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The optical communication industry looks ahead to the second peak

<h3 style="margin-top:3.7500pt;margin-bottom:7.5000pt;margin-left:0.0000pt;
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line-height:22.0000pt;mso-line-height-rule:exactly;"><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-weight: normal; font-size: 12pt;">“The 5G era is not as optimistic as everyone thinks" As early as 2018, an expert in the optical communication industry expressed this view to the audience at an industry forum. This statement was refreshing for many people at the time, as the optical communication industry, which had just benefited from the broadband China strategy and 4G construction, was full of vitality and optimistically looking forward to the arrival of 5G with inertia thinking. When it comes to 2024, due to various reasons including 5G, the optical communication industry has indeed entered a low point, and some companies have even seen the phenomenon of branch companies expanding emerging businesses exceeding their previous main business performance.</span><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-weight: normal; font-size: 12pt;"><br></span><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-weight: normal; font-size: 12pt;">However, like the crowded information and communication exhibition area of the 2024 Light Expo, a low tide does not mean a cold reception. Perhaps it was the recent words of the expert in the optical communication industry that explained the whole story: "The rise of AI has once again driven the demand of the industry, which was unexpected before." Walking through the exhibition hall, "AI" has also become the keyword of various booths, and related products have been launched to achieve close integration. The entire industry is looking forward to the second new peak after "4G+FTTX+DC". Coincidentally, analysis firm CRU has also provided the following prediction curve: 5.5G/6G, AIGC, and data centers will bring far more growth to the fiber optic cable industry than the first year of 5G, and rival the next wave of growth in the 4G+FTTX era.</span><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-weight: normal; font-size: 12pt;"><o:p></o:p></span></h3><p><img src="/Resource/News/2024/10/11/c7f87936eb5f463b87d17297d5e2ee4e.png" data-filename="/" style="width: 600px;"><br></p><h3 style="font-family: &quot;Microsoft YaHei&quot;, &quot;open sans&quot;, &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; line-height: 22pt; color: rgb(0, 0, 0); margin-top: 3.75pt; margin-bottom: 7.5pt; text-indent: 0pt; margin-left: 0pt;"><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-size: 12pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;"><br></span></h3><h3 style="font-family: &quot;Microsoft YaHei&quot;, &quot;open sans&quot;, &quot;Helvetica Neue&quot;, Helvetica, Arial, sans-serif; line-height: 22pt; color: rgb(0, 0, 0); margin-top: 3.75pt; margin-bottom: 7.5pt; text-indent: 0pt; margin-left: 0pt;"><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-size: 12pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">light copper simultaneous advancement</span></h3><h3 style="margin-top:3.7500pt;margin-bottom:7.5000pt;margin-left:0.0000pt;
text-indent:0.0000pt;text-autospace:ideograph-numeric;mso-pagination:widow-orphan;
line-height:22.0000pt;mso-line-height-rule:exactly;"><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-weight: normal; font-size: 12pt; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;">The trend of "light entering and copper retreating" may reflect the industry's prosperity at the previous peak, but in the process of moving from storage analysis to intelligent computing, for data centers, "light copper simultaneous advancement" may be the new trend. This is related to the emergence of liquid cooling solutions mentioned earlier, as this architecture brings GPUs closer together, and the advantages of copper cables are becoming more prominent between 0-3m. The advantages of AEC, such as low power consumption, light weight, high durability, and easy wiring, are even more obvious. At the same time, high bandwidth and low latency are more in line with the needs of AI. Stronger stability also prevents intelligent computing from becoming fragmented. In other words, with the increasing use of liquid cooling designs in the future, the market share of "copper" will steadily increase. In longer distance connectivity scenarios, "light" has also received a steady increase in demand. In the future, lower cost smooth upgrades can be achieved, while simplifying material management and wiring solutions, saving manpower and maintenance costs.</span><span style="font-family: 微软雅黑; letter-spacing: 0pt; font-weight: normal; font-size: 12pt;"><o:p></o:p></span></h3>