Guosheng Securities: Silicon photonics technology reconstructs the optical module industry chain, focusing on the investment direction of front-end chip design and chip manufacturing.

Guosheng Securities released a research report stating that the rise of silicon photonics technology is a profound reconstruction of the underlying logic and value chain of the entire industry, shifting the investment focus and value core 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 silicon photonics perspective will also change, with core focus on four directions: silicon photonics chip design companies - fabless light asset model to enhance ROE, the most core link; silicon modulation chip FAB manufacturers - relying on wafer factories to increase capacity, but not demanding in process requirements; silicon photonics supporting chips/devices - core includes CW light source, FA, isolator and other links; semiconductor equipment required by silicon photonics - Fab and module factory supporting coupling/testing and other links.