GF SEC: The Ministry of Industry and Information Technology is promoting the deployment of all-optical exchange applications and paying attention to the investment opportunities brought by the increase in OCS traffic.

GF SEC released a research report stating that the Ministry of Industry and Information Technology is promoting the deployment of all-optical switching applications and other related technologies to reduce network latency from terminal to server and enhance application interaction experience. OCS all-optical switching is being promoted by cloud vendors, operators, equipment manufacturers, and others, accelerating the application landing process, and the industry is expected to resonate domestically and internationally. It is recommended to pay attention to the opportunities for domestic manufacturers in OCS component supply and whole-machine manufacturing. In addition, the Optical Fiber Communication Conference (OFC) held in March proceeded as scheduled, with companies such as Lumentum, Coherent, Terahop, Eoptolink Technology Inc., and Accelink Technologies showcasing OCS whole-machine solutions, highlighting the investment opportunities brought by the expansion of OCS. Key Points from GF SEC: Domestic Operators: During the Global Cooperation Partners Conference of China Mobile Limited on October 12, 2025, at the Innovation Joint Forum of the Computing Network, Mobile Cloud, together with the Chinese Academy of Sciences Institute of Computing and China Mobile Limited Research Institute and other core enterprises in the industry chain, released the "Cloud Intelligent Algorithm Optical Interconnection Development Report." The report indicated that in the Scale-Out layer, Mobile Cloud will consider using OCS in place of the existing SuperSpine in various planes in the future. This replacement of OCS for SuperSpine is not simply a device upgrade but a paradigm shift from "electricity-centric, with optical as a supplement" to "all-optical native" in the Mobile Cloud computing network architecture. It fundamentally reconstructs the all-optical aspects at the bottom of the algorithm network, solving the bandwidth bottleneck, latency loss, and expansion constraints of large-scale AI computing clusters, providing core support for the elastic networking of "N+X" intelligent computing nodes. Local Domestic Levels: On March 23, 2026, the Shenzhen Municipal Bureau of Industry and Information Technology recently issued the "Action Plan for Accelerating the High-Quality Development of the Artificial Intelligence Server Industry Chain in Shenzhen (2026-2028)," proposing to promote the evolution and industrial application of all-optical switching technology and enhance the independent R&D capabilities of core materials, optical chips, and optical devices. Focus on the investment opportunities brought by OCS: At the OFC in March, Lumentum, Coherent, Terahop, Eoptolink Technology Inc., and Accelink Technologies, among others, showcased OCS whole-machine solutions. Lumentum stated at the OFC that its OCS business exceeded expectations, with demand from three core customers substantially increasing. Orders for OCS surged to over $4 billion, with peak deliveries expected in the second half of 2026. It is estimated that OCS will achieve annual revenue exceeding $1 billion in 2027. Coherent raised its global OCS market size guidance from $20 billion to $40 billion by 2030 at the OFC conference. Focus on domestic manufacturers' opportunities in OCS component supply and whole-machine manufacturing: Optowide Technologies (688195.SH) stated on the exchange's interactive platform that its products can meet the strict standards of core optical switching components for AI computing clusters. The company participated early in the preliminary research projects of major whole-machine manufacturers, giving it a first-mover advantage in the supply chain. Zhongji Innolight (300308.SZ) showcased a 300x300 scale OCS optical switch at OFC 2026 through its overseas operating entity TeraHop. Compared to the low-channel 64x64 version showcased last year, the number of ports has significantly increased, with losses controlled within 2dB, reaching an industry-leading level. Eoptolink Technology Inc., (300502.SZ) showcased its new OCS products for the first time at OFC 2026. Eoptolink Technology Inc.'s OCS switches NX200 and NX300 support 140 ports and 320 ports respectively, enabling optimization of the architecture for AI networks of different scales. Both products use Eoptolink Technology Inc.'s independently developed MEMS micromirror array at their core. Risk warnings: Risks of AI infrastructure construction falling short of expectations; risks of AI application development falling short of expectations; risks of changes in import and export policies in the AI field; risks of reduced international cooperation.