OPTICAL TRANSCEIVER PCBs: MS highlighting ZDT $4958 TT as beneficiary of team's recent upward revision of optical transceiver TAM. Will gain share due to technical ability & capacity to make the denser, more complex mSAP PCBs needed for 800G/1.6T transceivers, which command 2-4x the ASP of 400G. Worried about CPO pushout? Pluggable demand will remain strong.

OPTICAL / CPO Negativity: Optical names didn't get much boost from Computex and are underperforming during the correction. Some negativity on CPO rollout related to manufacturing yields noted by MS today. Not what the names needed (admittedly, CPO not directly relevant for all). FOCI $3363; LANDMARK $3081; SANTEC $6777; FURUKAWA $5801; SEI $5802; YOFC $6869

Chinese optical transceiver maker Eoptolink Technology efforts to stockpile key components to meet booming AI demand and guard against supply constraints sent the value of its inventory 61% higher in the first half

Silicon Photonics' optical transceiver market share is estimated to exceed 50% by 2027. $TSM VP of Advanced Packaging said today that silicon photonics is becoming the mainstream form thanks to the structural transformation of optical transceivers. He also stated that the real bottleneck for large-scale deployment lies in lasers, optical fibers, fiber optic connectors, and product testing. If I was to pick the "main" players instead of just name-dumping: - $LITE / $COHR: InP lasers - CW for SiPh, ELS for CPO, 200G EMLs - $AEHR: SiPh WLBI testing - $GLW: PM fibre, fibre arrays & MPO/MTP connectivity - Sumitomo Electric (5802): InP lasers + substrates Obviously you've got a ton of other names from: $AAOI for InP lasers, $IQE for InP base epi, $BESI for hybrid bonding and $KEYS / $VIAV for optical test. Feels like TSMC have been running the same narrative alongside the COUPE roadmap for a while now though. But always good to get some re-confirmations on where everyone's favourite bottlenecks sit / narratives coming from TSMC themselves.