At the 27th China International Optoelectronics Exhibition (CIOE), which opened on September 9th in Shenzhen, special attention is being paid to the new cycle of optical communication development triggered by the expansion of infrastructure for AI computing.
As artificial intelligence server clusters grow, data exchange between GPUs, servers, and data centers places increasing strain on traditional electrical connections in terms of bandwidth, power consumption, and distance. This highlights the growing importance of high-speed optical links.
Standard medium and low-speed chips can no longer handle the demands of massive clusters. The exhibition will feature optical modules at speeds of 400G, 800G, and 1.6T, as well as new approaches such as LPO, NPO, and CPO.
Chinese module manufacturers are actively implementing innovations. Eoptolink offers a full range from 400G to 1.6T, based on silicon photonics and thin-film lithium niobate, as well as 6.4T NPO modules, the industry's first 12.8T XPO module, and 1.6T DR4 OSFP components.
Accelink covers needs in the 400G, 800G, and 1.6T ranges, offering low-power options and coherent modules for data center interconnects. HGTECH demonstrates large-scale 800G modules, scaling up 1.6T production, and introduced a 3.2T silicon photonics-based NPO module approved by a major client.
The central industry question is how to keep light signals as close as possible to the computing blocks. Traditional pluggable modules use printed circuit boards, leading to increased losses and power consumption as speeds increase. LPO technology reduces energy consumption and costs by simplifying or eliminating DSP. NPO brings optical engines closer to switching chips, while CPO integrates optics directly with the switch ASIC.
Regarding copper connections, Luxshare reports developing high-speed copper backplanes for NVIDIA's next-generation Rubin platform, planning initial deliveries to customers by the end of 2027.
Optical fiber is another critical segment. Among the exhibitors are leading cable manufacturers like YOFC, which is working on hollow-core fiber to achieve ultra-low latency after supplying over 10,000 kilometers of fiber in commercial and pilot projects. Hengtong and ZTT are also participating.
Research firm LightCounting predicts that by 2026, 800G and 1.6T speed modules will account for approximately $14.6 billion in the market, representing about 64% of the entire optical module market. This confirms that AI is driving the development of optical communication towards higher speeds, lower power consumption, and shorter electrical connections.