Galaxy Securities: AI computing power drives the explosion of the silicon photonics market, with tight supply and demand dynamics pushing the proportion of silicon photonics solutions higher

Mars Finance News: On April 15, it was reported that Galaxy Securities’ research report pointed out that the exponential growth in AI large model training and inference demands is rapidly developing the optical module market. Coupled with cloud providers like Google deploying all-optical network architectures, the global shipment proportion of high-speed optical transceiver modules above 800G is expected to rise from 19.5% in 2024 to over 60% by 2026.
Capacity for traditional EML optical chip routes is concentrated overseas and limited by indium phosphide materials; by 2026, there will be a significant supply gap in the EML route.
This gap will mainly be filled by silicon photonics solutions, which are expected to account for over 50% of 800G optical modules in 2026, and in 1.6T optical modules, the proportion could reach 70%–80%.
Additionally, upstream materials such as Faraday rotator plates and high-end CW light sources are also in short supply, further highlighting the strategic value of silicon photonics technology as a key pathway to alleviate supply chain pressures and enhance integration. (Broad Perspective Observation)