2025-06-10 15:26Summary of Conference Call Records Industry Overview - The conference call focuses on the optical module industry, particularly the demand for 800G optical modules, which is expected to reach 30 million units by 2026, with some forecasts suggesting demand could double to 35-40 million units [1][7][6]. Key Insights and Arguments - Market Demand: The anticipated demand for 800G optical modules is optimistic, with significant contributions from major tech companies like Meta, Google, Microsoft, and Amazon, which are expected to upgrade their traditional CPU servers from 400G to 800G between 2025 and 2026 [1][4]. - Revenue Growth: The overall revenue for optical modules is projected to grow by approximately 62% in Q1 2025, with profits expected to double, indicating a strong performance outlook for the industry [20]. - Supply Chain Dynamics: New suppliers are being integrated into the supply chain, with companies like Cambridge Technology starting to deliver 800G optical modules in bulk to Cisco [7][4]. - Core Suppliers: Key suppliers in the optical module supply chain include SMIC, NewEase, Cambridge Technology, and Huayun Ecology, which play crucial roles in upstream material supply [1][9]. - Silicon Photonics Demand: There is a strong demand for silicon photonics, particularly for 800G products, with a shortage of EML (Electro-Absorption Modulated Laser) starting in the second half of 2023 [15][8]. Additional Important Content - Stock Market Performance: Companies that exceeded earnings expectations, such as NewEase and Huayun, have seen stock price increases of around 20%, while leading companies like Xuchuang have experienced a decline of about 12% [12][5]. - Investment Recommendations: Investors are advised to focus on core suppliers like SMIC and NewEase, leading domestic companies like Huagong Technology and LianTe Technology, and second-tier leaders that can secure core customers [13][23]. - Future Trends: The optical module market is expected to maintain high growth rates, with leading companies projected to achieve growth rates of 30%-40% despite potential slowdowns [20][19]. Conclusion The optical module industry is poised for significant growth driven by increasing demand from major tech companies and advancements in technology. Key suppliers and emerging companies are expected to play vital roles in meeting this demand, making them attractive investment opportunities.