Summary of OCS Switch Industry Conference Call Industry Overview - The OCS (Optical Circuit Switching) switch market is currently valued at approximately $600 million and is expected to exceed $2 billion by 2030, with demand projected to grow to at least 50,000 units [1][5][11]. Key Companies and Their Strategies - **Google**: Leads the OCS switch application in AI scale-up networks, utilizing a unique 3D Torus architecture to interconnect 4,096 TPUs with 48 OCS switches, and supports 9,216 TPUs in the TPU V7 product. Google began exploring OCS in 2017-2018 and started scaling applications in 2023, indicating strong technical accumulation and market leadership [2][3][11]. - **NVIDIA**: Focuses on enhancing data center fault recovery capabilities through OCS switches, using coherent silicon-based liquid crystal solutions for redundancy and continuous operation [1][3]. - **Microsoft**: Evaluates Momentum MEMs and coherent silicon-based liquid crystal solutions for potential use in DCI (Data Center Interconnect) networks, showing rapid progress in hollow fiber layout and DCI interconnect device construction [1][3]. - **Domestic Manufacturers**: Significant players in the OCS supply chain, with companies like Wuxi Dekoli involved in custom development for Google’s next-generation OCS optical modules and MEMs chip manufacturing [2][8]. Market Dynamics and Trends - The demand for Google’s TPUs is expected to drive rapid growth in OCS orders, with conservative estimates suggesting a need for 25,000 units by 2026, potentially generating $1 billion in orders, and increasing to $1.6 to $1.8 billion by 2027 [2][11]. - The OCS technology has gained attention due to advancements that mitigate previous limitations such as long switching delays and limited port numbers, making it suitable for stable traffic scenarios [4][5]. Technical Insights - Current mainstream OCS technologies include MEMs, coherent silicon-based liquid crystal, and piezoelectric ceramic solutions, each with distinct advantages and drawbacks [6][9]. - Google’s next-generation OCS switch is in early development, showing promise in switching delay but not yet meeting industrial production standards [10]. Future Outlook - The OCS market is projected to grow significantly, with potential market share reaching 30% of the current electrical switch market as switching delays improve from milliseconds to microseconds and eventually nanoseconds [5][14]. - The integration of OCS in AI scale-up networks is expected to increase, with AI networks currently accounting for 50% of OCS applications, potentially rising to over 80% in the next three years [15][16]. Conclusion - The OCS switch technology is poised for substantial growth driven by major players like Google, NVIDIA, and Microsoft, alongside domestic manufacturers contributing to the supply chain. The anticipated advancements in technology and increasing demand for high-performance data center solutions will likely accelerate the adoption of OCS in various applications.