Net profit triples as demand for silicon photonics surges strongly

Silicon photonics technology, as a key cross - cutting technology in the fields of modern optical communication and semiconductors, is gradually moving from the laboratory to the forefront of market applications. Its core logic lies in the in - depth integration of traditional photonic devices with mature silicon - based semiconductor processes. By integrating full - function modules such as light emission, modulation, transmission, and detection on a silicon substrate, high - speed, low - power, and highly integrated optical signal processing and transmission can be achieved. This technology not only brings performance innovation to traditional fields such as data centers and telecommunication networks, but also shows irreplaceable application potential in emerging scenarios such as artificial intelligence, autonomous driving, and quantum computing. It has become one of the core technologies supporting the next - generation information infrastructure.

From the perspective of market demand, the growth driver of the silicon photonics industry has shifted from "incremental demand" to "explosive demand." According to the latest report "Silicon Photonics 2025 - Focus on SOI, SiN, LNOI, and InP Platforms" by Yole, the silicon photonics industry is entering a critical period of rapid growth and diversified development. Artificial intelligence continuously drives the exponential increase in bandwidth demand, forcing the industry to transform towards higher data rates. It is expected that 200G/channel links will become the mainstream from 2026 to 2027, paving the way for the large - scale application of 800G and 1600G transceivers. Such high - bandwidth solutions precisely match the dual needs of "high - speed + high - energy efficiency" of hyperscale data centers and AI clusters, becoming the core scenario for the commercialization of silicon photonics technology.

From the perspective of the industrial chain structure, the silicon photonics industry has formed a complete link of "upstream basic support - midstream manufacturing core - downstream application expansion." In the upstream segment, high - quality silicon - based materials (such as SOI wafers), advanced lithography equipment (especially equipment for the fine - structure processing of silicon photonics chips), and professional electronic design automation (EDA) software are the technological cornerstones for the research and development of silicon photonics chips. The midstream chip manufacturing (tape - out process) and packaging and testing segments directly determine the performance indicators, mass - production yield, and cost - control ability of silicon photonics chips. Downstream system integrators combine silicon photonics chips with other electronic components to develop terminal products such as optical communication modules and optical computing systems suitable for different scenarios. At present, the synergistic effect of the global silicon photonics industrial chain has initially emerged. Enterprises and research institutions in different segments perform their respective duties, jointly promoting the industry from technology verification to large - scale mass production.

Milestone Moment

On September 11, the National Information Optoelectronics Innovation Center released a fully domestic 12 - inch silicon photonics full - process kit (PDK/ADK/TDK). This breakthrough marks that China has achieved full - process standardization from design, manufacturing, testing to packaging technology in the field of silicon photonics chips for the first time, which can support the large - scale mass production of fully domestic silicon photonics chips.

Compared with traditional microelectronic chips, silicon photonics chips have higher transmission rates and lower power consumption. They are the underlying technologies in fields such as 5G/6G, AI computing power networks, and quantum information. They can also bypass the dependence on EUV lithography machines, achieving "leapfrog development" in the chip field.

"With the full - process kit, all links in chip research and development can uniformly use the standardized 'language', realizing that design is followed by testing and testing is followed by packaging, avoiding repeated verification, shortening the research and development cycle, and reducing manufacturing costs." Chen Daigao, the manager of the silicon photonics technology department of the National Information Optoelectronics Innovation Center, introduced that the performance of this technological achievement has met the mass - production requirements and is supporting leading enterprises in the trial production of high - speed silicon photonics chips.

Domestic Manufacturers Divide the Trillion - Dollar Market

In the commercialization wave of the silicon photonics industry, domestic enterprises have formed a multi - echelon competition pattern. Different enterprises have occupied a place in niche markets with their technological accumulations and product layouts.

Xinyisheng: Leading in Both High - Speed Modules and Low - Power Technology

Xinyisheng's core advantages are concentrated in the field of high - speed optical modules. Its products are widely used in scenarios such as data centers, cloud computing, and 5G networks. It is one of the few domestic enterprises capable of mass - delivering 800G optical modules, directly benefiting from the investment wave in AI - driven computing power infrastructure. Market rumors suggest that it has entered the supply chain systems of international giants such as NVIDIA and Microsoft (although not officially confirmed), but this potential cooperation expectation has significantly enhanced the market's recognition of its technological strength.

In terms of technological layout, Xinyisheng not only consolidates its market position in traditional OSFP/QSFP - DD packaged modules but also actively bets on next - generation technologies - LPO (Linearly - Driven Pluggable Optics) and CPO (Co - Packaged Optics). These low - power, highly integrated technologies are the key directions to meet the high - bandwidth requirements of AI clusters and also reserve technological resources for its future competition.

Financial data confirm its growth trend: In the first half of 2025, Xinyisheng achieved an operating revenue of 10.437 billion yuan, a year - on - year surge of 282.64%; the net profit attributable to the parent company was 3.942 billion yuan, a year - on - year increase of 355.68%; the non - recurring net profit attributable to the parent company was 3.934 billion yuan, a year - on - year increase of 354.93%. Judging from the performance of a single quarter, in the second quarter of 2025, the revenue was 6.385 billion yuan (a year - on - year increase of 295.39% and a quarter - on - quarter increase of 57.56%), and the net profit attributable to the parent company was 2.37 billion yuan (a year - on - year increase of 338.36% and a quarter - on - quarter increase of 50.70%). The continuous increase in the sales proportion of high - speed optical module products has become the core driving force for performance growth. Reflected in the capital market, Xinyisheng's stock price has risen by more than 260% this year, and the market attention and valuation level have increased simultaneously.

Zhongji Xuchuang: Consolidating the Leading Position with Technological First - Mover Advantage and Capacity Expansion

Zhongji Xuchuang's "first - mover advantage" in the field of silicon photonics modules is particularly obvious: In 2020, it launched the industry's first 800G pluggable optical module, about one year ahead of competitors such as Xinyisheng; in 2023, it globally launched the high - performance 1.6T optical module and successfully entered the small - scale shipment stage in 2024; currently, it has the development ability of 3.2T optical modules, and its technology iteration speed has always kept up with the industry's forefront.

Since at least 6 to 8 optical modules are required to be paired with a single NVIDIA GPU, the demand for optical modules has increased sharply. In the first half of 2025, Zhongji Xuchuang earned 4 billion yuan by selling optical modules. Its stock price tripled within four months, and its latest market value exceeded 460 billion yuan. With this outstanding performance, the company successfully surpassed Haier Smart Home to become the enterprise with the highest market value in Shandong Province.

Zhongji Xuchuang's semi - annual report for 2025 shows that in the first half of the year, the company achieved an operating revenue of 14.789 billion yuan, a year - on - year increase of 36.95%; the net profit attributable to the parent company was 3.995 billion yuan, a year - on - year increase of 69.40%. The net profit growth rate is significantly higher than the revenue growth rate, indicating that the company's profitability is continuously increasing. The net cash flow from operating activities was 3.218 billion yuan, a year - on - year increase of 232.45%.

Currently, Zhongji Xuchuang is actively promoting the capacity expansion of high - end optical modules such as 800G. According to the company's semi - annual report for 2025, it adjusted the original fundraising project "Suzhou Xuchuang High - End Optical Module Production Base Project" and transferred the unused 446 million yuan of raised funds from this project to the new "Tongling Xuchuang High - End Optical Module Industrial Park Phase III Project." The core purpose of this adjustment is to further strengthen its ability to deliver high - end products such as 800G in batches.

Tenfu Communications: Making Steady Progress in the Niche Market of Optical Devices

Tenfu Communications focuses on the optical device segment in the middle of the silicon photonics industrial chain. Its products cover both active and passive devices. In the first half of 2025, it benefited from the development of the AI industry and showed a stable performance: achieving an operating revenue of 2.456 billion yuan, a year - on - year increase of 57.84%; the net profit attributable to the parent company was 899 million yuan, a year - on - year increase of 37.46%; the non - recurring net profit attributable to the parent company after deduction was 867 million yuan, a year - on - year increase of 35.27%.

From the perspective of the differentiated market demand, Tenfu Communications' product structure shows the characteristics of "strong in data centers and stable in the telecommunications market." The demand for optical devices in the telecommunications communication field is relatively stable, while the demand in the data center field is continuously and steadily increasing, driven by scenarios such as the virtual economy, cloud computing, and AI. Reflected in the production and sales, in the first half of 2025, the production of its optical communication components increased by 38.38% year - on - year (an increase of 58.17 million units), the sales volume increased by 15.80% year - on - year (an increase of 17.34 million units), and the operating revenue increased by 60.10% year - on - year (an increase of 912 million yuan). The high growth of production and revenue confirms the driving effect of data center demand on its business.

HTGD: Leveraging Both the Full - Industrial - Chain Advantage and Overseas Layout

HTGD maintains a competitive advantage in the main communication business with its full - industrial - chain layout of "optical preforms - optical fibers - optical cables - optical devices." In the first half of 2025, the company achieved an operating revenue of 32.049 billion yuan, a year - on - year increase of 20.42%; the net profit attributable to the parent company was 1.613 billion yuan, a year - on - year increase of 0.24%; the non - recurring net profit attributable to the parent company after deduction was 1.571 billion yuan, a year - on - year increase of 3.69%. Its performance in the second quarter was particularly outstanding, with an operating revenue of 18.781 billion yuan (a year - on - year increase of 26.64% and a quarter - on - quarter increase of 41.55%), and the net profit attributable to the parent company was 1.056 billion yuan (a quarter - on - quarter increase of 89.74%). The significant quarter - on - quarter growth rate shows the business recovery trend.

In terms of the main communication business, HTGD continuously consolidates the full - industrial - chain advantage of "optical preforms - optical fibers - optical cables - optical devices." Its independently developed G.654.E large - effective - area optical fiber has been applied in nearly 20 national - level computing power hub nodes across the country. The 165μm thin - diameter ultra - bend - resistant series of optical fibers are suitable for deep - sea optical cable systems, and the OM4 and OM5 multimode optical fibers meet the multimode high - speed connection needs of IDCs. In July this year, it released the hollow - core anti - resonant optical fiber, with a transmission loss of ≤0.2dB/km in specific wavelength bands and the ability for batch delivery. At the same time, it launched an expansion project of the "AI Advanced Optical Fiber Materials R & D and Manufacturing Center" with a total investment scale of 200 mu, which is planned to be completed and put into production in February 2026, focusing on the large - scale production of next - generation optical fiber materials. In addition, it is also promoting the overseas layout of the optical communication industry in places such as Mexico.

However, multiple research institutions predict that its net profit attributable to the parent company from 2025 to 2027 will be 3.26 - 3.37 billion yuan, 3.79 - 3.90 billion yuan, and 4.28 - 4.52 billion yuan respectively, corresponding to price - earnings ratios of 15 - 16 times, 13 times, and 11 - 12 times. The valuation is at a reasonable level in the industry, but the periodic decline in gross profit margin requires vigilance against the long - term pressure of low - price competition or raw material fluctuations. The decline in the R & D expense ratio requires a balance between cost control and technological innovation. Overseas business also faces uncertainties such as international politics and exchange - rate fluctuations, and the progress of large - scale expansion projects may affect the order delivery rhythm.

Shijia Photonics: High Growth in Optical Chip Business and Breakthrough in the Overseas Market

Shijia Photonics' main business covers three major categories of products: First, PLC optical splitter chips, AWG chips and components, VOA chips and device modules, OSW chips, WDM devices and modules, fiber optic connector jumpers, etc.; second, FP laser chips and devices, DFB laser chips and devices, EML laser chips, etc.; third, indoor optical cables,