Zhongji Innolight Refutes Rumors of Steep Price Drops for 1.6T Optical Modules
Zhongji Innolight refuted market rumors of a steep price drop for 1.6T optical modules, stating that its average selling price (ASP) remains high and the industry is not experiencing malicious price competition. The company emphasized that overall demand is very strong, raw materials are scarce, and only a few manufacturers are capable of large-scale delivery. As critical components in AI infrastructure and data centers, the pricing and supply stability of 1.6T optical modules directly impact the deployment costs of next-generation AI hardware. Zhongji Innolight's strong financial growth highlights the ongoing high demand for high-speed optical interconnects in the AI era. Zhongji Innolight reported a 192.12% year-on-year revenue increase to 19.496 billion RMB in Q1 2026, with high-speed optical modules accounting for 94.6% of this total. The company is currently the world's largest provider of silicon photonics optical modules by revenue.
## BACKGROUND
Optical modules are devices that convert electrical signals to optical signals and vice versa, enabling high-speed, low-latency communication between servers and switches in data centers. Silicon photonics is an emerging technology that uses silicon as an optical medium to transmit data using light, which is crucial for meeting the bandwidth demands of modern AI workloads.