According to the latest research, the global market for AI-dedicated optical transceiver modules has entered a high-speed growth phase, with the estimated market size expected to soar from USD 16.5 billion in 2025 to USD 26 billion in 2026, representing an annual increase exceeding 57%.

2025 is regarded as the inaugural year of commercialization for 1.6T optical modules, with annual shipments projected to exceed one million units and the market size reaching USD 400 million. By 2026, demand is expected to surge to 30 million units, with the market size leaping to USD 4 billion.

Dissection of Each Link in the 1.6T Optical Module Industry Chain

Upstream: Core Chips/Materials/Devices

DSP Electrical Chips

200G EML Optical Chips

Core Materials

Thin-film lithium niobate (TFLN)

Indium phosphide (InP) substrates

Ceramic packaging substrates

Optical Devices

Isolators/Faraday rotators

Silicon photonics/lithium niobate modulators

Midstream: Optical Module Assembly

Technical Routes: Mainstream 8×200G EML; LPO (linear direct drive) reduces power consumption; silicon photonics/thin-film lithium niobate enhances integration.

Downstream: Cloud Providers/Data Centers

Demand Surge: Approximately 20 million units in global demand by 2026.

Profitability of Enterprises in the 1.6T Optical Module Industry Chain

Enterprise profitability typically manifests in the amount and level of earnings over a certain period. Profitability analysis involves a deep dive into a company's profit margins.

This article is part of the Enterprise Value Series, focusing on [Profitability]. It selects 11 enterprises in the 1.6T optical module industry chain as research samples, using return on equity (ROE), gross profit margin, and net profit margin as evaluation indicators.

Data is based on history and does not represent future trends; it is for static analysis only and does not constitute investment advice.

10. Jiayuan Technology

Industry Segment: Lithium Batteries

Profitability: ROE 0.82%, gross profit margin 4.95%, net profit margin 0.57%

Performance Forecast: ROE peaked at 0.82% in the past three years, with the latest forecast average at 8.33%

Main Products: Lithium battery copper foil as the primary revenue source, accounting for 86.28% of income, with a gross profit margin of 5.27%

Company Highlights: Jiayuan Technology's equity-invested company, Endatong, is a major supplier to Oracle and can mass-produce 1.6T optical modules.

9. Huilü Ecology

Industry Segment: Communication Network Equipment and Devices

Profitability: ROE 5.53%, gross profit margin 18.41%, net profit margin 9.61%

Performance Forecast: ROE has continuously risen to 5.53% in the past three years, with the latest forecast average at 9.40%

Main Products: Optoelectronic devices as the primary revenue source, accounting for 72.39% of income, with a gross profit margin of 16.86%

Company Highlights: Huilü Ecology, through its controlling stake in Wuhan Junheng Technology, directly owns and is advancing the R&D, sampling, and mass production plans for 1.6T optical modules.

8. Accelink Technologies

Industry Segment: Communication Network Equipment and Devices

Profitability: ROE 7.55%, gross profit margin 22.46%, net profit margin 7.93%

Performance Forecast: ROE has continuously declined to 7.55% in the past three years, with the latest forecast average at 10.75%

Main Products: Data and access as the primary revenue source, accounting for 61.67% of income, with a gross profit margin of 17.83%

Company Highlights: Accelink Technologies' main business is optoelectronic devices, modules, and subsystem products. The company's 1.6T optical module products are capable of batch delivery.

7. GigaLight

Industry Segment: Communication Network Equipment and Devices

Profitability: ROE 6.34%, gross profit margin 30.35%, net profit margin 10.43%

Performance Forecast: ROE has fluctuated between 1%-14% in the past three years, with the latest forecast average at 7.90%

Main Products: Optical modules as the primary revenue source, accounting for 99.02% of income, with a gross profit margin of 30.55%

Company Highlights: GigaLight's main business is optical communication transceiver modules. The company's 1.6T optical module products have been sent to multiple customers for testing and verification.

6. Huagong Tech

Industry Segment: Laser Equipment

Profitability: ROE 13.97%, gross profit margin 21.22%, net profit margin 10.13%

Performance Forecast: ROE has continuously risen to 13.97% in the past three years, with the latest forecast average at 17.07%

Main Products: Optoelectronic device series as the primary revenue source, accounting for 42.47% of income, with a gross profit margin of 13.26%

Company Highlights: Huagong Tech's main products are ultra-high-speed optical modules, copper connection modules, intelligent in-vehicle optics, and satellite communication optical modules. The company has achieved scaling (large-scale) delivery of 1.6T optical module products in the global first tier.

5. Luxshare Precision

Industry Segment: Consumer Electronics Components and Assembly

Profitability: ROE 21.10%, gross profit margin 11.91%, net profit margin 5.47%

Performance Forecast: ROE has continuously declined to 21.10% in the past three years, with the latest forecast average at 20.70%

Main Products: Consumer electronics as the primary revenue source, accounting for 79.52% of income, with a gross profit margin of 10.64%

Company Highlights: Luxshare Precision's main products are consumer electronics, automotive electronics, communications, and data centers. The company's 1.6T optical modules are progressing smoothly with domestic and foreign customers.

4. Dongshan Precision

Industry Segment: Printed Circuit Boards

Profitability: ROE 6.89%, gross profit margin 14.09%, net profit margin 3.47%

Performance Forecast: ROE has fluctuated between 5%-12% in the past three years, with the latest forecast average at 22.72%

Main Products: Electronic circuit products as the primary revenue source, accounting for 63.85% of income, with a gross profit margin of 17.59%

Company Highlights: Dongshan Precision's subsidiary, Source Photonics, primarily promotes the sampling of 1.6T products using the EML solution.

3. Cambridge Industries Group

Industry Segment: Communication Terminals and Accessories

Profitability: ROE 8.25%, gross profit margin 22.31%, net profit margin 4.61%

Performance Forecast: ROE has continuously risen to 8.25% in the past three years, with the latest forecast average at 26.50%

Main Products: Telecom broadband as the primary revenue source, accounting for 41.31% of income, with a gross profit margin of 14.01%

Company Highlights: Cambridge Industries Group has deployed multiple 1.6T optical module models, with some products entering small-batch supply stages.

2. YOFC

Industry Segment: Communication Network Equipment and Devices

Profitability: ROE 41.00%, gross profit margin 44.72%, net profit margin 32.82%

Performance Forecast: ROE has fluctuated between 13%-42% in the past three years, with the latest forecast average at 54.71%

Main Products: Point-to-point optical modules as the primary revenue source, accounting for 99.36% of income, with a gross profit margin of 44.88%

Company Highlights: YOFC's 1.6T high-speed optical module products have been shipped in scale to global leading cloud and AI manufacturers.

1. Zhongji Innolight

Industry Segment: Communication Network Equipment and Devices

Profitability: ROE 43.84%, gross profit margin 42.04%, net profit margin 30.28%

Performance Forecast: ROE has continuously risen to 43.84% in the past three years, with the latest forecast average at 52.37%

Main Products: Optical communication transceiver modules as the primary revenue source, accounting for 97.95% of income, with a gross profit margin of 42.61%

Company Highlights: Zhongji Innolight's high-speed optical modules, particularly the 1.6T products, are rapidly increasing in volume and market share, with ongoing capacity expansion.