Guosheng Securities: PIC reshapes the pattern of the optoelectronic communication industry, expected to open up the full scenario of optical interconnection space.

Guosheng Securities released a research report stating that PIC is the core of silicon light, which will focus on industrial value towards design and process, and is expected to reconstruct the profit distribution pattern. In terms of application scenarios, PIC promotes the scale-out scenario of optical interconnection from data centers, further penetrating into the scale-up scenario, opening up a larger market from medium to long distances to short distances, from device level to chip level. Currently benefiting from the demand for optical communication by AI, the demand for optical modules/engines has increased from the past level of millions to the level of tens of millions, and is expected to reach the level of billions in the future. From the perspective of production capacity/cost/power consumption, the industry chain needs a new form of production capacity to meet the increasingly growing demand.