With the rapid increase in AI computing power demand, the capital expenditures of the four major cloud service providers (CSPs) in North America remain high, comprehensively driving the demand for high-speed interconnect upgrades in data centers. Driven by both server volume expansion and switch specification upgrades, the usage of optical transceiver modules has surged, accelerating the transition from 800G to the 1.6T generation. Optimistic about the explosive growth in demand for silicon photonics (SiPh), near-package optics (NPO), and future co-package optics (CPO) processes, GMT (4573) has already deployed key "coupler workstations." Benefiting from the mass production of 800G optical transceiver modules and the small-scale production of 1.6T modules, January revenue hit a new monthly high since the third quarter of 2018, and analysts are optimistic that the company's operations will achieve double-digit growth this year.

CSP's expansion of AI data centers is boosting silicon photonics, driving mass production of 800G 1.6T optical modules. The "coupler workstation," a key component in GMT deployment, is the biggest beneficiary, experiencing robust shipments and a promising outlook for full-year operations. (Photo by Wu Qingchang)

Three Kinetic Energy Ignition

Order visibility has increased significantly

According to a TrendForce report, 800G and 1.6T optical transceiver modules have entered mass production, and higher bandwidth silicon photonics/CPO platforms are expected to be deployed in AI switches starting in 2026. Analysts point out that GMT growth momentum this year mainly comes from three aspects: First, CSP plant expansion is driving 800G mass production and 1.6T small-scale production, resulting in continued strong shipment momentum. Second, SiPh is transitioning from verification to mass production, with procurement focusing on "standardized workstations," significantly increasing order visibility. Third, investment in FAU/optical engine packaging and testing is heating up, and the expansion of coupling and optical test workstations is forming a second growth curve.

Decisive Battle for Mass Production Yield

Precise "optical coupling" becomes key

With silicon photonics technology moving towards mass production, the focus of competition in the supply chain has shifted to the replicability and yield of manufacturing processes. Among these, the speed, accuracy, and stability of optical coupling directly affect the adoption speed and scale-up of high-speed optical transceiver modules. GMT with its self-integrated capabilities in precision mechanisms, motion control, algorithms, and closed-loop systems, has successfully engineered and standardized the "light finding-alignment-light locking" process, helping customers shorten mass production ramp-up time.

In terms of product portfolio, GMT supports the pose control precision required for mass production workstations with six-axis stacked modules, subsystems, and solutions (including the Stewart platform); and it enters the silicon photonics transceiver module process with active optical coupling equipment. As the verification and mass production pace of SiPh/NPO and future CPO accelerates, GMT is expected to upgrade from a single-unit supplier to a standardized workstation supplier, driving a simultaneous increase in average order value and shipment volume.

Deepen technical dialogue

Showing next-generation mass production solutions

To deepen global technology dialogue, GMT will participate in OFC 2026 (March 17-19, Los Angeles Convention Center, Booth: 4723), the world's leading optical communications event. Under the theme of "Silicon Photonics High-Precision Coupling Solutions," GMT will showcase solutions for high-precision optical coupling, active alignment, and wafer-level testing, fully supporting the mass production needs of high-speed switches and next-generation optical engines, demonstrating its technological strength as a key driver in the AI ​​data center supply chain.

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