Summary of Conference Call Records Industry and Company Overview - The focus is on the isolator and Faraday rotator market, specifically highlighting **Dongtian Micro** and **Fujing Technology** as key players in the industry [1][2][3][4][5][6]. Key Points and Arguments Dongtian Micro - Dongtian Micro is the only listed company in China specializing in isolators, having transitioned from consumer electronics filters to communication optical components, including Z-Block and isolators [3]. - In 2025, the company achieved approximately **90 million yuan** in isolator revenue for the first three quarters, with an expectation to exceed **100 million yuan** for the entire year [3]. - Without considering the expansion of Japanese manufacturers, Dongtian Micro anticipates revenue of around **300 million yuan** in 2026 [3]. Fujing Technology - Fujing Technology has made progress in the localization of Faraday rotators, with products already applied by domestic end customers and ongoing certifications with major isolator manufacturers like Xingyu, Wireless Light, and Angna [4][5]. - The company is expected to improve its yield rate significantly within two months, enhancing its capacity for expansion [5]. - Fujing Technology controls upstream SEE chips, providing a competitive advantage for expansion amid increasing supply-demand gaps [5]. - The company is also developing its OCS (Optical Crystal Substrate) business, leveraging cost advantages from material price increases during the pandemic for production investments [6]. - There is a synergistic effect between the OCS and Faraday rotator businesses, as clients for OCS often overlap with those needing Faraday rotator modules, which could lead to sustained growth in related businesses [6]. - Fujing Technology's current market capitalization is approximately **27 billion yuan**, indicating potential for further growth [6]. Additional Important Insights - The isolator and Faraday rotator market is currently in a state of supply shortage, exacerbated by the largest global supplier, **Finisar**, halting external sales to support internal module shipments [2]. - Feedback from the **UBS Global Technology Summit** confirms that Faraday rotators are among the most scarce components in the upstream of optical modules, leading to renewed interest in the isolator and Faraday rotator supply chain [2].