Demand and capacity shifts driven by high-speed optical modules, optical engines, and AI compute clusters.
Huiyu Ecology announced that its majority-owned subsidiary Wuhan Junheng Technology plans to build an R&D and production base in the Wuhan East Lake High-tech Development Zone, replacing and upgrading its existing annual capacity of 1.5 million units. Once completed, the project will add 2 million units of optical module capacity.
Hengtong Optic-Electric has released a private placement plan to raise up to CNY 6.636 billion for next-generation optical fiber R&D and production, construction of high-end optical new materials in Inner Mongolia, and advanced AI optical interconnect projects. The issuance will target no more than 35 investors.
Why we recommend it: The original article lists the investment directions, helping to understand the optical fiber leader's spending on AI optical interconnect
In an exclusive interview with C114, Photon Bridge's Chief Commercial Officer discusses the interconnect bandwidth pressure created by expanding AI compute clusters and the role of integrated photonics in breaking through optical module power and density limits, with a focus on the mass-production challenges of external light sources (ELS) and the Dutch integrated photonics ecosystem.
Under the theme "Strong Networks, Thriving Computing, Intelligent Ecosystem," PT Expo 2026 saw Hengtong Optic-Electric showcase optical fiber, optical interconnect and other optoelectronic solutions for AI computing, supporting the implementation of the "AI + Information and Communications" policy.
LightCounting's latest quarterly report says NPO dominated much of the discussion at the recent CIOE, much like the industry's enthusiasm for LPO a few years ago. However, sales of retimed pluggable optical modules continue to hit new highs, with Ethernet optical modules accounting for the majority of overall sales.
Why we recommend it: The original article contrasts sales data with the hype, helping to gauge the real pace of NPO and pluggable optical modules
Huawei and the Xi'an Institute of Optics and Precision Mechanics have signed a strategic cooperation agreement, making AI + optics a core focus, with Huawei pledging priority support in computing resources and AI teams. Earlier, on September 17, Huawei unveiled the Ascend 960 superpod using near-package optics (NPO) at Huawei Connect 2026, employing 5,500 in-house Hi-ONE optical engines.
Why we recommend it: The source text places the industry-academia partnership alongside the NPO superpod, showing Huawei's overall strategy in optical interconnects and AI optics
C114 and CIOE jointly held the AI + New Optical Fiber Applications Forum in Shenzhen on September 11. The event focused on high-density optical interconnects for AIDC, G.654.E backbone deployment and hollow-core fiber, with guests from the China Academy of Information and Communications Technology, the three major telecom operators and cloud providers in attendance.
C114 Insight notes that at CIOE 2026, optical module makers are competing on 1.6T, 3.2T and 6.4T speeds, while test and measurement is another crowded arena. Lianxun Instruments, which listed on the STAR Market this April, saw its shares reach a high of 2777.77 yuan within three months of its debut, making it the most expensive stock on the A-share market. The company supplies test equipment for optical modules and CPO optical engines.
Xili Photonics has completed a Pre-A round of financing worth over 100 million yuan, led by Futu Capital, with participation from the Shanghai Future Industry Fund and others. The funds will be used for R&D on thin-film lithium niobate photonic chips and system-on-chip integration technology, product iteration and the construction of a wafer production line.
The 27th CIOE drew nearly 190,000 visits over three days, up 32% year on year. NPO (near-package optics) products from major domestic optical module makers made a concentrated appearance. NPO moves the optical engine from the switch front panel to near the ASIC package without soldering it to the switch chip, balancing power consumption and serviceability.
Why we recommend it: The source text explains the trade-offs of NPO versus CPO and pluggables, helping to understand cloud vendors' selection logic
Zhang Dezhi, director of the optical access network center at China Telecom Research Institute, told the CIOE forum that the 50G-PON industry chain is fully mature and AI-based intrinsic intelligence in optical access networks is developing rapidly. He also outlined the path for upgrading the massive installed base of EPON terminals to 10 Gbit/s.
C114 reviews MicroLED optical interconnect solutions at CIOE 2026, where progress from chips to systems has become a representative of the slow-and-wide route for intelligent computing networks.
Speaking at the CIOE forum, Eoptolink's Zhang Jinshuang said that multiple high-speed optical interconnect technology paths will coexist, while pluggable optical modules remain the absolute mainstay.
YOFC's polarization-maintaining fiber, prized for its polarization stability, is used to connect external light sources with silicon photonic chips, bringing it into AI optical interconnect scenarios such as CPO.
Chengfeng Technology will exhibit nanoscale optical inspection solutions covering the entire optical communications industry chain at CIOE 2026.
Speaking at the CIOE forum, Baidu optical network architect Wan Yi said that Scale-Up and Scale-Out will evolve along two parallel main lines, with NPO being the first to achieve large-scale deployment.
Zhao Wenyu of the China Academy of Information and Communications Technology (CAICT) said at the CIOE forum that commercial deployment of NPO is imminent and that it is the preferred solution for current AI computing infrastructure.
Chen Qin of Alibaba Cloud outlined the evolution from 3.2T NPO to 6.4-12.8T UPO at the CIOE forum, saying that next year's optical module deployments will exceed the cumulative total of all previous years.
Huawei Fellow Luo Jun presented the AIDC network concept at the CIOE forum, proposing compute space data in space, compute ground data on the ground, and space-ground coordination.
H3C showcased the results of its 1.6T optical interconnect field tests and is developing NPO/CPO intelligent computing switching solutions.