Dongwu Securities: High-speed internet upgrade pushes demand for high-frequency testing and domestic substitution into a critical window

The Zhitong Finance App learned that Dongwu Securities released a research report saying that a vector network analyzer (VNA) is a type of test instrument used to analyze how radio frequency, microwave, and high-speed electrical signals are reflected, how much they are transmitted, how much they are lost, and how the phase changes in a device or transmission channel, and can fully describe the characteristics of high-speed signal channels. As high-speed connectivity enters the 224G era, supporting VNA test frequencies need to evolve from a few GHz to 26.5, 50, 67, or even 110 GHz, and demand for test equipment has risen sharply; the global VNA market is dominated by leading foreign investors. The global VNA market is dominated by leading foreign investors, and due to supply chain security considerations, domestic leaders have ushered in development opportunities.

The main views of Dongwu Securities are as follows:

Vector network analyzer: a universal testing platform for measuring electrical network parameters

VNA is a type of test instrument used to analyze how radio frequency, microwave, and high-speed electrical signals are reflected, transmitted, how much loss, and how the phase changes in a device or transmission channel. It can fully describe the characterization of high-speed signal channels. Engineers can use VNA to determine whether loss and distortion can be controlled at appropriate levels after high-speed signals pass through physical channels (PCBs, connectors, cables, etc.). VNA is widely used in the design, R&D and production of communications, aerospace, manufacturing and research institutes.

High-speed interconnection has entered the 224G era, and the volume and price of test equipment have risen sharply

As PCBs, connectors, packages, etc. are upgraded from simple electrical connectors to high-frequency transmission channels, the test frequency of supporting VNA needs to evolve from a few GHz to 26.5, 50, 67, or even 110 GHz. At the same time, due to the increase in speed, dielectric loss and conductor loss have become more serious, and the structure of the object being tested has become more complicated (such as the number of PCB layers has increased), the loss problem has become more difficult to control, and the signal distortion situation has become more serious. The number of test parameters and number of samples required by customers has increased exponentially. In this context, the demand for VNA equipment has risen sharply (comparable to the inflation logic of an optical sampling oscilloscope): (1) 112 Gbps PAM4 signals require a VNA with a frequency of 67 GHz. Currently, imported brands sell for about 1.5 million yuan/set (according to 4 ports). 224 Gbps PAM4 requires a VNA with a frequency of 110 GHz. Currently, imported brands sell for about 4.5 million yuan/set (customized 8 ports). (2) Customer requirements for product quality and accuracy have changed from sampling inspection to full inspection, and measurement parameters and quantity parameters have changed from sampling inspection to full inspection. The number of samples increased exponentially , the degree of customization of equipment has increased.

The three leading players in the US, Europe, and Japan dominate the market, and domestic manufacturers are entering at an accelerated pace

The global VNA market is dominated by leading foreign investors. In 2025, Schwarz, Rohde & Schwarz, Anritsu, and NI together account for about 70%. Due to the special nature of the scientific instrument circuit, it is difficult to expand production itself, making it difficult for leading foreign investors to meet incremental demand. According to the bank's industry chain research, the delivery cycle for network segments above 67 GHz frequency has been scheduled for more than one year. Due to the supply and demand gap and supply chain security considerations, domestic leaders with existing technology and channel reserves have ushered in development opportunities.

Investment advice

Recommended [Puyuan Precision]: The DNA5000/6000 series, which was publicly released in October 2025, supports a maximum measurement frequency of 26.5 GHz; [Ulide]: VNA4000 has a measurement frequency of 9 GHz. With R&D support, the bank expects products with higher parameters to be launched. It is recommended to pay attention to “Cosimo Electronics”: The 3674 series vector network analyzer was launched in May 2022, and the highest frequency of this series has reached 120 GHz; [Dingyang Technology]: At the end of 2022, the SNA6000A series vector network analyzer with a maximum measurement frequency of 26.5 GHz was launched, and this series of 50 GHz products was launched in December 2024. The bank expects higher parameter products to be publicly launched within the year.

Risk warning: the risk of fluctuating raw material prices, dependence on imports of key components, and the launch of high-end new products falling short of expectations