The compound growth rate of optical module chips in the next five years may reach 18%, and localization will accelerate

Recently, Xin Guobin, vice minister of the Ministry of Industry and Information Technology, said at the press conference of the State Council's new office that the implementation of major projects and projects in the "14th Five-Year Plan" will be carried out, and a number of industrial infrastructure reconstruction projects will be launched, which also mentioned encouraging and supporting enterprises to strengthen technological transformation and promote telecom operators to accelerate the investment and construction of 5G and gigabit optical networks.Gigabit network deployment and 5G scalable small base station construction will bring potential growth to optical modules. Optical module is an active optical device, in the equipment sending end and pick-up end to achieve electricity-optical and optical-electrical conversion, the upstream of the optical module is mainly optical chips and passive optical devices, downstream is mainly telecommunications equipment and data communication equipment, many institutions also pointed out that optical modules are one of the indispensable basic components of digital infrastructure.Upstream, market research agency LightCounting predicts that IC chips play a key role in optical modules, including laser drivers, TIAs, CDRs and DSPs, which are widely used in most pluggable and on-board optical modules.LightCounting used its extensive data on transceiver shipments and industry knowledge to forecast IC chipsets. Overall, the IC chipset market for optical transceivers is expected to grow at a CAGR of 18% from 2022 to 2027, with total sales growing from approximately $2.4 billion in 2022 to more than $5.4 billion, primarily for Ethernet and DWDM optical modules.