Summary of Conference Call Records Industry Overview: Optical Modules - The optical module industry is experiencing a significant increase in demand, particularly for 1.6T products, which is expected to lead to tighter upstream supply chains. The demand for 800G products is already substantial, and the introduction of 1.6T products will further exacerbate supply constraints [2][3][4]. Key Supply Chain Bottlenecks - **EML Chips**: High costs and manufacturing complexity limit supply elasticity, with current capacities largely locked in. EML chips are essential for long-distance transmission due to their superior optical quality [3]. - **Silicon Photonics Fab Capacity**: The shift towards silicon photonics has created a competitive landscape similar to semiconductors, with companies like Tower being critical for production. Domestic firms are gradually developing capabilities but still rely on external fabs [3]. - **High-Speed DSP Chips**: Dominated by overseas companies like Marvell and Broadcom, the supply of DSP chips is crucial for the industry. Marvell is expected to release a second-generation product that may alter the current market dynamics [4]. - **Passive Components**: Components like isolators are facing supply shortages due to disruptions in production, particularly from Japanese manufacturers. Domestic alternatives are emerging to meet the demand [4]. Competitive Advantages in the Current Market - Companies that can secure available products, maintain sufficient production capacity, and have a clear industry positioning will gain a competitive edge. New易盛's recent order of 1.5 billion chips demonstrates strong supply chain control and addresses market concerns about supply stability [5][12]. Market Consensus and Investment Logic - The capital market consensus on the optical interconnect industry is strengthening, with a focus on hardware investments driven by AI. The expectation for optical technology investments has increased significantly for 2026 compared to previous years. The prevailing market logic is centered around supply shortages, which are expected to create price elasticity [6][10]. Role of Silicon Photonics Technology - Silicon photonics is emerging as a key solution to address supply chain bottlenecks, particularly the shortage of EML chips. The current mainstream silicon photonics solution involves using external continuous wave (CW) lasers for light emission, which alleviates reliance on EML chips [7][8][10]. New Technologies and Market Evolution - New technologies such as CPO, NPO, and optical switching are expected to gain traction in the optical interconnect market, addressing various application needs and alleviating supply chain pressures. These technologies are anticipated to enhance market growth potential [11]. New易盛's Procurement Agreement - New易盛's procurement agreement with its subsidiary 红晨光 has seen a dramatic increase in order volume, from approximately 100 million yuan in 2025 to 1.5 billion yuan in 2026, reflecting a significant boost in supply chain stability and market confidence [12][13]. Future Product Matrix and Market Trends - The optical communication market is expected to evolve beyond plug-and-play modules to a more diversified product matrix, including NPO, CPO, and optical switching solutions. Major companies are already positioning themselves to capitalize on this trend [13]. Industry Performance Expectations - The overall performance of the optical module industry in Q1 2026 is expected to be positive, with a significant acceleration in growth anticipated in Q2, aligning with seasonal trends [14]. Liquid Cooling and IDC Sector Developments - The liquid cooling sector is projected to see significant shipments starting in H2 2026, with 英维克 being a key supplier. The IDC sector is experiencing optimistic demand growth, particularly from major players like 字节 and 阿里, although rental prices remain low [15].