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Localization Of High-end Optical Communication Devices

- Nov 08, 2018 -

China's optical communication industry chain can be divided into optical chips, optical devices/modules and optical network devices from upstream to downstream. The optical device in the industrial chain is the core of the optical module. It is the key device for converting electrical signals into optical signals or converting optical signals into electrical signals in optical communication systems. It requires external energy to drive work, and is the heart of optical transmission systems. The conversion capability and efficiency of the device determine the speed of communication.

Internet content service providers, communication service providers, and data center construction have brought about the demand for optical devices/modules; 4G wireless base station construction has also brought about an increase in the demand for optical modules, but this demand has now become saturated with With the advent of the 5G era, telecom base stations and data centers must use optical access, and the huge commercial 5G market once again drives the demand for optical devices/modules.

From the perspective of the industrial chain, in China, although the downstream optical network equipment vendors represented by Huawei, ZTE and Fiberhome Communications account for nearly half of the global market share, the upstream optical device/module companies occupy only a share of the global market. It is about 13%. Because of insufficient supply, many domestic network equipment vendors also rely on imported optical devices/modules from the United States or Japan, but imported optical devices have problems such as long ordering period, no obvious performance, and difficult after-sales service.

In recent years, with the rapid development of the Internet, users are increasingly demanding the network, which makes the traffic of the backbone of the telecommunications network grow at a rate of 50%-80% per year. At the same time, the explosive growth of the mobile Internet, The data center IP traffic has also increased sharply, and the 100G network has become a development trend. The market demand for the corresponding 100G optical modules has also increased rapidly. The current domestic market situation is in short supply.

In addition to the huge market demand, accelerating the advancement of our optoelectronic device technology and industry has become one of the major national strategies for the development of the information industry. At the beginning of this year, the Ministry of Industry and Information Technology issued the "China Optoelectronics Device Industry Technology Development Road 2018-2022" clearly put forward the development ideas and development goals of optical devices to ensure that the localization rate of low-end optoelectronic chips in 2022 exceeds 60%, high-end optoelectronic chips. The localization rate exceeded 20%. Leaders in training and emerging small and medium-sized enterprises, domestic enterprises accounted for more than 30% of the global optical communication device market share in 2022.

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