China optical chip stocks slide as price-cut rumors center on 70/100mW CW, while 200G EML remains tight

Optical communication names in China have come under pressure since trading resumed after the National Day holiday, with Yuanjie Technology, Changguang Huaxin and Shijia Photons among the stocks hit by heavy selling. The sell-off has coincided with market chatter about price pressure on 1.6T optical chips and rumors of tighter overseas policy risks. The article argues that those concerns may be too broad. It cites comments from Lumentum in Tokyo saying its capacity is fully booked into early 2029 and that some products face supply-demand gaps as large as 70%. In the company’s view, both EML and CW lasers remain undersupplied, and demand could rise another three to four times once optical interconnects are used more widely for GPU scale-up links in 2028. Set against that backdrop, the piece narrows the likely area of actual pricing pressure to 70/100mW CW lasers used in silicon photonics solutions and shared with 800G applications. Domestic suppliers have already moved into volume shipments there and are expanding capacity. By contrast, 200G EML and higher-power laser products are still described as a seller’s market. The article says the stock pullback may reflect a repricing of how sustainable today’s unusually high margins are, rather than evidence that broad price cuts have already happened.