HK Stock Market Move | Cig Shanghai (06166) rose by more than 6%, the global optical module industry is accelerating its upgrade to 800G/1.6T. The industry is benefiting from the continuous growth in demand for AI computing power.

Cig Shanghai (06166) rose by more than 6%, reaching 5.68% at the time of publication, trading at 86.5 Hong Kong dollars with a trading volume of 1.17 billion Hong Kong dollars. On the news side, Guosheng pointed out that, driven by the demand for AI computing power, the global optical module industry is accelerating its upgrade to 800G/1.6T. As an essential passive component that protects lasers in optical modules, optical isolators are facing a global shortage of their core material Faraday rotators, becoming a bottleneck in the expansion of optical module production capacity. It is understood that Cig Shanghai's core business focuses on the research and development, production, and sales of optical modules, with leading technology in the high-end optical module fields such as 800G and 1.6T. At the supply chain level, the company has completed the multi-source certification of key materials such as silicon optical chips and isolators, ensuring a 100% completion rate of material matching and shipments. Western stated that since 2025, benefiting from the continuous growth in the demand for AI computing power, the optical module industry has maintained high prosperity. On one hand, silicon photonics modules are gradually gaining recognition from end customers due to their advantages of high integration, low energy consumption, and low cost. On the other hand, with the shortage of raw materials for EML solutions, silicon photonics solutions have become a key supplement to production capacity. The institution continued to point out that companies that are first to enter mass production of silicon photonic modules are expected to enjoy high gross margins during the industry's accelerated period, as well as benefit from the consolidation and convergence of market share in the industry.