin(March18,2026)

Optical:LatestQuestionsFromInvestorsasOpticalBreaksOut(April20,2026)

Lumentum:ShowingPricingPowerinMargins(May6,2026)

Coherent:ExecutingtoPlan(May7,2026)

Corning:Springinginto2030-ThinkingInsideandOutsidetheBox(May7,2026)

.Coherent(March18,2026/May6,2026):Coherentpresentedamarket-leading

roadmapforpluggabletransceiverscovering800G(continuedramp),1.6T(acceleratingramp),and3.2T(indevelopment).Thecompanyalsodemonstratedanindustry-first400G

MoRGANSTANLEyREsEARcH5

end-to-endlinkandintroducedanewXPOformfactorforhigh-densityapplications.OnFQ3earnings,managementframedJuneasa“newinflectionpoint”forrevenuegrowth,drivenbyacceleratingsequentialrevenuegrowth,strongdemandandimprovingsupply.ManagementalsonotedthatInPcapacityisexpectedtodoublebyyear-end,onequarterearlierthanplanned.

-AOI(March9,2026/May7,2026):OnMarch9,2026,AOIreceiveditsfirstvolume

orderfor1.6Tdatacentertransceivers,withtheinitialordertotalingmorethan$200mn.OnMarch23,2026,AOIreceivedanewvolumeorderfor800Gsingle-modedatacentertransceiversfromthesamehyperscalecustomer,totalingmorethan$53mn.OnApril2,2026,AOIreceivedanadditionalupsized$71mnorderfor800Gtransceiversfromthe

samecustomer,bringingtotalordersfromthiscustomerto$124mnsincemid-March.FQ1resultswereslightlydisappointingascapacitywasstillramping,perhapsmoreslowly

thanexpected,butmanagementcontinuedtohighlightstrongdemandconditions.

-Fabrinet(May4,2026):Fabrinetreportedlargelyin-lineresults,withthebiggestnear-termoutperformanceinthetelco/DCI/scale-across/ZRportfolio.Onthecall,the

companynoted:"Wecouldhaveshippedalotmoreifwehadthosecomponents,you

know,withoutthesupplyconstraints,datacomrevenuewouldhavebeenanewrecordbyawidemargin.Whileweexpecttheconstraintstogetresolvedovertime,wedohavetodealwiththemrightnow.Inthenearterm,weanticipatethatsupplyvolatilitywill

continue.And,youknow,it'sinanumberofareas.It'snotanyonecomponent.It'smainlylasers,memory,whichIthinkit'snosecretthatthere'saglobalshortageofmemory.AndalsocertainAsics.Soit'sacrossanumberofcommodities."

-Eoptolinkdemonstrateditsnext-generationIMDD400Gper-lambdabased1.6TDR4OSFPtransceiveratOFC2026,reducingrequiredfibercountby50%comparedtotheprevious-generation1.6TDR8architecture.

-HyperPhotonixunveileditsnext-generation1.6Topticaltransceiverproductlinebasedon200GperlaneSiliconPhotonics(SiP)technologyatOFC2026.

-ENET(March5,2026):Launcheditsnew1.6TDR8OSFP224opticaltransceiverdesignedforAI,HPC,andhyperscaledatacenterenvironmentsusing224Gelectricalsignaling,

compatiblewithNVIDIAswitches.

-LinktelTechnologies(March18,2026):Its800GOSFPFR410kmand800GOSFP

2LR4+20kmdispersionmanagedtransceiverswon2026LightwaveInnovationAwards,receivingscoresof5.0and4.0,respectively,settinganewindustrybenchmarkforstable,long-reach800Gconnectivity.

-Siemon(April28,2026):Launchedaportfolioof200G,400G,and800GPAM4high-speedopticaltransceiverstosupportAI,HPC,andnext-generationdatacenternetworks,availableinOSFPandQSFPDDformfactors.

AccordingtoLightCounting,siliconphotonics'shareoftheopticaltransceivermarketrosefrom10%in2018to33%in2024andisexpectedtobecomethedominanttechnologyin2026forthefirsttime.Webelievethisreflectsbothsiliconphotonics'goodperformanceandEMLshortages,whichareencouragingmoreenduserstoadoptsiliconphotonics

solutions.

6

WeRaiseourAITransceiverIndustryForecastsin2026-2028e

OurpositiveviewonAItransceiverdemandremainsunchanged,supportedbyseveralkeyfundamentaldrivers:

1.AIdatacenterexpansion:ThelargeincreaseindemandforAIdatacentersisa

primarydriveroftransceivergrowth.AsAIworkloadsexpand,connectivityis

shiftingawayfromcopperandelectricalsystemstowardopticalcontent,requiringadvancedopticaltransceiversforrack-to-rackconnections.

2.StrongAIcapexfromgloballeaders:Thetop11cloudplayersarenowestimatedtospendapproximatelyUS$735-795bnoncashcapexin2026,representing

approximately60%YoYgrowth.Forexample:

a.WeexpectAmazontodevoteapproximatelyUS$200bntocapexin2026(+52%Y/Y).

b.Google/Alphabethasguidedfor2026capexofUS$175-185bn(+97%Y/Yatthemidpoint).

c.MetaPlatformshasguidedfor2026capexofUS$115-135bn(+73%Y/Yatthemidpoint).

3.Continuousnewproductinnovation:Asnetworkarchitecturebecomesmore

complexanddemandfordatatransmissionspeedincreases,theindustryisseeingstronggrowthinboth800Gand1.6Ttransceivers.The1.6Tramphasbrought

higherASPsandbettermargins.3.2TR&Disalsointhepipelineandcouldbecomeanothergrowthdriverintheyearsahead.

However,thepositivesurpriseswehaveobservedinMarchandAprilsuggestdemandisevenstrongerthanexpected.Wethereforereviseupourestimates,especiallyfor1.6Tin2027eand2028e.Formoredetail,pleasesee

Exhibit1

.

Afterthisrevision,weexpectAItransceiverindustryTAMtoincreasefromUS$18bnin2025to~US$102bnin2028,or>4xthe2025level.

Exhibit5:GlobalAITransceiverTAMtoexpandby>4xfrom2025-2028e

IndustryTAM

toexpand>4x

from2025to

2028

2022202320242025E2026E2027E2028E

120

100

80

60

40

20

0

UnitinUS$bn,Source:CompanyData,Omdia,MorganStanleyResearch(E)estimates

MoRGANSTANLEyREsEARcH7

CPODevelopmentHasBecomelessSurprising

WehaveobservedacceleratedCPOdevelopment,supportedbyrecentcommentsfromleadingUScompaniesduringtheir2QFY26resultscalls.Sincethen,CPOdevelopmentshavebecomelesssurprising,andwemaintainourbull-base-bearestimatesunchanged,asoutlinedbelow:

Basedonoursemiconductorcolleaguesıanalysis,CPOswitchvolumecouldgrowfrom4,712unitsin2025to103,889unitsin2028underourbasecasescenario.

Underourbullcasescenario,CPOswitchvolumecouldincreasefrom2,500unitsin2025to50,000unitsin2028.

Underourbearcasescenario,CPOswitchvolumecouldevenincreasefrom10,000unitsin2025to250,000unitsin2028.

WenotethatCorningisthelatestcompanytoreceivealargeinvestmentfromNVDA,announcedatits

AnalystDayonMay6,2026.

ThisinvestmentgivesNVDAampleaccesstofiber/opticsforCPO,butthebulkoftheimpactstartsin2028.ViewsdifferonCPOpenetrationby2030,withestimatesrangingfrom10%to50%.

Exhibit6:Corning'sOpportunityRoadmapPostNVDAInfusionNotesRelativelySmallCPOImpactBy2028

Source:Corning.

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Exhibit7:Ourbase,bull,andbearcasesfor800G/1.6Tglobaldemandforecastsin2026-28e

8

Source:Companydata,MorganStanleyResearch(E)estimates.

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KeyStocks

MoRGANSTANLEyREsEARcH9

1)AItransceiverplayers

Eoptolink:WereiterateOWonEoptolinkandraiseourpricetargettoRmb710.We

believethecompanyisakeymarketsharegainerinboththe800Gand1.6Ttransceiversegments.Itishighlylikelytogenerateabove-industrygrowth,whichisakeyre-ratingdriverforthestock.

SuzhouTFC:WemaintainourRmb371pricetargetandEWrating.WebelievetherecentsharepricerallyhasalreadyreflectedthepotentialpositiveimpactfromacceleratedCPOdevelopment.However,thecompanyshouldalsobenefitfromstrongAItransceiver

industrygrowth,whichshouldhelpsupportitsvaluationpremiumintheA-sharemarket.

Coherent:WeseelikelybetteropportunitywithCoherentvs.LITEinthemediumtermifitcanexecuteonsharegainopportunities.Coherenthasseenlittleofthemargin

accretionthatLITEhasdelivered;asits100%InPcapacityexpansioncomesonline,thisshouldsupportthestock.WeseeCoherentasmoresusceptibletovolatilityaroundCPO,givenitslargertransceivervolume,thoughthiscouldbeoffsetbylaserrevenue.

Lumentum:LITEisup900%+overthepastyear(vs.theS&P500's26%increase).Buy-sideestimatesarecallingfora20xincreaseinearningsoverthenextthreeyears(and

applyinga20-25xmultipletothat).Therefore,wedothinkthateventhoughthecompanyisexecutingextremelywellonthecurrentmarketopportunity,thestockwouldbemostatrisk,giventhatestimatesneedpricingconditionstostayinplacethroughFY28to

supportvaluation.

LandMark:LandMarkisthededicatedSiPhepiwafersupplierforcustomizedtransceiversformajorUSCSPs.Weexpectitsclosesupplyrelationshipwithlarge-scaleCSPcustomerstodriveSiPhrevenuegrowthof148%and69%YoYin2026and2027e,respectively,

accountingfor>80%oftotalrevenue.LandMarkrecentlysignedafive-yearsupplyagreementforInPsubstrateswithSumitomoElectric,whichshouldhelpalleviateInPsubstratesupplytightness.

VPEC:VPECalsoprovidesepiwaferservicesforopticaltransceivers,mainlyforphotonicdiodes(PDs),butisoextendingitsofferingtolaserdiodes(LDs)fordatatransmission

scale-across.WeexpectitsAIdatacomrevenuetodoubleYoYin2026,whileInPsubstratesupplyremainstheswingfactorforitsnear-termoptical-relatedproduction,giventheInPsubstrateexportbaninChina

Luxshare:Luxshare's800Gopticaltransceivermoduleisinmassproduction,whileits1.6Tmoduleisunderqualification.

2)PCBsandConnectors

AnincreaseintransceiverdemandwouldbenefitrelatedPCBsupplierssuchas

Unimicron,ZhenDing,andShennan.ThesecompaniesarekeysuppliersoftransceiverPCBs,whichrequiremoreHDI/mSAPtechnology.Ourunderstandingisthatthisspace,especiallyfor800G+transceiverPCBs,iscurrentlycapacityconstrained,soexposed

suppliersshouldbenefitmeaningfullyintermsofrevenueandprofitability.

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However,investorsremainfocusedonthelonger-termshifttoCPO.Wethereforere-highlightthechangeswethinkcouldaffectourcoverageastheindustryshiftsfrom

10

discretetransceiverstowardCPOarchitecture.

WebelievethisshiftcouldposestructuralheadwindsforPCBandCCLvendorsunderourcoverage,includingShennanCircuits,ZhenDing,Unimicron,GoldCircuit,and

ShengyiTech,andwewillcontinuetomonitorthesituation.

Shennan,ZhenDing,andUnimicronarelikelytofacemoredirectpressurefromtheeliminationofHDI/mSAPPCBsusedinopticalmodules,giventheirrelativelyhigher

revenueexposuretothissegment.

Meanwhile,GoldCircuitandShengyiTechcouldbeadverselyaffectedbythede-specofswitchmotherboardsunderCPOarchitecture,asopticsareco-packagedwith

networkingASICsonthesubstrateratherthanmountedonthemotherboard.

WealsoexpectCPOadoptiontobeslightlynegativeforelectricalcoppercable

supplierswecover,suchasFITandLotes.Thatsaid,webelievecoppersolutionswillstilldominatethedatacenterinterconnectmarketoverthenextcoupleofyears,giventheircostadvantageandbroadsupplierbase.

Incontrast,weseeICsubstratesasakeybeneficiaryofthetransitiontoCPO.Co-

packagingopticsontoICsubstratesisexpectedtodrivemorecomplexsubstratedesigns,includinglargersubstratesizes,higherlayercounts,andtheadoptionofmoreadvancedstructuresandmaterials.Thiswouldtranslateintohighersubstrateareaconsumption,helpingabsorbthecurrentoversupplyintheABFsubstratemarketandsupportingan

acceleratedrecoveryinsupplierprofitability.

WebelievebothUnimicronandNYPCBinourcoveragewillbenefitfromthistrend,

giventheirexpertiseinproducinghigh-endnetworkingASICsubstrates.

Thatsaid,theavailabilityofcriticalsubstratematerials,particularlyT-glass,willbeakeyfactortomonitor.Itcouldemergeasasupplybottleneckiflarge-areasizesubstrates

becomemorewidelyadoptedinCPOarchitecture.

3)Interconnect,testingequipmentandnetworkswitches

Bizlink

Bizlinkwasoriginallyviewedasoneoftheplayersinthecoppercamp,butitsacquisitionofXFShasopenedupmoreopportunitiesinCPObyenhancingitsopticalcapabilitiesandcustomerrelationships.OurchecksindicatethatBizlinkwillprovideshuffleboxassemblyforCPOswitches.

Blizlinkhasnoexposuretocurrentlaserdiodebasedtransceivers,butitisworkingwithpartnerCredoonmicroLED-basedopticalinterconnectsorALCs.WeviewALCaswellsuitedfor20-30meterdeployments,withbettercostperformanceandpowerefficiencythanmainstreamtransceivers.WeexpectALCshipmentstostartfrom2Q27atthe

earliest,perguidancefromCredo.

Chroma

ChromashouldbenefitfromtheCPOthemethroughitstestingequipment.Ourchecks

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indicatethatitwillprovidethetestingequipmentforInsertion3(opticalenginetesting)andInsertion4o(opticaltestingfortheswitchIC+OE).Weexpectshipmentsforpilot

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capacitytostartin2H26,withmoreconfirmedordersscheduledfor2027.Longerterm,ChromamighthavemoreopportunitiesinInsertion1oradditionaltestingprocessesifexistingequipmentsupplierscannotdelivertherequestedperformance.

Chromaalsohasastrongpresenceinopticaltestingequipmentfortransceivers.Duringitslatest1Q26earningscall,managementsaiditisseeingverystrongordersfromcustomersinthisarea,withorderscontinuingtoflowin.

Accton

AsoneofthemajornetworkswitchODMdirectsuppliers,AcctonshowcaseditsCPOswitchmodelatthelatestOFCinMarch.WebelieveAcctonisnowengagingwith

potentialcustomersonODMprojectsforCPOswitches.

4)Europeanstockideas

STM:STMicroispositioningitselfasasupplierfornext-gendatacentreconnectivitybydevelopingitscapabilitiesinsiliconphotonicsandBiCMOStechnologies.Both

technologiesarerelevanttoCPOandhigh-speedpluggabletransceivers,withSTM

seekingtoaddressthegrowingdemandforhigherbandwidth(800Gbpsto1.6Tbps+)andimprovedpowerefficiencyinAIclusters.STMviewsCPOasasolutiontothelimitationsoftraditionalelectricalI/O,whichcannotkeepupwiththebandwidthrequirementsofAI.By2030,STMexpectsamulti-billion-dollarTAMforitssiliconphotonicsfoundryservicesasdatacentresincreasinglyadoptthesetechnologies.

Howisthisbeingdone?Fromaproductionandtechnologyrolloutperspective,STMismigratingitsSiPhtechnologyonto300mmwafers(attheCrolles,Francefacility),withfirstproductsshippingandproductionrampingin2H26.Whileinitiallyfocusingon

800Gb/sand1.6Tb/spluggabletransceivers,STMisalsodevelopingtechnologyforthelong-termshifttowardCPO,whichinvolvesplacingopticalenginesimmediatelyadjacenttohigh-speedswitchASICs.ThecorecomponentsofferedbySTMincludesPhotonic

IntegratedCircuits(PICs),includingthePIC100tobeusedbyAWS,andElectronic

IntegratedCircuits(EICs)usingSTM’sownBiCMOStechnologyforhigh-speedlaser

driversandamplifiers,supportingupto400Gbpsspeeds.TosupportthefuturemovetoCPO,STMisdevelopingsmallermodulatorsandexploringthrough-siliconvias(TSVs)toreducethepowerdrawandminimisesignallossbetweenthePICandEIC.

O