Key Points
- Market surge: Optical-module index has more than doubled year-to-date and the sector’s combined free-float market cap topped ¥1.1万亿元 RMB (~$154 billion).
- CIOE spotlight: The expo hosted 3,800+ companies and >b>70,000 visitors on opening day (≈+17% YoY); vendors like Xinyìshèng (新易盛), Zhongji Xuchuang (中际旭创) and Guāngxùn Kējì (光迅科技) showcased 1.6T prototypes with tightened on-site security.
- Commercialization in 2025: Industry views 2025 as the takeoff year for 1.6T modules; leading vendors have begun shipping 1.6T mainly to overseas AI customers while China’s domestic shipments still focus on 400G and 800G.
- Tech and supply dynamics: Multiple technical routes (notably EML and silicon photonics) are progressing, but suppliers face a severe capacity shortage for key chips; note also that copper-cable solutions are >50% cheaper than fiber alternatives, affecting cost trade-offs.
1.6T optical modules are the focal point of CIOE 2025 conversations and industry moves.
Sector surge: why the optical-module market is heating up
The optical-module index has more than doubled year-to-date.
The combined free-float market capitalization of listed companies in the sector has just surpassed ¥1.1万亿元 RMB ($154 billion USD, approx.).
As a core infrastructure element for the artificial intelligence (AI) industry, the optical-module sector has become one of this year’s hottest plays.
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CIOE scene: top brands, tight security and the 1.6T demo race
On September 11 at the 26th China International Optoelectronic Exposition (CIOE), crowds packed the halls.
Leading vendors including Xinyisheng (Xinyìshèng 新易盛), Zhongji Xuchuang (Zhōngjì Xùchuàng 中际旭创), and Guangxun Technology (Guāngxùn Kējì 光迅科技) were on-site in force.
Many booths displayed advanced 1.6T optical-module samples, with tightened on-site security for higher-end products.
Some displays prohibited photography or required appointments, and many visitors took notes by hand.
Commercialization timeline: 2025 as the takeoff year
Industry participants view 2025 as the commercial takeoff year for 1.6T modules.
Leading vendors have begun shipping 1.6T products, primarily to overseas customers.
For China’s domestic market, 400G and 800G modules remain the main shipment drivers while the local supply chain expands capacity.
Suppliers are investing in advanced technology routes such as silicon photonics.
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Who showed what at CIOE — big names and challengers
Organizers said the event gathered more than 3,800 optoelectronics companies and welcomed over 70,000 visitors on opening day—up about 17% from last year.
Exhibitors such as Xinyìshèng (新易盛), Guāngxùn Kējì (光迅科技), Lián Tè Kējì (Liántè Kējì 联特科技), Solis Optoelectronics (索尔思光电 Suǒ’ěrsī Guāngdiàn) and Gaoyi (高意) displayed 1.6T prototypes.
Zhongji Xuchuang (中际旭创) was represented by its domestic subsidiary Zhìhé Guāngtōng (智禾光通), showing multiple 400G/800G high-speed modules for China’s market.
Modules operating at 1.6 terabits per second (1.6T) are the current high-end mainstream technology for ultra-large data centers, AI compute clusters and supercomputing centers.
Many vendors began work on 1.6T modules as early as 2023, but market demand only began to ramp up recently.
For now, many companies are still shipping mainly 800G modules, with 1.6T shipments focused on dedicated AI compute centers and foreign customers.
Smaller and newer players are preparing to follow the leaders into the 1.6T race.
Dekoli (德科立 Dékēlì) showed 200G, 400G and 800G products and said it is accelerating development on 1.6T ultra-high-speed modules.
Public companies are also using acquisitions to enter or strengthen positions in the optical-module market.
Index-maker Dongshan Precision (Dōngshān Jīngmì 东山精密) purchased Solis Optoelectronics and showcased 1.6T test results.
Zhaochi (Zhàochí 兆驰股份) — which acquired a target in 2023 — displayed 400G–800G modules through its subsidiary Zhaochi Ruigu (兆驰瑞谷).
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Multiple technical routes: EML, silicon photonics and more
AI-driven compute demand has shortened the product iteration cycle from roughly 3–4 years to about 2–3 years, according to industry forecasts.
Executives at Guāngxùn Kējì (光迅科技) said the smart-compute era has sped up module refresh rates and that multiple technical routes are being developed in parallel.
Key technical options include electro-absorption modulated lasers (EML) and silicon photonics.
In the module supply chain, EML chips are still viewed as core components for high-speed, long-reach optical links.
Historically dominated by overseas makers, EML technology has seen domestic breakthroughs at mid- and low-speeds.
Chinese vendors are now pushing into silicon photonics as well.
Yuanjie Technology (Yuánjié Kējì 源杰科技) told researchers that its 100G PAM4 EML product has passed customer validation and the company aims for volume shipments.
Its 200G PAM4 EML product has completed development and is in customer promotion.
Guāngxùn said it launched silicon-photonics modules in 2023 and expects silicon photonics to scale more easily than some laser-based solutions.
Wuhan Yilutong Technology (Wǔhàn Yìlùtōng 武汉驿路通) vice president Gāo Dìngshān (郜定山) highlighted silicon photonics’ power-efficiency advantages for supercomputing customers.
Gāo noted benefits including leveraging semiconductor foundry processes for large-scale production, cost-down potential, improved integration and reduced transmission loss.
He also warned the commercialization path faces challenges: architecture design maturity, fragmented standards, demanding packaging quality control, and material compatibility issues.
Other domestic R&D lines are also progressing.
Shenzhen Deep Optical Valley Technology (Shēn Guānggǔ Kējì 深光谷科技) showcased glass-based dual-four-core 3D waveguide chips for 800G/1.6T multi-core modules to ensure long-distance, high-bandwidth transmission quality.
Long-term fiber manufacturer Changfei Optical Fiber (Chángfēi Guāngxiān 长飞光纤) displayed 19-core fiber preforms and other multi-core products that can multiply transmission capacity beyond single-core limits.
Changxin Bochuang (Chángxīn Bóchuàng 长芯博创) showed complementary optical-cable and copper-cable products.
On cost, show-floor staff said 1.6T modules typically use optical cable solutions, but copper-cable solutions are more than 50% cheaper than fiber-based options and still hold an important market position.
International suppliers such as 3M also presented copper-cable schemes and EBO expanded-beam fiber connectors.
Supply chain dynamics: hiring, capacity and price pressure
Investment firms are optimistic about the optical-module cycle.
Citigroup recently raised target prices for Zhongji Xuchuang (中际旭创), Xinyìshèng (新易盛) and Tianfu Communication (Tiān fú Tōngxìn 天孚通信).
A Guangfa Securities (Guǎngfā Zhèngquàn 广发证券) report noted that AI-chain strength in the second half of 2025 should continue boosting revenue, profits and margins for relevant companies.
The industry is accelerating capacity expansions.
Many booths included hiring notices for core technical roles—product managers, device R&D supervisors and similar positions—often asking for two or more years of module-related experience.
Some exhibitors said they cut staff during last year’s downturn but are now rehiring.
While many vendors describe current demand as “red-hot,” some expressed uncertainty about how long the boom will last.
Leading manufacturers say their expansion plans are proceeding, though newer entrants say expansion is difficult because procurement costs for equipment and materials are high.
Zhongji Xuchuang executives said demand for modules is outpacing supply for raw materials—key upstream items such as optical and electronic chips remain tight.
Upstream vendors need to prepare more capacity, and Zhongji Xuchuang said it will use scale purchasing to balance raw-material cost pressure and remains confident about sustaining gross-margin improvements.
“The biggest bottleneck today is still severe capacity shortage; this year’s capacity has largely been absorbed by existing major customers,” a Cambridge Technology (Jiànqiáo Kējì 剑桥科技) executive said in a research interview.
The company plans to accelerate capacity expansion and expects capacity build-out to be its top priority through this year and next.
Xinyìshèng managers said they keep long-term partnerships with key suppliers and run long-horizon material forecasting and stocking based on orders and market demand.
They said their supply chain is functioning normally.
Guāngxùn Kējì said key material prices are driven by supply-demand imbalances and that pre-stocking critical items is the main way to relieve supply pressure.
What to watch next — quick checklist for investors and builders
- Commercial shipments of 1.6T modules and which vendors secure the earliest scale wins in AI datacenter deployments.
- Progress and cost trajectories for silicon photonics vs. EML-based solutions, especially in packaging and material compatibility.
- Upstream capacity additions for optical chips and electronic ICs—whether supplier ramp rates can keep pace with module demand.
Actionable takeaways for investors, founders and engineers
- Investors: Watch margin trends and raw-material supply dynamics for listed names such as Xinyìshèng, Zhongji Xuchuang and Guāngxùn Kējì before assuming long-term scale wins.
- Founders: Consider complementary plays in packaging, test equipment and multi-core fiber manufacturing where capacity gaps remain.
- Engineers and buyers: Track silicon-photonics packaging progress and evaluate power-efficiency tradeoffs for AI compute workloads.
Linking opportunities (internal & external)
- Company profile pages for Xinyìshèng, Zhongji Xuchuang, Guāngxùn Kējì and other vendors mentioned.
- Event coverage or past CIOE write-ups to provide historical context on optics and photonics trade shows.
- Technical explainers on EML, PAM4 signaling, and silicon photonics for readers who want deeper technical background.
SEO & content notes
Include 1.6T optical modules prominently in H1/H2 tags, meta description and opening paragraph for best search relevance.
Use sentence-level bold and italic highlights to help skim-readers and featured-snippet crawlers find key points fast.
Keep internal links to vendor pages, technical explainers and the CIOE event to increase topical authority.
Use this article’s clear bullet lists and short paragraphs to appeal to both human readers and search engines.
Final note: track commercial adoption of 1.6T modules closely as the balance between silicon photonics and EML-based routes will shape winners and losers in the next product cycle.
