Optical communication industry chain

China is the world's largest optical communication market, but the competitive strength of the industrial chain varies greatly, with a top heavy and foot light. In the field of downstream optical communication system equipment, Huawei, ZTE, FiberHome, and others have become industry leaders, occupying half of the world's territory; In the field of midstream optical communication devices, China accounts for approximately three parts of the global market; In the field of upstream optical chips and electronic chips, it accounts for less than 10% of the global market share.

Optical chips account for the largest proportion of the cost of optical devices and are the most crucial link. Taking optical modules as an example, they are composed of device components, functional circuits, and optical interfaces. In terms of cost, device components account for more than 70% of the cost of optical modules. Among device components, TOSA for optical emission and ROSA for optical reception account for a relatively high cost, accounting for 48% and 32% of the cost of device components, respectively. The main body of TOSA is laser chips (VCSEL, DFB, EML, etc.), while the main body of ROSA is detector chips (APD/PD, etc.)