Soochow: High increase in shipment of computing power servers drives demand for optical modules, overseas expansion and automation equipment become essential.

Soochow has released a research report stating that with the continuous increase in computing power demand, the demand for optical modules in 2026 has been raised to the tens of millions level. It is becoming increasingly difficult to meet such high production capacity demand through manual expansion. Therefore, stable and efficient automation equipment will become the preferred choice for the expansion of the optical module industry. Key recommendations for companies with relevant product layouts include: Robotechnik Intelligent Technology for optical module coupling equipment (300757.SZ), Wuxi Autowell Technology Co., Ltd. (688516.SH), Suzhou TZTEK Technology (688003.SH) and Quick Intelligent Equipment (603203.SH) for AOI inspection equipment, Bozhon Precision Industry Technology (688097.SH) for attachment equipment, GKG Precision Machine (301338.SZ) for automatic assembly equipment, and Shenzhen JPT Opto-Electronics (688025.SH) for Fiber Array Units (FAUs). AI computing power server demand continued to increase, driving the demand for optical modules. AI giants continue to increase capital expenditures, and server shipments are expected to continue to increase. In November 2025, Google Gemini3 was launched, achieving a leading score in benchmark testing, demonstrating its ability to score above market expectations and understand multiple modes. On one hand, 2026 is the time point for mass production of NVIDIA's Rubin architecture; on the other hand, the outstanding performance of Google Gemini3 has increased market attention on TPU servers, and the future Google TPU servers are expected to shift from internal use to external sales, with shipment expectations continuing to rise. Optical modules are core components for scaling AI out. To build a centralized and efficient AI cluster, optical communication is a must, and optical modules, as the core components for optoelectronic signal conversion, are essential for building AI clusters. On one hand, NVIDIA servers will evolve from GB200/GB300 to Rubin architecture, with higher signal transmission bandwidth requirements; on the other hand, the expected increase in shipments of Google TPU servers will also drive continuous growth in demand for optical modules. The optical module industry has been labor-intensive in the past, and technological iteration and overseas expansion have prompted automation demand. The optical module industry has been labor-intensive in the past. Processes such as chip placement, adhesive application, shell assembly, and inspection in the production of optical modules have mainly relied on manual labor. For example, as of the end of 2024, Zhongji Innolight and Eoptolink Technology Inc. had total employees of 8542 and 5212, respectively, with production personnel accounting for 66% and 83% respectively. Soochow predicts that following the three major development trends of technological upgrading, rapid demand expansion, and overseas expansion, the introduction of automation equipment in the optical module field is an inevitable trend. 1) Technological upgrading: Upgrading from 800G optical modules to 1.6T optical modules, significantly increasing the line density and integration, the precision of manual coupling and the accuracy of detection are gradually unable to meet the requirements, making the use of automated assembly and AOI inspection equipment a prevailing trend. 2) Rapid demand expansion: With the continuous increase in computing power demand, the demand for optical modules in 2026 has been raised to the tens of millions level. It is becoming increasingly difficult to meet such high production capacity demand through manual expansion. Therefore, stable and efficient automation equipment will become the preferred choice for the expansion of the optical module industry. 3) Overseas production capacity building: In order to support North American customers, optical module companies are gradually expanding overseas production capacity, shifting production capacity to Southeast Asia. Considering the issues of labor quality and stability in Southeast Asia, the demand for automation equipment is becoming more urgent.