Core Insights - The rapid growth of AI applications, such as large model training and smart driving, is driving the demand for ultra-high bandwidth, low latency, and high reliability in network transmission solutions, leading to the emergence of "all-optical capacity" as a core infrastructure for the digital economy [1][2][3] Industry Trends - The demand for computing power is expected to grow significantly, with China's intelligent computing power projected to reach 1,037.3 EFLOPS by 2025, a 43% increase, and 2,782 EFLOPS by 2028, with a compound annual growth rate exceeding 40% [2] - The integration of optical technology into the entire computing power chain is essential to overcome traditional network limitations in bandwidth, latency, and reliability [2][3] Company Developments - Major companies like China Unicom and China Mobile are actively enhancing their optical networks to support low-latency computing, with initiatives such as the "AINet" and "Jiuzhou" projects aimed at improving capacity and coverage [4][5] - Huawei is promoting the "Optical Intelligence Integration" concept, focusing on building a millisecond-level capacity foundation through advanced optical network technologies [5] Market Performance - The optical module sector is experiencing significant growth, with companies like Zhongji Xuchuang reporting a 46% year-on-year increase in optical communication module sales, driven by strong demand for high-end products [6] - NewEase achieved remarkable revenue growth of 282.64% year-on-year in the first half of 2025, indicating a robust market for optical modules [7]

Core Insights - The 2025 China International Information and Communication Exhibition highlighted the critical phase of deep integration between all-optical capacity and computing networks, emphasizing "low latency, high reliability, and wide adaptability" as industry consensus [1][2] - The demand for computing power is surging due to various digital applications, making all-optical capacity a fundamental support for the development of the digital economy [1] - The goal of current all-optical capacity development is to promote continuous innovation and facilitate the deep integration of computing power across industries [1] Industry Developments - The three major telecom operators in China are transitioning from "network deployment" to "network optimization," with China Unicom developing "Computing Power Intelligent Network AINet," China Mobile upgrading its "Jiuzhou" computing optical network, and China Telecom advancing its All-Optical Network 3.0 [2] - China Telecom's All-Optical Network 3.0 strategy aims for deep integration of optical networks and cloud resources, creating an efficient and intensive all-optical connection base for computing, storage, and transport resources [2] Technological Innovations - "Optical Intelligence Dual Empowerment" is identified as a key direction for overcoming the bottlenecks in the integration of computing and networking [2] - Huawei's AI-OTN focuses on "Optical Intelligence Integration" to establish a millisecond-level capacity base, enabling on-demand access to computing power and integrating intelligent technologies into optical networks for advanced self-intelligence evolution [2] Reports and Standards - The China Academy of Information and Communications Technology released several reports, including the "Computing Network Carrying Capacity Index Assessment Report (2025)" and the "High-Quality All-Optical Computing Power Dedicated Line Research Report (2025)" [3] - The reports emphasize actions to promote millisecond interconnection of computing centers, millisecond access to computing resources, and millisecond availability of computing applications, enhancing the end-to-end connectivity capabilities of networks [3]

Core Insights - The development of all-optical capacity networks is crucial for the digital economy, enabling efficient access to computing power and driving digital transformation [1][2] - The China Academy of Information and Communications Technology (CAICT) emphasizes the importance of all-optical capacity as a key component for high-quality development in computing infrastructure [1][2] Industry Developments - The forum held by CAICT discussed the construction of all-optical capacity networks to support millisecond-level computing access across various industries [1][2] - Recommendations were made to enhance capacity planning, strengthen network technology, and accelerate the integration of computing and networking services [2] Technological Advancements - Telecom companies are leading the construction of all-optical capacity networks, with China Unicom and China Mobile outlining their strategies to enhance computing capabilities and expand application scenarios [4] - Internet companies are also actively developing solutions, such as edge GPU computing pools, to leverage all-optical networks for cloud computing services [4] Market Opportunities - The demand for all-optical capacity is driving companies in the optical module sector, such as Zhongji Xuchuang and NewEase, to accelerate the development of high-speed optical modules [5] - Companies like Longfei Fiber and Hengtong Optics are focusing on new fiber technologies to support long-distance, high-capacity transmission [5] Business Model Transformation - The evolution of all-optical capacity is not just a technological upgrade but also a transformation in business models, making computing power as accessible as utilities like water and electricity [6]