Galaxy Securities: AI computing power drives the outbreak of the silicon photonics market, and the tight supply-demand situation promotes the increase in the proportion of silicon photonics solutions.

Galaxy Securities' research report pointed out that the exponential growth in demand for AI large model training and inference, coupled with the rapid development of the optical module market and the deployment of all-optical network architecture by cloud vendors such as Google, will push the global shipment share of high-speed optical transceivers above 800G to increase from 19.5% in 2024 to over 60% in 2026. The production capacity of the traditional EML optical chip route is concentrated overseas, and restricted by indium phosphide materials, there will be a significant supply gap in the EML route in 2026. This gap will be mainly filled by silicon photonics solutions, with silicon photonics solutions accounting for over 50% in the 800G optical modules in 2026, and as high as 70%-80% in the 1.6T optical modules. In addition, upstream materials such as Faraday rotators and high-end CW light sources are also in short supply, further highlighting the strategic value of silicon photonics technology as a key path to alleviate supply chain pressure and improve integration.