Core Viewpoint - The article emphasizes the rising importance of Digital Signal Processors (DSPs) in reshaping the future of optical communication, particularly in the context of AI-driven data centers and the transition from 100G to higher bandwidths like 1.6T [1][3]. Group 1: Importance of DSPs - DSPs are critical components in modern optical networks, converting analog signals to digital and encoding data for high-speed transmission using advanced modulation techniques [3]. - The demand for PAM4 DSPs is significantly increasing due to the construction of AI infrastructure, with projections indicating that the market for PAM4 and coherent DSPs will exceed $4 billion, maintaining a strong CAGR [3][19]. Group 2: Market Leaders - Marvell is a dual champion in the PAM4 and coherent DSP fields, benefiting from its strategic acquisition of Inphi, which expanded its product offerings in high-speed connectivity [5][7]. - Broadcom holds a strong market position in PAM4 DSPs, known for its low power consumption and high performance, particularly in AI clusters and large-scale data centers [11][12]. - Credo, established in 2008, is recognized for its low-power, high-cost-performance PAM4 DSPs, covering a range from 50G to 1.6T [12][13]. Group 3: Emerging Players - Alphawave Semi has transitioned from being known for high-speed SerDes IP to becoming a silicon product supplier, targeting high-speed PAM4 and coherent DSP markets with its 3nm technology [14]. - Retym, founded in 2021, focuses on programmable coherent DSP solutions for cloud and AI infrastructure, aiming to disrupt traditional suppliers with its innovative designs [17][18]. Group 4: Trends and Observations - The article notes that the connection bottleneck is becoming a core constraint in AI systems, highlighting the increasing significance of DSPs [19]. - There is a trend towards energy optimization in DSPs, with advanced process nodes like 3nm showing significant power advantages in 800G/1.6T modules [19]. - The future of DSP products is expected to integrate various functionalities, moving away from traditional discrete solutions [19]. - The competitive landscape is shifting, with traditional players facing complex relationships with customers, while new entrants like Retym and Alphawave promote open collaboration [19].