Domestic Linkage Optical Modules

Domestic linkage optical modules are increasingly produced locally, driven by policy support, technological breakthroughs, and supply chain resilience, with innovations like LPO enabling low-power, high-performance optical interconnects.Domestic Production Trends

China is actively promoting the localization of optical modules to reduce import dependency and enhance supply chain security. National policies, such as the Ministry of Industry and Information Technology's guidelines on manufacturing reliability, explicitly support domestic production of optical communication devices . Regional initiatives encourage collaboration between industry, academia, and research institutions to develop high-end optical chips. As a result, domestic manufacturers have achieved over 65% localization for medium- and low-speed optical chips below 10G, and companies like ETU-LINK have built full production lines with on-time delivery rates exceeding 99% .

Technological Advancements

Domestic optical modules have reached performance levels comparable to international standards. For example, ETU-LINK's second-generation 100G QSFP28 ZR4 80KM module uses four-channel 28G NRZ wavelength division multiplexing, achieving 80 km transmission with power consumption below 5.5W . Core chip localization has progressed significantly, with mass production of 25G/50G DFB and EML lasers and a self-sufficiency rate for 25G+ laser chips exceeding 50% . High-end DSP chips remain a critical area for further domestic R&D.

Linear Pluggable Optics (LPO)

LPO technology is a key innovation in optical interconnects, removing DSPs from the module to reduce power consumption and latency . In LPO modules:

• The transmitter uses a high-linearity driver to directly modulate the optical signal.
• The receiver employs a high-linearity transimpedance amplifier (TIA) for photoelectric conversion.
• Signal equalization and compensation are handled by the host-side SerDes. This architecture can reduce power consumption by 30–50% per module and significantly lower latency, making it suitable for high-speed data center and AI computing deployments . However, LPO modules currently face challenges in multi-vendor interoperability, error correction, and maintaining signal integrity at speeds beyond 112G, requiring ongoing optimization.

Advantages of Domestic Linkage Optical Modules

• Supply Chain Resilience: Reduced reliance on imports mitigates geopolitical and trade risks .
• Cost and Service Efficiency: Domestic production offers competitive pricing and faster technical support .
• Technological Competitiveness: Modules now support high-speed transmission with low power consumption, comparable to international solutions .
• Scenario Adaptation: Domestic manufacturers provide end-to-end capabilities from chip selection to module integration and deployment in diverse network scenarios .

Outlook

The domestic optical module industry is expected to continue growing, with further localization of high-end chips, expansion of LPO and NPO architectures, and enhanced ecosystem standardization. These developments will strengthen the domestic supply chain, support large-scale 5G and AI deployments, and gradually reduce dependency on foreign suppliers .