According to the latest high-speed interconnect market research from TrendForce, the immense computational demands of artificial intelligence are driving the adoption of new infrastructure. Google's next-generation Ironwood cabinet system, which integrates a 3D Torus network topology and the Apollo OCS all-optical network, establishes a high-speed interconnect architecture. This advancement is expected to significantly increase the global shipment share of high-speed optical transceiver modules supporting 800G and above. The share is projected to rise from 19.5% in 2024 to over 60% by 2026, gradually making these modules a standard component in AI data centers.
Within the architecture that incorporates Optical Circuit Switches (OCS), TPUs inside the Ironwood cabinets utilize high-speed copper cables for short-distance interconnects. Data transmission between different cabinets is entirely handled by the all-optical network. From the design phase, AI clusters are required to be equipped with sufficient 800G and 1.6T optical modules. Based on TrendForce's projection of nearly 4 million Google TPU shipments by 2026, the corresponding demand for 800G+ optical modules is estimated to exceed 6 million units.
Beyond the advanced architecture for AI clusters, the primary advantages of Google's design are "power savings" and "cost efficiency." TrendForce states that the core of Apollo OCS technology lies in using Micro-Electro-Mechanical Systems (MEMS) to enable direct connections between data fibers. This approach avoids the energy consumption and latency associated with repeated conversions between optical and electrical signals in traditional systems. A single OCS switch consumes approximately 95% less power compared to a traditional switch. Furthermore, when future bandwidth needs to be upgraded from 800G to 1.6T, enterprises can simply replace the high-speed optical modules rather than rebuilding the entire system, making upgrade costs significantly more competitive.
From a supply chain perspective, leading manufacturer InnoLight (Zhongji Innolight Co.,Ltd. (300308.SZ)) is expected to capture a substantial portion of Google's 800G+ optical module orders. This is due to its collaborative foundation with Google on silicon photonics and the 1.6T platform. Along with second-tier supplier Eoptolink (Eoptolink Technology Inc.,Ltd. (300502.SZ)), these two companies are anticipated to secure nearly 80% of the related orders. Lumentum plays a critical role in supplying OCS systems and MEMS components, and its production capacity planning will directly influence the rollout pace of the Apollo OCS technology.
TrendForce emphasizes that as computing power continues to scale, the demand for data transmission between cabinets and clusters is simultaneously increasing. Consequently, the technological evolution and supply of high-speed optical modules, lasers, and other optical communication components are becoming a decisive factor—alongside GPUs and memory—influencing the speed and cost of computing power expansion.
Comments