Innolight

FCC

2026-09-11 11:39:15

FCC final rule stops short of directly targeting major Chinese optical module makers

The U.S. Federal Communications Commission has formally released its final rule on equipment authorization and communications supply chain security, with publication set for Sept. 11 and the measure taking effect 30 days later. The outcome was less severe than many in the market had feared: core Chinese companies in the optical communications supply chain, including Eoptolink, Innolight, Suzhou Dongshan Precision Manufacturing and TFC Communication, were not directly placed on an FCC restriction list. The report says the immediate threat of a blanket ban has not materialized, even after the FCC moved optical transceiver modules into the Cover List control scope on July 22 and a draft proposal surfaced on Aug. 4 suggesting a ban on imports of new Chinese optical transceiver models. Still, the broader contest over supply chain security remains in place. A second and arguably deeper shift is unfolding at the same time. Co-packaged optics, or CPO, is moving toward mass production, led by companies such as NVIDIA and Broadcom. The article argues that while geopolitical restrictions may pressure Chinese suppliers, the more serious long-term challenge lies in the transition from pluggable modules to integrated optical-electrical architectures, especially as overseas foundries have already built out their positions in silicon photonics manufacturing.

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Citi

2026-09-07 06:37:48

Citi Starts Coverage on Innolight H Shares With Buy Rating and HK$1,524 Target

Citi has initiated coverage on Innolight’s H shares, listed as 03308.HK, with a Buy rating and a target price of HK$1,524. The bank said the target is based on 16.2x projected 2027 price-to-earnings. In its note, Citi forecast compound annual growth rates of 129% for revenue and 149% for net profit from 2025 to 2028. The bank tied that outlook to strong demand for AI optical communications, bandwidth upgrades, rapidly expanding production capacity, a better product mix, rising adoption of silicon photonics, and operating leverage. Citi also said Innolight’s broad product portfolio, scalable manufacturing capacity, advances in technology and research and development, a flexible and resilient supply chain, and established ties with leading global cloud service providers and AI customers should support its position in the AI era. The report was cited by Odaily, referencing Jin10.

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Optical Chips

2026-08-14 06:02:48

Nomura says Lumentum results point to persistent optical chip shortages, opening a window for Chinese suppliers

Lumentum’s latest quarter has become a key read-through for the optical communications supply chain, according to a Nomura global AI trend tracking report dated Aug. 12. The company posted June-quarter revenue of $1.01 billion, up 109% year over year, while component revenue in 4QFY26 rose 103% to $649 million. Nomura said those results, along with management guidance, show that shortages in electro-absorption modulated lasers (EML) and continuous-wave (CW) lasers are unlikely to ease through FY26 and FY27. The report highlighted several data points behind that view: narrow-linewidth laser component shipments climbed more than 130%, pump laser shipments rose 80%, and management expects pump laser volumes to grow another 4x over the next few quarters even as capacity remains largely sold out. EML also set another quarterly record, with 200G EML already accounting for more than 25% of total EML revenue and expected to exceed 50% by mid-2027. Nomura also pointed to OCS, or optical circuit switching, as a major growth driver. Lumentum said OCS shipments doubled from 3QFY26 to 4QFY26 and guided for triple-digit year-over-year OCS revenue growth in 1QFY27, while still targeting $400 million in OCS revenue in 2H26. In Nomura’s view, the tight upstream optical chip market is creating a structural share-gain opportunity for Chinese companies including Yuanjie Technology, Innolight, and Tianfu Communication.

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optical modul

2026-08-05 11:43:08

US plan to restrict Chinese optical modules puts a key AI supply chain under pressure

Reports carried by Chinese media citing overseas outlets said the US Federal Communications Commission is drafting a rule that could ban imports of new Chinese optical transceiver modules, with officials reportedly aiming to publish and enforce the measure in 2026, while still leaving room for revisions or a delay. The report immediately rippled through equity markets: US optical-module names strengthened at one point, while major A-share suppliers opened lower before trimming losses, with Tianfu Communication ending higher. Industry data cited in the report points to a deeper issue for any forced separation. LightCounting said Chinese vendors now account for more than 60% of the global optical module market and hold an even larger share in 800G and 1.6T segments. Demand from Meta, Google, Microsoft, Amazon and Nvidia alone is described as running into tens of millions of high-speed modules, while US domestic output remains far below that level. Revenue disclosures from Chinese manufacturers also show a heavy concentration of overseas, especially US, customers, highlighting the mutual dependence built into the current supply chain.

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Trump

2026-08-04 11:34:50

FCC said to target Chinese optical transceivers, lifting AAOI and other photonics stocks in premarket trade

Reuters, citing people familiar with the matter, reported that the Trump administration is drafting restrictions on imports of new Chinese-made data center components, with the U.S. Federal Communications Commission planning limits on Chinese optical transceivers and aiming to announce and put the measure into effect this year. The White House and the FCC did not comment on the report. The news sent U.S. optical networking and photonics names sharply higher in premarket trading. As of 6:47 p.m. Taipei time, Applied Optoelectronics rose 18.17% to $130.23, Coherent gained 14.23% to $329.15, and Lumentum advanced 11.33% to $868.27. Marvell, FOTO, Corning, Ciena, and Credo also posted sizable gains, while Nvidia was up 1.02% over the same period. The report also pointed to China’s position in high-speed optical modules. Innolight was described as holding more than 40% of the global 800G market and 50% to 70% of the 1.6T market, while Eoptolink was estimated at 25% to 30% in 800G. Together, the two companies account for roughly two-thirds of supply in the current mainstream 800G segment, according to the article.

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