HK Stock Market Move | Cig Shanghai (06166) rose nearly 10% in early trading. According to reports, Google has added a light module order that will be used to expand the TPU cluster.

In early trading, Cig Shanghai (06166) rose nearly 10%, and as of the time of writing, it was up 8.37% at HKD 84.15, with a turnover of HKD 2.93 billion. On the news front, it was reported by the media that Meta is in deep negotiations with Google, considering a large-scale adoption of TPU in its own data centers starting from 2027, with potential purchases reaching tens of billions of dollars. Once this deal is finalized, it will be a major victory for Google in selling TPU externally. There have been recent reports in the industry that Google is further increasing orders for optical module leaders. From the feedback of the supply chain, this additional order is mainly focused on 800G/1.6T high-speed optical modules, which correspond to the capacity expansion needs of Google's new generation TPU clusters. Huaxin Securities previously pointed out that Cig Shanghai's several new products have successfully completed certifications with multiple customers, and it is expected that there will be a large quantity of shipments in 2025. The company continues to improve the development of multiple 800G LPO products, with the 800G DR8 LPO product showing good testing results on customer switches, and will continue to push forward the development and iterative updates of the 800G and 1.6T LPO and LRO products. It has completed the mass production and expansion of multiple products in its factories in Shanghai and Malaysia to meet the needs of customers in 2025.