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.

Summary of Key Points from Conference Call Records Industry Overview - The focus is on the **optical switch industry** and its applications in data centers, particularly in relation to AI training and processing efficiency [1][2]. Core Insights and Arguments 1. **Dynamic Patch Panel**: Optical switches simplify operations through dynamic patch panels, allowing for input and output without physical changes to fiber optics, enhancing operational efficiency in data centers [1][2]. 2. **Rapid Fault Switching**: Optical switches can transfer signals from a faulty switch to a backup switch within seconds, significantly reducing downtime in data center operations [1][2]. 3. **Programmable Network Architecture**: The ability to reroute optical signals allows for flexible network topologies, improving AI training and inference efficiency [1][2]. 4. **Cost and Energy Efficiency**: Optical switches can replace multiple electrical switches, offering a 40% reduction in energy consumption and a 30% decrease in costs, as demonstrated by Google [1][2]. 5. **Silicon Photonic Waveguide Technology**: This technology provides low-latency interconnect solutions suitable for direct GPU connections, enhancing short-distance data throughput [1][2]. 6. **TSMC's Plans**: TSMC aims to mass-produce a 6.4T optical engine by the second half of 2026, focusing on co-packaged optics (CPO) technology [1][5]. 7. **Advancements in CPU Switch Technology**: Significant progress has been made in CPU switch technology, particularly in optical co-packaging, which meets the high bandwidth and low power consumption needs of AI data centers [3][4]. 8. **Market Demand Growth**: The demand for efficient interconnect solutions is increasing with the growth of the AI industry, with major North American cloud providers showing significant interest [4]. Competitive Landscape 1. **Broadcom and Marvell**: Broadcom is a key player in promoting CPU switches, with its TH4 and TH5 solutions utilizing advanced packaging technologies. Marvell competes with a 6.4T silicon photonic engine [6]. 2. **Innovations from Other Firms**: Companies like Rendernous and Cisco are exploring new solutions, though some face challenges due to high costs or reliance on electrical connections [7]. Opportunities for Domestic Manufacturers - Domestic firms can engage in module manufacturing, connector development, and high-value solution provision, particularly in creating ultra-compact connectors for AI data centers [8]. Future Trends in the CPU Supply Chain - CPO technology is expected to be a significant trend, with ongoing innovations and optimizations anticipated in the coming year, despite potential delays in large-scale production [9].

Summary of the Conference Call for Ruijie Networks Industry and Company Overview - **Company**: Ruijie Networks - **Focus**: Transitioning strategic focus towards the data center market, particularly in the internet sector, while facing potential declines in the operator market due to product strategy adjustments [2][6] Key Points and Arguments - **Market Growth**: The data center market is expected to maintain growth, with the overall data center market growing over 50% as per IDC reports [4] - **Product Segmentation**: - SMB products account for approximately 70% of overseas business - Campus and enterprise network products make up about 20% [2] - **Delivery Acceleration**: The acceleration in deliveries during Q2 2025 is attributed to the execution of contracts with ByteDance and Tencent from Q4 2024, rather than new capital expenditures [2][6] - **Profit Margins**: - The gross margin for 400G PH5 products is expected to return to 15%-20% - The overall gross margin for all internet data center products is around 20%-21% [2][9] - **AI and Cloud Computing**: The company is actively participating in the trend of increased computing power demand driven by domestic cloud vendors' self-developed chip architectures, focusing on AI Fabric and Scale-up solutions [2][10] Financial Performance - **Q1-Q2 2025 Performance**: - Data center switching business shows rapid growth - Network security business declined nearly 50% YoY in Q1, with a reduced decline in Q2 - Cloud desktop business also faced a decline, influenced by market conditions [4] - **Market Segmentation**: - Internet market growth exceeded 30% in Q1 and continued in Q2 - SMB market showed double-digit growth in H1 but slowed down due to international conditions [4] Future Outlook - **2025 Projections**: - The data center market is expected to maintain appropriate growth rates - The operator market is anticipated to decline due to strategic product focus changes [6] - **Product Development**: - The company has completed B20 adaptation and established interconnectivity with Ethernet switching devices in overseas data centers [12] - New product iterations are expected to support the next generation TH76, with stable pricing for white-box products [9] Additional Insights - **JDM Model**: The company has secured independent bids for intelligent computing R&D projects with major cloud vendors like Alibaba, Tencent, and ByteDance, indicating a strong market position [3][13] - **Product Structure**: - Current product shipment volume ranks 400G first, followed by 200G and 100G, with 800G being less common [14] - The transition from 400G to 800G is expected to accelerate significantly by mid-2026 [14] - **LPO Modules**: The company is expanding production capacity for LPO modules, with expected improvements by mid-2025 [15][16] Conclusion Ruijie Networks is strategically positioning itself in the growing data center market while navigating challenges in the operator sector. The focus on AI-driven solutions and partnerships with major cloud vendors highlights its commitment to innovation and market leadership. The company anticipates stable growth in its core business areas while adapting to emerging trends in technology and market demands.

中际旭创 20250406 摘要 Q&A 关税政策对中际旭创的影响及公司应对策略是什么？ 公司目前正在根据相关的关税政策进行研究，特别是评估产品中镁含量是否超 过 20%。如果符合要求，公司将提交关税豁免申请。公司也在密切关注海外客 户的反应，目前客户没有调整需求或改变现有贸易条款。此外，公司已具备在 泰国厂全面生产和出货光伏产品的能力。 这种情况是不成立的。即使将产品从泰国运到新加坡，再由新加坡出口到美国， 原产地仍然是泰国。关税是根据原产地征收的，而不是根据中转地。因此，通 过新加坡进行转口贸易并不能规避关税。 • 中际旭创已具备泰国工厂全面生产和出货光伏产品的能力，有效规避美国 加征关税对上游高端光芯片采购的影响，所有芯片可直接发往泰国工厂生 产。 • 尽管芯片供应整体仍然紧张，但随着硅光产品产量逐步提升，预计 2025 年 二季度起供应情况将有所缓解，下半年 EML 芯片的紧张状况有望进一步改 善。 • 中际旭创的 1.6T 产品预计在 2025 年二季度出货量将高于一季度，但大规 模放量预计在下半年。整体需求相较去年下半年有所减少，主要原因是客 户需求有所延迟。 • 针对进口芯片用于海外客户，中际旭 ...