Driven by the explosive growth of AI computing power and the large-scale application of 5G, optical modules, as a core component of communication infrastructure, are entering a critical window of opportunity for domestic substitution. 6T products enter commercial mass production. The global optical module market is forecast to grow 60% in 2026 and reach nearly $60 billion by 2031, driven by AI demand. And the combined market capitalisation of the three firms recently eclipsed that of baijiu distiller Kweichow Moutai – the long-standing champion of. The AI computing boom has created a severe shortage of Faraday rotators, tiny but essential upstream components for optical modules, with demand more than double the supply. Production of Faraday rotators is complex, requiring continuously running high-temperature furnaces, and restarts can take up. Technological Evolution: From Following to Leading China's optical module industry is transitioning from "following" to "running alongside" and even "leading" in certain areas. Currently, 800G optical module technology has achieved large-scale commercial use, with several Chinese companies.
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