Computing Infrastructure Heating Up: Listed Companies Rush into Micro LED Blue Ocean

Securities Daily Reporter Liu Xiaoyi

As computing infrastructure booms, energy supply and consumption optimization have become hot topics. On March 12, the concept of Micro LED (next-generation self-emitting display technology) reignited enthusiasm. By the close of trading, BOE Huacan Optoelectronics Co., Ltd. (hereinafter “Huacan Optoelectronics”) saw its stock price rise over 13%, with Sanan Optoelectronics and Shenzhen Leiman Optoelectronics Technology Co., Ltd. among the top gainers. The previous trading day, this sector had already experienced strong gains, with Jiangxi Woge Optoelectronics Group Co., Ltd. and Bomin Electronics hitting the daily limit.

According to the latest survey by TrendForce, as generative AI rises, data centers’ demand for high-speed transmission continues to grow. The copper cable solutions previously used for short-distance transmission inside cabinets face severe challenges in transmission density and energy efficiency. In contrast, Micro LED CPO (co-packaged optical) solutions have lower unit transmission energy consumption, significantly reducing overall energy use to just 5% of copper cable solutions, making them a promising alternative for optical interconnects due to their energy-saving advantages.

“Compared to traditional copper cables, Micro LED CPO technology offers significant advantages in computing infrastructure. It can reduce unit transmission energy consumption to 5% of copper cable solutions, greatly lowering data center operating costs and aligning with energy-saving goals,” said Ding Shaojun, Chief Analyst at GKURC Industry and Economics Think Tank, in an interview with Securities Daily. In terms of transmission efficiency, this technology addresses the signal attenuation issues of copper cables at 400G/800G/1.6T high speeds, enabling nanosecond-level low-latency transmission and ensuring signal integrity. Additionally, the high integration advantage of Micro LED CPO can reduce space occupation and increase cabinet bandwidth density, perfectly fitting the needs of AI large model training and ultra-large-scale computing clusters for efficient, intensive construction.

The Ministry of Industry and Information Technology’s “Action Plan for Computing Power Interconnection and Interoperability” explicitly states that by 2026, a relatively complete standard, identification, and rule system for computing power interconnection will be established. In terms of facility interconnection, new high-performance transmission protocols will be promoted to enhance network interconnectivity among computing nodes.

According to a recent forecast released by Bank of America on March 10, as AI workloads demand higher performance from traditional copper conductors, the optical interconnect market size is expected to quadruple by 2030, reaching $73 billion.

Under the industry trend of “optical replacing copper” in computing infrastructure and supported by policies, the market has high expectations for new applications of Micro LED technology in AI computing power. Listed companies are seizing the technological opportunity to extend Micro LED technology into the optical communication field.

Huacan Optoelectronics is a core player in the Micro LED optical interconnect field, leading in technology R&D and product deployment. In January this year, the company signed a strategic cooperation agreement with Shanghai Xinxiang Microelectronics Co., Ltd., leveraging both “chip manufacturing + driver design” advantages to focus on the development and production of Micro LED optical interconnect technology and optical modules.

“Aiming to develop Micro LED optical interconnect technology and optical modules, our Zhuhai Jinwan Micro LED factory has already begun collaborative technical development with industry partners. The first batch of samples has been delivered to overseas clients, and we are working with them to optimize products,” a securities department official from Huacan Optoelectronics told Securities Daily.

Leyard Optoelectronics Co., Ltd. is advancing its layout in Micro LED optical communication through industry-university-research collaborations and technological reserves. On March 10, the company stated during investor relations activities that it has partnered with the Chinese Academy of Sciences for R&D in optical communication and has supplied MicroLED optical modules to replace traditional LED optical transmission solutions, which are still in the R&D verification stage.

On the evening of March 12, Shenzhen Zhaochi Co., Ltd. announced that its Micro LED light source chips for Micro LED optical interconnect CPO technology have completed development and are currently in sample verification testing.

CITIC Securities’ research report believes that, compared to silicon photonics CPO, which is gradually entering mature mass production, Micro LED CPO is still in early-stage R&D exploration. The main bottlenecks currently include Micro LED optical chip performance, optical coupling, and precision, as well as substrate material upgrades. Upstream and downstream collaboration is needed to advance the maturity of the solution. Some leading domestic manufacturers have begun joint R&D and sample delivery with downstream clients, and it is expected that Micro LED CPO solutions will gradually enter the implementation stage after 2027.