Event:
On April 29, 2022, lightcounting released the latest research report "Ethernet switches for cloud datacenters" to predict the market scale of high bandwidth (12.8T and above) and low latency AISC chips dedicated to switches in cloud computing data centers.
Comments:
The scale of cloud computing high-end ASIC chip market will grow steadily in the next five years
Cloud computing high-end switching chip refers to the high bandwidth (12.8T and above) and low delay AISC chip dedicated to the switch of cloud computing data center. Lightcounting has calculated the current market scale and made a five-year forecast. In 2021, the market size of this segment is less than US $300 million, and the CAGR from 2022 to 2027 is expected to reach 19%.
The competition pattern of ASIC chip market has intensified significantly
Broadcom released Tomahawk series 12.8T products in 2017, monopolizing the global switch AISC chip market. In 2020, Broadcom released 25.6ttomahawk4 and continued to maintain its market leading ability. From 2019 to 2020, Intel and Cisco, as new competitors, successively released 12.8T ASIC chips and 25.6t products in 2021. Mellanox is even expected to realize the global launch of 51.2taisc chip and surpass Broadcom.
Co packaged optical devices (CPO) significantly increase the size of ASIC Market
The application of CO encapsulated optical device (CPO) technology brings potential growth opportunities for the market of high-end switch ASIC. Lightcounting assumes that by 2027, 15% of the ports in 25.6t and 51.2t switch chips will be equipped with CPO, so the market scale of cloud computing high-end switch chips will increase from US $951 million to US $1.631 billion in 2027, and the market scale will expand by 71.5%.
There are many challenges in the scale application of CPO technology
Head users have different attitudes towards CPO technology. Google is skeptical about CPO and plans to continue to use pluggable optical modules in the next decade. Meta supports CPO very much, but they hope to develop a new ecosystem around this technology instead of deploying a large number of Broadcom proprietary solutions. CPO technology will also pose a great challenge to the current network construction and operation and maintenance system. The hardware failure of one port requires the replacement of the whole equipment, which is also the problem that CPO technology deployment needs to face.
Suggested concern
It is suggested to pay attention to the leading enterprises in China's optical module industry: Zhongji Innolight Co.Ltd(300308) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Broadex Technologies Co.Ltd(300548) , Huagong Tech Company Limited(000988) , Accelink Technologies Co.Ltd(002281) , Eoptolink Technology Inc.Ltd(300502) , Cig Shanghai Co.Ltd(603083) , etc.
Risk tips
Systemic risk, the market is less than expected risk, and the market competition intensifies the risk.
