Key Points Industry and Company Involved * Industry: Data center networking, high-speed interconnects, and optical module technology * Company: Not specified, but likely involves companies involved in data center networking and optical module manufacturing Core Views and Arguments * CPU Technology: * Expected to start small-scale trials in switches in H2 2025 and scale up in 2026 * Higher adoption rate expected in the coming years * Aimed at replacing optical modules to reduce power consumption and cost * Offers significant power and cost savings compared to traditional optical modules * Silicon Photonics: * Provides higher integration and lower cost compared to traditional optical modules * Reduces the need for signal compensation and simplifies system design * Offers cost savings in packaging and electrical components * Co-packaging: * Eliminates the need for signal compensation and simplifies system design * Reduces power consumption and material costs * Optical Engine Technology: * Achieved industrialization in 2024, with decreasing costs and low power consumption * Successfully applied in switches and expected to be extended to GPU side * Market Potential: * Significant market potential in data center networking and GPU interconnects * Estimated market size of $10-15 billion by 2025 Other Important Points * Optical Modules: * Used for server-to-server networking and data transmission between network cards * CPU technology can replace optical modules in some scenarios * Silicon Photonics vs. E-Fuel: * Different in terms of working principles and operation complexity * Optical Coupling: * Plays a crucial role in the transmission system * Involves complex processes and high-precision equipment * Passive Components: * Maintain stable value in the market * Application scenarios have changed with technological development * Photonic System Package (PSP): * Can significantly improve gross margins * Enhances market competitiveness * Optical Engine Technology vs. Copper Wire: * Offers lower power consumption and lower cost * Expected to replace copper wire in the future * Challenges and Solutions: * CPU side: Maintenance, fault rate, and packaging challenges * GPU side: Volume adjustment challenges and high bandwidth requirements * Market Participants: * Tianfu, Quanchuang, Xingzheng, and Huaoguang Optics * Each has its own strengths and focuses on different aspects of the industry