II-VI and Lumentum Lead Global Optical Communication Chip Industry

Optical devices use optical chips to convert photoelectric signals. According to the type of light emission, it can be divided into surface emission and side emission. Among them, the surface emitting laser is mainly VCSEL (Vertical Cavity Surface Emitting Laser). There are many types of edge-emitting lasers, such as FP (Fabry-Perot, Fabry-Perot Laser), DFB (Distributed Feedback Laser, Distributed Feedback Laser), EML (Electro-Absorptive Modulated Laser), and the traditional FP laser chip is Gradually higher losses and shorter transmission distances narrow its application in the field of optical communication. There are three main types of core laser chips: DFB and EML and VCSEL.

World-class optical communication chip manufacturers include II-VI Incorporated (Finisar), Lumentum (Oclaro), Broadcom, Sumitomo Electric, Accelink Technologies, Hisense Broadband, and Mitsubishi Electric. II-VI and Lumentum are two major products of optical chips. In 2021, the two companies held revenue shares of 16.95% and 12.56%, respectively. The industry is relatively concentrated due to increased competition.

In the construction of optical communication, optical modules and optical devices are the core competencies of the optical communication industry. Viewed from the whole optical device industry chain, the main links are optical chips, optical devices, optical modules and optical devices. . Among them, optical chips belong to a technology-intensive industry, the process flow is very complicated, it is in the central position of the industrial chain, and the technical barriers are very high.

The optical transceiver module market can be divided into his two main sectors: telecom and datacom (data center/cloud). The telecom market can be further segmented into fixed networks, transport and access networks (FTTH) and wireless networks (4G, 5G, etc.).

In the next few years, the optical communication market is expected to register the highest growth rate in the Asia-Pacific region. One of the main factors driving the use of optical communication chips is his 5G-based station construction in China and his FTTx in emerging countries. Optical communication chips offer many opportunities, but the study group recommends that new entrants without technical superiority and upstream and downstream support for money alone should not enter the field.

The global optical communication chip market size is projected to reach US$6,420.73 million by 2028 from US$2,727.45 million in 2021. In terms of volume, the global sales of optical communication chips is KK 925.90 in 2021 and is expected to reach 2,392.54 KK in 2028.

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