Optical fiber broadband steadily, mobile Internet traffic, stimulate the development of optical communication market; Light module domestic enterprises advance, broad market space.

1) traffic, map is on the core of the network infrastructure level bearing hardware is light module, operators optical transmission network, the Internet cloud computing data center second class market pull industry demand continued rapid growth over the next five years, 5 g icing on the cake;

2) light module encapsulation transfer to China the trend of The Times, light chip design local fast after (light chip design - component - encapsulation, vertical integration: light fast science and technology; high-end optical chip design and component: Fujitsu, mitsubishi, Avago, new flyer - NPTN, ACIA; light module encapsulation: solectron suzhou, new Yi Cheng, Mr Fini network FNSR);

3) industry barriers continues to raise (- > 40 g - > 10 g 100 g - > 400 g), the left is king, high-end optical modules in the enterprise profitability continued ascension.

Look from the trend of the industrial structure changes, the light module global market is coming "from low-end to high-end, from Japan to China" and the outbreak of Internet traffic historic opportunity. In the future, grasp the high-end optical device technology (especially the chip technology), the China market (especially the data center market) light module manufacturers have enormous room for growth, the Chinese market grafting of global resources, China products cost-effective will become inevitable, the world into "oligarchs + time" in China. At the same time, huawei, zte, ran on behalf of the global industry "wisdom made in China" has been the dominant position, high barriers to competition pattern, the industry at the same time, will continue to benefit from traffic eruptions digital dividend, also drives the domestic light module global status continued ascension of the enterprise.

Benefit from the flow, continued ascension based on product structure and the data center market rise favorable light module enterprise upstream industry bargaining power to ascend.

1) China mobile planning XGPON1 in a large scale, for the first time in 2017 will be a powerful pull light module PON business growth;

2) securities companies is expected to data center market in 2106 will amount to 25% of the high-speed optical module business income accounted, continued nearly doubled in 2016-2017 type high growth, will become the important pillar of light module company growth.

3) 40 g optical module chip increase, 100 g optical module chip outsourcing, gradually produced 2017, 2016 q4-2017 gross margin, net interest rate elasticity.

Optical communications technology has semiconductor materials growth, semiconductor technology and the technology of planar optical waveguide, optical design and packaging technology and so on six big platform, 10 g optical chip production ability, and start the overseas and active chip research and development center construction of research and development center, 25 g optical chips, 100 g optical module, core key technology such as silicon light is expected to make a breakthrough.