--- title: "Open Source Securities: CPO is one of the evolution directions for AI intelligent computing centers and is in the early stage of industrialization with significant development potential" type: "News" locale: "en" url: "https://longbridge.com/en/news/223776928.md" description: "KaiYuan Securities released a research report indicating that CPO (Coherent Photonic Interconnect) is in the early stages of industrialization, with significant development potential, but commercial implementation requires industry collaboration. With the accelerated development of silicon photonics technology, CPO silicon photonic engines are gradually maturing, and major manufacturers are actively positioning themselves to promote the development of the CPO industry. The demand for high-speed switches in the AI era is increasing, and CPO optimizes the optoelectronic packaging solutions for data centers in terms of cost, power consumption, and integration, which is expected to drive related demand growth" datetime: "2025-01-02T09:03:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/223776928.md) - [en](https://longbridge.com/en/news/223776928.md) - [zh-HK](https://longbridge.com/zh-HK/news/223776928.md) --- # Open Source Securities: CPO is one of the evolution directions for AI intelligent computing centers and is in the early stage of industrialization with significant development potential According to Zhitong Finance APP, Kaiyuan Securities released a research report stating that CPO has great development potential, but commercial implementation still requires industrial collaboration. CPO is currently in the early stages of industrialization, and in addition to technical challenges, it is also limited by the market acceptance, standards, and manufacturing capabilities of integrated optical devices. As a part of optical communication solutions, its development still requires the collaborative advancement of the entire industrial chain. With the accelerated development of silicon photonics technology, the CPO silicon photonic engine is continuously maturing, and leading manufacturers are actively laying out CPO, further catalyzing the development of the CPO industry, which is expected to drive the growth of demand for silicon photonic engines, CW light sources, optical fibers, FAU, MPO/MTP, and more. ## **The main viewpoints of Kaiyuan Securities are as follows:** **In the AI optical communication era, CPO welcomes three major industrial changes** **(1) Change 1: The accelerated development of silicon photonics technology, and the continuous maturation of the CPO silicon photonic engine.** Silicon-based optoelectronics has the advantage of compatibility with mature CMOS microelectronic processes, making it the best solution for integrating optoelectronics and microelectronics. As the mainstream solution for current CPO optical engines, the maturity of silicon photonics technology is expected to further drive the development of CPO; **(2) Change 2: Leading manufacturers are actively laying out CPO, further catalyzing the development of the CPO industry.** Major chip manufacturers such as Intel, Broadcom, Raonvus, AMD, Marvell, and Cisco have all introduced CPO prototypes at recent OFC exhibitions, and companies like Nvidia and TSMC have also showcased their CPO plans; **(3) Change 3: The demand for high-speed switches is growing in the AI era.** CPO optimizes the optoelectronic packaging solutions for data centers across various dimensions such as cost, power consumption, and integration, with its advantages becoming increasingly prominent. **CPO is expected to drive the growth of demand for silicon photonic engines, CW light sources, optical fibers, FAU, MPO/MTP, and more** Photonics IC (PIC) and electronic IC (EIC) make up the optical engine, achieving high-performance optoelectronic conversion (PE/OE), which is the core of CPO technology. Silicon photonics technology is currently the main solution for CPO optical engines; external laser sources (ELS) are the mainstream choice for silicon photonic CPOs. Currently, mainstream silicon photonic CPOs have continuous wave (CW) laser sources separately externalized as pluggable units around high-density packages; in terms of internal optical fiber routing, the silicon photonic engine achieves optical input and output through coupling with fiber array units (FAU). In terms of optical fiber harness management, further introduction of fiber flexible boards (Fiber Shuffle), ribbon fibers (Fiber Ribbon), fiber cable bundles (Fiber Harness), fiber ribbon accumulators, and pre-assembled fiber boxes can improve the reliability of optical fibers. The optical fiber links using CPO contain more optical fiber connectors, with MPO/MTP multi-core connectors expected to become a future development trend. **CPO has great development potential, but commercial implementation still requires industrial collaboration, with a focus on various sub-sectors** **(1) Optical Engine Sector:** Includes silicon optical devices/module manufacturers and silicon optical process supporting manufacturers. Recommended stocks: Zhongji Xuchuang (300308.SZ), Xinyi Sheng (300502.SZ), Tianfu Communication (300394.SZ); Beneficiary stocks: Robotec (300757.SZ), Jieput (688025.SH), Juguang Technology (688167.SH); **(2) Optical Interconnection Sector:** Includes ELS/CW light sources, TEC, optical fibers, optical fiber connectors, and packaging processes. Recommended stocks: Zhongtian Technology (600522.SH), Hengtong Optic-Electric (600487.SH); Beneficiary stocks: Yuanjie Technology (688498.SH), Changguang Huaxin (688048.SH), Shijia Photon (688313.SH), Guangxun Technology (002281.SZ), Guangku Technology (300620.SZ), Fuxin Technology (688662.SH), Dongfang Electronics (000682.SZ), Taicheng Light (300570.SZ), Bochuang Technology (300548.SZ), Zhishang Technology (301486.SZ), Tianfu Communication (300394.SZ), Tongfu Microelectronics (002156.SZ), Changdian Technology (600584.SH), Huatian Technology (002185.SZ), Jingfang Technology (603005.SH), etc.; **(3) Switch Sector:** Mainly includes switch & switch chip suppliers. Recommended stocks: Unisplendour Corporation (000938.SZ), Shengke Communication-U (688702.SH), ZTE Corporation (00763,000063.SZ); Beneficiary stocks: RJWL (301165.SZ), FLINES (301191.SZ), Gongjin Technology (603118.SH), Fenghuo Communication (600498.SH), Guangxun Technology (002281.SZ), etc. **Risk Warning:** Risks of AIGC development slowing down, demand for supporting CPO not meeting expectations; risks of CPO-related process upgrades not meeting expectations; risks of CPO industry chain promotion not meeting expectations; risks of trade barriers ### Related Stocks - [301191.CN](https://longbridge.com/en/quote/301191.CN.md) - [301165.CN](https://longbridge.com/en/quote/301165.CN.md) - [603938.CN](https://longbridge.com/en/quote/603938.CN.md) - [603005.CN](https://longbridge.com/en/quote/603005.CN.md) - [600487.CN](https://longbridge.com/en/quote/600487.CN.md) - [300620.CN](https://longbridge.com/en/quote/300620.CN.md) - [600584.CN](https://longbridge.com/en/quote/600584.CN.md) - [688702.CN](https://longbridge.com/en/quote/688702.CN.md) - [688007.CN](https://longbridge.com/en/quote/688007.CN.md) - [002782.CN](https://longbridge.com/en/quote/002782.CN.md) - [688618.CN](https://longbridge.com/en/quote/688618.CN.md) - [603083.CN](https://longbridge.com/en/quote/603083.CN.md) - [688048.CN](https://longbridge.com/en/quote/688048.CN.md) - [000988.CN](https://longbridge.com/en/quote/000988.CN.md) - [CSCO.US](https://longbridge.com/en/quote/CSCO.US.md) - [000938.CN](https://longbridge.com/en/quote/000938.CN.md) - [002281.CN](https://longbridge.com/en/quote/002281.CN.md) - [002463.CN](https://longbridge.com/en/quote/002463.CN.md) - [600498.CN](https://longbridge.com/en/quote/600498.CN.md) - [002971.CN](https://longbridge.com/en/quote/002971.CN.md) - [688313.CN](https://longbridge.com/en/quote/688313.CN.md) - [300757.CN](https://longbridge.com/en/quote/300757.CN.md) - [300570.CN](https://longbridge.com/en/quote/300570.CN.md) - [002185.CN](https://longbridge.com/en/quote/002185.CN.md) - [300502.CN](https://longbridge.com/en/quote/300502.CN.md) - [MRVL.US](https://longbridge.com/en/quote/MRVL.US.md) - [000682.CN](https://longbridge.com/en/quote/000682.CN.md) - [688662.CN](https://longbridge.com/en/quote/688662.CN.md) - [300394.CN](https://longbridge.com/en/quote/300394.CN.md) - [603118.CN](https://longbridge.com/en/quote/603118.CN.md) - [002536.CN](https://longbridge.com/en/quote/002536.CN.md) - [300308.CN](https://longbridge.com/en/quote/300308.CN.md) - [600522.CN](https://longbridge.com/en/quote/600522.CN.md) - [688146.CN](https://longbridge.com/en/quote/688146.CN.md) - [301319.CN](https://longbridge.com/en/quote/301319.CN.md) - [00763.HK](https://longbridge.com/en/quote/00763.HK.md) - [600198.CN](https://longbridge.com/en/quote/600198.CN.md) - [688025.CN](https://longbridge.com/en/quote/688025.CN.md) - [002156.CN](https://longbridge.com/en/quote/002156.CN.md) - [300548.CN](https://longbridge.com/en/quote/300548.CN.md) - [688549.CN](https://longbridge.com/en/quote/688549.CN.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [688167.CN](https://longbridge.com/en/quote/688167.CN.md) ## Related News & Research - [Why TikTok is building a massive data center in Brazil](https://longbridge.com/en/news/294615358.md) - [Cyan publishes investor presentation on AI-powered cybersecurity solutions and phishing protection](https://longbridge.com/en/news/294940179.md) - [Hidroelectrica schedules webcast to present H1 2026 results](https://longbridge.com/en/news/294941510.md) - [BYD July NEV Volumes Decline Year-on-Year as Export Sales Surge](https://longbridge.com/en/news/294605282.md) - [Metriks AI wins AGCM two-star-plus Legality Rating](https://longbridge.com/en/news/294928926.md)