China CPO: RoboTechnik (300757.SZ) Chairman visit: CPO and OCS in expansion; automated testing and alignment required 20 January 2026 | 9:10PM HKT Equity Research We hosted RoboTechnik (300757.SZ, Not Covered) Chairman on Jan 20 at the GS Tech AI Outlook Corp Day in Hong Kong. RoboTechnik entered the photonics assembly and testing space via the acquisition of FiconTEC (private, announcement), which is a global leader in automated assembly and testing systems for integrated photonic devices and components. O ...

Core Insights - POET Technologies Inc. has announced a strategic collaboration with Sivers Semiconductors AB to develop high-performance External Light Source (ELS) modules for Co-Packaged Optics (CPO) and next-generation AI infrastructure [1][2][4] Company Collaboration - The partnership combines Sivers' high-power distributed feedback (DFB) laser technology with POET's Optical Interposer™ platform, creating a scalable and cost-optimized solution for AI clusters and hyperscale data centers [2][3] - The collaboration aims to address technical challenges in co-packaged optics, enabling efficient scaling into AI-driven markets [3][4] Market Opportunity - The AI Optical connectivity opportunity has generated over $50 billion in market value to date, with the emerging ELS market expected to contribute significantly to this figure [4] - The collaboration is projected to target an estimated annual ELS market opportunity exceeding $1 billion [4] Development Timeline - POET and Sivers plan to demonstrate early prototypes to customers in the first half of 2026, with production readiness anticipated by the end of 2026 [5]

Core Insights - Broadcom has launched its third-generation 200G per lane co-packaged optics (CPO) product line, demonstrating advancements in technology and ecosystem readiness for AI applications [1][4] - The company has established a comprehensive ecosystem of partners to support the deployment of its CPO technology, which is crucial for scaling AI infrastructure [5][7] Company Developments - Broadcom's leadership in CPO technology began with the introduction of the first-generation Tomahawk 4-Humboldt chipset in 2021, which set the foundation for subsequent innovations [2] - The second-generation Tomahawk 5-Bailly chipset became the first volume-production CPO solution, focusing on automated testing and scalable manufacturing processes [3] - The third-generation 200G/lane CPO technology is designed for high-radix scale-up and scale-out networks, addressing the demands of next-generation AI workloads [9][10] Ecosystem and Partnerships - Broadcom has announced significant partnerships with key industry players, including Corning, Delta Electronics, Foxconn Interconnect Technology, and Micas Networks, to enhance its CPO technology and support mass deployment [7][8] - These collaborations have led to advancements in fiber and connector technology, production of CPO Ethernet switches, and high-density CPO fiber cables, further solidifying the CPO ecosystem [7][8] Future Outlook - Broadcom is committed to developing a fourth-generation 400G/lane solution, continuing its leadership in delivering high bandwidth density and low power optical interconnects [4][6] - The company emphasizes the importance of open standards and system-level optimization to ensure the success and evolution of its CPO technology in hyperscale data centers [10]

Investment Rating - The report does not provide a specific investment rating for the industry or companies mentioned Core Insights - The Co-Packaged Optics (CPO) technology is expected to be a significant trend in the optical communication sector, potentially disrupting the existing value chain within the next 2-3 years [14][40] - The global switch market has shown robust growth, with a year-on-year increase of 20.1% in 2023, surpassing USD 40 billion, driven by the scaling of large language model training and data centers [20][21] - CPO shipments are projected to start with small volumes and dominate the 3.2T segment by 2028-2029, with penetration rates in the AI Data Center switch market expected to reach 2% in 2025, 22% in 2027, and 32% in 2030 [2][27] Summary by Sections CPO Technology and Market Outlook - NVIDIA is set to launch its first generation of CPO switch, Quantum 3400 X800, at the GPU Technology Conference (GTC) 2025, with mass production expected to begin in July 2025 [15][45] - Broadcom has introduced the Tomahawk 5 Bailly, a 51.2T Ethernet switch CPO product, which integrates advanced optical engines and is designed to operate at significantly lower power consumption [3][47] - The report estimates that CPO switch penetration in the AI Data Center switch market could reach 2% in 2025, 22% in 2027, and 32% in 2030, indicating a growing acceptance of this technology [27][28] Key Players and Developments - Major players in the CPO market include NVIDIA, Broadcom, and TSMC, with each company making significant advancements in CPO technology [3][41] - Chinese companies such as Suzhou TFC and Accelink are also positioned to benefit from the CPO trend, focusing on optical component manufacturing [4][56] - The report highlights that the integration of optical and electronic components through CPO technology can lead to reduced costs and power consumption, enhancing overall system performance [36][38] AI Applications and Market Dynamics - OpenAI's ChatGPT continues to lead in global AI applications, with a daily active user count fluctuating between 60-63 million, while DeepSeek has emerged as a leading app in China's generative AI market with a DAU of 49 million [5][62] - The competitive landscape in AI applications is evolving, with new models like OpenAI's GPT-4.5 and Alibaba's QwQ-32B being introduced, showcasing advancements in performance and efficiency [10][79] - The report notes that the global AI market is experiencing sustained growth, particularly in China, driven by increasing user engagement and the introduction of innovative AI solutions [60][67]