Broadcom Technology: 10G PON optical module prices drop significantly, companies expand production and sales to reduce costs

Recently, Broadcom Technology said in an institutional survey that while continuing to expand the domestic market for data communication products of 100G and below, it will launch a full range of data communication products of 200G in the first quarter of this year to meet the future upgrade needs of domestic customers. The company's silicon photonics 400G DR4 module has been tested well by many customers, and the production line has been initially built and batch shipments have begun. It is hoped that silicon photonics 400G products will achieve breakthroughs in domestic and foreign markets this year.

In terms of 10G PON optical modules, Broadcom Technology shipped more than 500,000 10G PON optical modules last year, leading the domestic OLT module market. The company said that domestic demand for 10G PON optical modules is in a period of sustained growth, and the market price has dropped significantly in 2020 and 2021. The company continues to reduce costs through R&D iterations, improving efficiency, and expanding production and sales scale, and it is expected that the gross profit margin will remain stable.

In addition, the customers of Broadcom's optical passive components are mainly major domestic and overseas communication equipment manufacturers, with stable customer relationships and a leading market share. Among them, optical splitters and transmission DWDM components occupy the top global market share.

Broadcom Technology said that the company expects the market demand for passive optical splitters and DWDM devices to be relatively stable this year. Driven by both policy and market factors, domestic operators continue to increase investment in 10G PON network construction, and demand is expected to increase significantly this year compared with last year. At the same time, some major overseas operators also have potential demand for large-scale construction of 10G PON networks. It is expected that the demand for optical modules by domestic and foreign Internet companies and cloud computing companies will continue to grow this year.

Regarding its joint venture company Huaxin Semiconductor, Broadcom Technology said that its main business is the research and development and production of VCSEL laser chips. The company's investment is aimed at supporting the domestic laser chip industry and strengthening its cooperation with it on VCSEL laser chips.