Recently, Zhongji Xuchuang announced that it plans to transfer 10.47% of Zhongshi Technology's shares in an agreement of 1,747 billion yuan, which is another example of optical module companies moving upstream in the industrial chain. The reporter combed through and found that domestic and foreign optical communication companies are generally speeding up the upstream layout of the industrial chain along the industrial route of optical components, optical chips, epitaxial films, substrate materials, and high-purity metal raw materials. In an interview with reporters, some industry insiders said that the direct reason optical communication companies are extending their layout upstream is that with the rapid growth in demand for optical modules in intelligent computing centers and the rapid iteration of technology, optical chips have become a bottleneck in production capacity in the entire industry chain, and also directly determine optical module performance. The essence of the upstream layout is to lock in chip production capacity and shorten the R&D cycle to guarantee delivery capacity. From the perspective of industrial chain value, as optical modules are iterated to 800G, 1.6T, or even 3.2T, the cost share of optical chips rises rapidly, and profits are rapidly concentrated on the chip link in the middle of the industrial chain, and the upstream layout and IDM model have become a moat for building long-term competitiveness.

Recently, Zhongji Xuchuang announced that it plans to transfer 10.47% of Zhongshi Technology's shares in an agreement of 1,747 billion yuan, which is another example of optical module companies moving upstream in the industrial chain. The reporter combed through and found that domestic and foreign optical communication companies are generally speeding up the upstream layout of the industrial chain along the industrial route of optical components, optical chips, epitaxial films, substrate materials, and high-purity metal raw materials. In an interview with reporters, some industry insiders said that the direct reason optical communication companies are extending their layout upstream is that with the rapid growth in demand for optical modules in intelligent computing centers and the rapid iteration of technology, optical chips have become a bottleneck in production capacity in the entire industry chain, and also directly determine optical module performance. The essence of the upstream layout is to lock in chip production capacity and shorten the R&D cycle to guarantee delivery capacity. From the perspective of industrial chain value, as optical modules are iterated to 800G, 1.6T, or even 3.2T, the cost share of optical chips rises rapidly, and profits are rapidly concentrated on the chip link in the middle of the industrial chain, and the upstream layout and IDM model have become a moat for building long-term competitiveness.