Core Insights - The global computing power is expected to increase by 100,000 times by 2035, with data becoming the "new fuel" for AI, leading to a 500-fold increase in AI storage demand [1][2] - Chinese companies are dominating the midstream market of the optical module industry, with key players like Zhongji Xuchuang and Xinyi Sheng ranking among the top three globally [5] Industry Overview - The optical module industry is experiencing explosive growth due to the surge in global computing power demand, driven by applications in smart driving and industrial AI [1] - Huawei's report indicates that the number of connected devices will expand from 9 billion to 900 billion by 2035, marking a significant shift from mobile internet to intelligent agent internet [2] Company Performance - Zhongji Xuchuang reported a revenue of 14.789 billion yuan in the first half of 2025, a year-on-year increase of 36.95%, with a net profit of 3.995 billion yuan, up 69.4% [3] - Xinyi Sheng demonstrated explosive growth with a revenue of 10.437 billion yuan, a 282.64% increase year-on-year, and a net profit of 3.942 billion yuan, up 355.68% [4] - Tianfu Communication achieved a revenue of 2.456 billion yuan, a 57.8% increase year-on-year, with a 91% growth in active optical device business [4] Technological Advancements - The optical module technology is rapidly evolving along the paths of rate iteration, material innovation, and packaging breakthroughs [6] - The transition from 800G to 1.6T optical modules is becoming a mainstream trend, with significant increases in shipment volumes expected [6][7] - Innovations in silicon photonics are driving the commercialization of high-speed optical modules, with cost advantages over traditional solutions [8] Market Dynamics - The CPO (Co-Packaged Optics) technology is anticipated to be commercially available by 2026, significantly reducing energy consumption while enhancing bandwidth density [9] - The competitive landscape shows that Chinese manufacturers have established a strong foothold in the global midstream market, leveraging technological breakthroughs and financial resilience [3][5]