GF Securities: The risk of the optical interconnection industry chain policy is further reduced, and it is optimistic that leading domestic laser companies will break through overseas

The Zhitong Finance App learned that GF Securities released a research report stating that it continues to be optimistic about leading companies in the optical interconnection sector. In mid-October, the US OCP conference is expected to continue to release the advantages of cloud companies' self-development industry chains, compounding the good growth expectations of leading companies in the three quarterly reports. The bank believes that the optical interconnect sector will continue to perform well in October, focusing on leading companies with large market capitalization and small market capitalization flexible direction supported by performance.

The main views of GF Securities are as follows:

Policy risks in the optical module industry have been further reduced

Recently, many industry organizations have expressed their views on the FCC's expansion of control to the component level, and there are many opponents. ITI (Information Technology Industry Council) clearly opposes including optical modules in the Covered List; TIA Telecommunications Industry Association (TIA) opposes the FCC expanding the scope of covered list control to components, believing that if extended broadly, it would disrupt the global communications supply chain and create compliance uncertainty; CTA Consumer Technology Association ( (Consumer Technology Association) stated that FCC regulations must adhere to risk orientation and precise targeting; they cannot be one-size-fits-all; parts must not be included in restricted lists at will. Furthermore, the US government has recently continued its policy trend of supporting speeding up AI construction and expressing concerns about slowing down AI construction in the US on the question of whether cutting-edge AI models should be put on the brakes. This policy trend has also made government departments more cautious when introducing restrictive policies in some fields.

Upstream materials are still in short supply, and leading domestic laser manufacturers are expected to break through overseas markets with a global layout

If policy risks in the optical module sector are reduced, upstream key components will also benefit, especially leading domestic companies. Taking lasers as an example, (1) the current expansion progress of overseas laser companies is far below the increase in demand, and there is a huge gap in the supply of high-end lasers in the next few years; (2) leading domestic companies are strengthening their global layout to reduce potential future supply risks; (3) North American CSP values supply chain risks and will make various deductions and responses. The current cooperation between CSP and leading Chinese laser companies shows that CSP determines that supply chain risks are generally manageable.

Risk Alerts

Risk of AI infrastructure construction falling short of expectations; risk of AI application development falling short of expectations; risk of changes in import and export policies in the AI field; risk of reduced international cooperation.