Investment Rating - The report maintains a "Positive" investment rating for the communication equipment industry [7]. Core Insights - Optical Circuit Switching (OCS) technology allows for routing and forwarding of optical signals without optical-electrical conversion, offering ultra-high transmission speeds, low latency, low power consumption, and high stability compared to traditional switches. This technology is expected to significantly enhance the value of the industry chain in the long term [2][10]. - Google has integrated OCS technology into its TPU v4 generation, which is now in large-scale deployment. Major overseas optical communication leaders are actively promoting OCS products, with significant revenue contributions expected by 2026 [2][10]. Summary by Sections OCS Technology Overview - OCS operates on the principle of direct optical signal switching, eliminating the need for optical-electrical conversion, thus providing advantages such as ultra-high transmission speed and low power consumption. It is seen as a potential long-term replacement for electrical switches [10]. - LightCounting predicts that OCS shipments will experience explosive growth, reaching 10,000 units in 2023 and exceeding 50,000 units by 2029 [10]. Competitive Landscape - There are three main approaches to OCS technology: MEMS, Digital Liquid Crystal (DLC), and Direct Laser Beam Steering (DLBS). Google and Lumentum primarily use the MEMS approach, while Coherent employs the non-mechanical DLC method [10]. - The report highlights that Lumentum and Coherent have begun generating revenue from their OCS businesses, with expectations for continued revenue growth in upcoming quarters [4][10]. Market Outlook - The report suggests that OCS technology will replace electrical switches in the spine layer first, with potential penetration into the leaf/ToR layer in the future. The market for OCS is projected to expand significantly, with an estimated market space of around $2 billion [10]. - Key players to watch include optical system manufacturers with first-mover advantages, as well as manufacturers of passive optical components and laser sources [10].

Core Viewpoint - The significant growth in the performance of optical module companies in the first half of 2025 is closely linked to the rising demand for computing power driven by the acceleration of the global AI industry [1][2]. Group 1: Company Performance - Taicheng Light reported a revenue of 828 million yuan in the first half of 2025, a year-on-year increase of 62.49%, with a net profit of 173 million yuan, up 118.02% [2]. - Zhuhai Guangku Technology achieved a revenue of 597 million yuan, a 41.58% increase, and a net profit of 51.87 million yuan, up 70.96% [2]. - Huagong Technology's net profit reached 911 million yuan, reflecting a year-on-year growth of 44.87% [2]. - Multiple companies indicated that their performance growth is a direct result of increased market demand for computing power [2]. Group 2: Market Demand and Trends - The optical module market is expected to grow by 45% in 2024, driven by the AI industry [4]. - The global shipment of 1.6T optical transceivers is projected to rise from approximately 2.7 million units in 2024 to about 4.2 million units in 2025 [4]. - The demand for high-speed optical modules, such as 400G and 800G, is accelerating due to the rising computing power needs of domestic internet and equipment manufacturers [2][4]. Group 3: R&D and Capacity Expansion - Companies are increasing R&D investments and expanding production capacity to capture market share and technological advantages [4][5]. - Huagong Technology's R&D investment reached 461 million yuan in the first half of 2025, a 19% increase [4]. - Taicheng Light is expanding production capacity with new facilities in Vietnam and has already begun supplying 800G optical modules while developing 1.6T modules [5]. - Zhongji Xuchuang plans to enhance data center construction and expects growth in demand for 800G and 1.6T modules [5]. - New Yisong is preparing to increase the proportion of silicon photonics products and has expanded production capacity in Thailand [5]. Group 4: Future Outlook - The supply of optical module products is expected to peak in the coming years due to the establishment of large-scale data centers and the acceleration of 5G-A network construction [6]. - Emerging fields such as vehicle networking and industrial internet will provide long-term growth momentum for the optical module market [6].

Core Viewpoint - The company, Taicheng Light (300570), announced on August 21 that it is actively involved in the development and small-scale manufacturing of CPO wiring solutions using its MPO and FAU products, indicating a significant enhancement in this business segment [1] Group 1 - The company is collaborating with clients on research and small-scale manufacturing of CPO wiring solutions [1] - FAU products are also utilized in high-speed optical module supporting products, showing a notable increase in this business area [1] - The subsidiary, Ruixin Yuan, has a platform for manufacturing AWG chips and is currently engaged in ongoing research and development, which may lead to new market opportunities in the future [1]

Core Viewpoint - The company, Taicheng Light (300570), emphasizes that its core product, MPO, has been a key factor in its market competitiveness and is poised to benefit from the rising opportunities in the AI industry [1] Group 1: Product and Market Position - MPO has historically represented the company's market competitiveness [1] - The company has leveraged its years of manufacturing experience and industry reputation to capitalize on new market opportunities arising from the AI sector [1] Group 2: Partnerships and Production - The company has received authorization from USConec for the production and assembly of MMC and MDC connectors, which have now entered mass production [1] - The MDC series products, including connectors and adapters, have also received patent authorization from USConec, allowing the company to offer self-produced MDC products in the future [1]

证券日报网讯太辰光（300570）8月21日发布公告，在公司回答调研者提问时表示，公司的发展受多种 因素影响。在AI驱动全球算力需求爆发的背景下，公司将积极把握行业机遇，对未来的发展持良好信 心。 ...

Core Viewpoint - The company, Taicheng Light (300570), focuses on passive optical devices as its main product, with optical modules serving as a supplementary core business to meet customer needs and enhance the development of passive products [1] Group 1: Product Positioning - The primary products of the company are passive optical devices [1] - Optical modules are positioned as a core business supplement, fulfilling customer support needs and promoting the research and development of passive products [1] Group 2: Product Development - The company has already begun supplying 800G optical modules [1] - The 1.6T optical module is currently under development [1]

证券日报网讯太辰光（300570）8月21日发布公告，在公司回答调研者提问时表示，2025年Q1毛利率较 高是受产品结构的影响，并非常态。Q2毛利率还受到产线扩产等因素影响，因此较Q1环比有所下降。 公司毛利率近几年保持在30%出头，未来有信心维持。 ...

Group 1 - The company has focused on the development of CPO-related passive products in recent years [1] - The company maintains its leading position in the flexible optical board sector, continuously optimizing technology and enhancing advantages [1] - The company is conducting research and development to meet high core count and high standard customer demands for FAU [1] - The technology and product development for polarization-maintaining MPO/FAU is also continuously improving [1]

Group 1 - The core product of the company is passive optical devices, active optical devices, and optical sensing products, with passive optical devices accounting for over 90% of the revenue [1]

Core Viewpoint - The company, Taicheng Light (300570), announced on August 21 that it is focusing on the development of passive optical products, emphasizing market-leading technologies and customer needs [1] Group 1 - The company is developing products such as hollow core fiber connectors and V-grooves [1]