Guosheng Securities: Silicon photonics technology reconstructs the optical module industry chain; focus on investment directions in front-end chip design and wafer manufacturing

Jin10 Data, November 9th: Guosheng Securities released a research report stating that the rise of silicon photonics technology represents a profound restructuring of the entire industry’s fundamental logic and value chain. It shifts the investment focus and core value of the optical module industry from the backend “packaging” to the frontend “chip design and wafer manufacturing.” At the same time, the investment paradigm based on the silicon photonics perspective will also change, with four key areas of focus: silicon photonics chip design companies—improving ROE through a fabless, lightweight asset model, which is the most critical link; silicon modulation chip FAB manufacturers—relying on wafer fabs to boost capacity, but with low process requirements; silicon photonics supporting chips/devices—including core components such as CW light sources, FA, isolators, etc.; and semiconductor equipment needed for silicon photonics—supporting coupling/testing processes for fab and module manufacturers.