Zhong Guo Neng Yuan Wang·2026-02-27 01:39Group 1 - The core viewpoint of the report highlights the rapid growth of the Optical Circuit Switch (OCS) market, driven by increasing demand for AI data center computing power and expanding customer penetration and application scenarios, with a projected market size of approximately $4 billion by 2025 and over $2.5 billion by 2029, reflecting a CAGR of about 58% [1][3] - OCS technology enables direct switching of optical signals between fiber ports without the need for optical-electrical-optical (O/E/O) conversion, significantly reducing latency and power consumption, with potential power savings of over 30% for AI computing clusters and data center optical interconnect systems [2] - There are four main technical routes for OCS, including MEMS, liquid crystal, piezoelectric, and silicon waveguide, with MEMS being the fastest commercialized solution developed by Google, indicating a shift from a "self-research + foundry" model to OCS system procurement, thus expanding the market [2][3] Group 2 - As SerDes rates continue to upgrade, OCS technology is expected to see rapid growth among customers beyond Google, with Lumentum reporting an OCS order backlog exceeding $400 million, primarily from three core customers, and anticipated revenue exceeding $100 million by Q4 2026 [3] - The report suggests that as the penetration rates of Google and other customers increase, the demand for OCS-related components and materials (such as collimators, yttrium vanadate lenses, and optics) will rise, benefiting domestic manufacturers, especially those with deep collaborations with leading overseas firms [3]