On June 19, according to the announcement of Bo Chuang Technology, the company intends to raise funds of no more than 80 million yuan from specific objects, and after deducting the issuance costs, it will be used for the annual output of 2.45 million silicon optical transceiver module technical transformation projects and the annual output of 300 thousand wireless bearer network digital optical module projects and supplementary working capital.

The company specializes in the research and development, manufacturing, sales and technical services of optoelectronic devices, focusing on the large-scale application of integrated optoelectronic devices. The company’s main products are all used in optical fiber communication networks, and the subdivision industry is the optoelectronic device industry, which is upstream of the optical communication industry chain.

In recent years, operators have become increasingly competitive. The design of fixed-line and mobile network convergence packages around broadband users is an important way for the three major operators to improve their market competitiveness. Fiber broadband will remain the focus of operators’ construction. Gigabit-fiber broadband access will become mainstream in the next three years.

Since 2018, the scale of 10G PON deployment by global operators has grown. It is expected that the global 10G PON deployment will continue to grow in the next five years. At the same time, the localization rate of my country’s 10G and above optical chips and electrical chips is still at a low level. In the context of domestic substitution, the company’s 10G PON optical module will have a larger market space.

The data center market is currently a core application area of optical modules. The internal equipment of the data center needs to use a large number of optical modules for internal interconnection or connection with external devices. In the short term, due to the impact of the epidemic and the Spring Festival, data traffic is growing rapidly, and the demand for game video, remote office, online education, etc. is rapidly growing, which puts forward higher requirements for data center expansion and computing power; in the long term, continuous traffic growth makes users’ requirements for data calculation, storage, transmission, and security assurance increasingly higher. The industry’s capital investment in servers, switches/routers, and optical modules will continue to increase.

On the other hand, the pace of 5G commercialization is accelerating. With reference to the construction cycle of 4G, it is expected that the peak of 5G base station construction will appear in 2020-2022. Heavy Reading predicts that global telecommunications operators will invest more than US$200 billion in 5G networks in the next five years. The optical module is the basic structural unit of the 5G network physical layer, and is widely used in wireless and transmission equipment. The rapid increase of network traffic continues to promote the speed-up and upgrade of the telecommunications network, and the demand for high-speed optical modules is very urgent.  Compared with data center optical modules, telecommunication optical modules have higher requirements on operating temperature range and air tightness, longer working life requirements, and greater difficulty in development, so the overall product value level is higher.

According to its emphasis, with the continuous expansion of the data center market and the large-scale deployment of 5G networks, the company’s optical module business will usher in huge development opportunities. The company adheres to the path of optoelectronic integration and device modularization, integration and miniaturization, and strives to become a leader in the manufacture and promotion of optoelectronic device products based on planar waveguide (PLC) and silicon photonics technologies.

At present, silicon photonics technology is still in the development stage. As a new entrant in the field of active devices, it is necessary for the company to surpass the leading companies in the industry through a new technology route. The funds raised from the issuance of specific objects will be used for silicon optical transceiver module technological transformation and other projects, which will help the company grasp the opportunity for the rapid development of silicon photonics technology and expand product capacity. Besides, the funds are also used to industrialize the products developed such as the data communication 100G, 400G silicon, optical transceiver modules and 25G silicon optical transceiver modules for wireless bearer networks to seize market share.