Dongwu Securities: Increased shipments of computing power servers are driving demand for optical modules to expand overseas production of automation equipment, making it a necessary option

The Zhitong Finance App learned that Dongwu Securities released a research report saying that AI giants are supporting continued increases in capital development, and server shipments are expected to continue to rise. The optical module is the core component of computing power Sacle Out. As the core component of optical signal conversion, it is a core essential option for computing power cluster construction. The bank judged that with the three major development trends of technological upgrading, rapid demand release, and overseas production expansion, the introduction of automation equipment in the optical module field is an inevitable trend.

The main views of Dongwu Securities are as follows:

Demand for AI computing power servers continues to improve, driving demand for optical modules

AI giants' capital investment supports continued increases, and server shipments are expected to continue to rise. In November 2025, Google Gemini 3 was launched, achieving a faultless lead in Benchmark test scores, showing the scoring ability and multi-modal understanding ability to exceed market expectations. On the one hand, 2026 is the time for mass production of Nvidia's Rubin architecture; on the other hand, Google Gemini 3's performance exceeding expectations is driving market attention to TPU servers. In the future, Google TPU servers are expected to shift from personal use to export sales, and shipments are expected to continue to rise.

The optical module is the core component of the computing power Sacle Out. In order to build a centralized and efficient computing power cluster, optical communication is a necessary option. As the core component of optoelectronic signal conversion, the optical module is the core essential option for computing power cluster construction. On the one hand, Nvidia servers will evolve from GB200/GB300 to the Rubin architecture, putting forward higher signal transmission bandwidth requirements; on the other hand, the expected increase in Google TPU server shipments will also drive demand for optical modules to continue to improve.

In the past, optical modules were labor-intensive industries, and technology iteration+overseas production expansion spawned automation requirements

Optical modules used to be a labor-intensive industry. In the past, processes such as patching, gluing, case assembly, and inspection in the optical module production process mainly relied on manual completion. Take Zhongji Xuchuang and Xinyisheng as an example. By the end of 2024, the total number of employees of the two was 8,542 and 5,212, respectively, of which 5,625 and 4,335 production personnel were respectively, accounting for 66% and 83% respectively. The bank's judgment follows the three major development trends of ① technology upgrading ② rapid demand release ③ overseas production expansion. The introduction of automation equipment in the optical module field is an inevitable trend.

1) Technology upgrade: From the 800G optical module to the 1.6T optical module, the overall circuit density and integration have been greatly improved. The coupling accuracy and detection accuracy of manual assembly are gradually becoming difficult to meet the requirements. The use of automated equipment assembly and AOI equipment inspection is the general trend.

2) Rapid demand release: As demand for computing power continues to rise, demand for optical modules has been raised to the level of 10 million in 2026. It is gradually difficult to meet such high production capacity requirements through manual expansion. Automation equipment is stable and efficient, and it will become the first choice for the optical module industry to expand production in the future.

3) Overseas production capacity construction: In order to support North American customers, optical module companies are gradually developing overseas production capacity at this stage and are shifting production capacity to Southeast Asia. Considering the labor quality and stability issues in Southeast Asia, the demand for automation equipment is even more urgent.

Investment advice

Production automation in the optical module industry is trending, and the focus is on recommending companies with related product layouts. Optical module coupling equipment suggests focusing on [Robotech], AOI testing equipment suggests focusing on [Autoway] [Tianzhun Technology] and [Quick Smart], attachment equipment suggests focusing on [Bozhong Precision], automated assembly equipment suggests focusing on [Keger Precision], and fiber array units (FAU) suggests focusing on [JP].

Risk Alerts

Macroeconomic risks, progress in computing power construction falls short of expectations, and optical module companies are falling short of expectations in expanding production.