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From AI Chatbots to CPO: How Communications Technology Helps the World to Change

HONG KONG, Aug 8, 2023 - (ACN Newswire) - In February 2023, ChatGPT, OpenAI's text-generating AI chatbot, has taken the world by storm. The number of users exceeded 100 million in just two months, making it the fastest software ever to have 100 million active users. Microsoft and Google have also launched New Bing and Bard to follow the tide.

According to the analysis AI and Compute published by OpenAI, since 2012, the amount of compute used in the largest AI training runs has been increasing exponentially with a 3.4-month doubling time (by comparison, Moore's Law had a 2-year doubling period). Since 2012, this metric has grown by more than 300,000x (a 2-year doubling period would yield only a 7x increase).

With the explosive growth of computing power and data demand, the evolution of traditional pluggable optical module technology is challenging to support the sustainable development of data centers in the context of high computing power. Therefore, more advanced co-packaged optics (CPO) technology has been brought to the stage to cope with the rapid growth of computing power demand.

CPO technology is an advanced heterogeneous integration of optics and silicon on a single packaged substrate. The transmission rate will be increased by more than eight times to cater for the increasing data processing demand.

Top tier companies are gradually become in need of CPO product. The demand on 800G optical module reached over 7,000,000 in May this year, as Nvidia and Google have updated their demand planning guidelines for 800G optical modules in 2024.

In China, the state has issued a series of policies to support the development of CPO technology. In addition, the stock market also reflected real emotion with China's CPO concept stocks performing extremely well in the first half this year. The most significant increase was Linktel Technologies, with a cumulative soar of 768.83% in 1H2023.

HGtech and Cambridge Industries Group (CIG) are companies marching into the CPO industry. HGtech is currently developing 200G and 400G optical module before looking into 800G optical module and CIG just began to small produce 800G optical module and schedule to deliver more in the rest of the year to cope with their customer needs.

Another example goes to Luxshare Precision, which is well-known for manufacturing iPhone and AirPods for Apple. In addition to the consumer electronics sector, the communications sector has also been its main focus.

Luxshare Precision has been tapping into various communication technologies, including the above-mentioned CPO technology. Its 400G optical modules have already been put into mass production. Meanwhile, its 800G silicon optical modules are being shipped in small quantities. With the advantages of low power consumption, high reliability, high yield and low cost, Luxshare Precision wins a leading position in CPO technology globally.

In 2012, Luxshare Precision entered the communications market through the acquisition of Keertong Industrial. In 2021, the acquisition of TIME Interconnect helped Luxshare Precision further improve its product portfolios of the communications business. Benefiting from the increasing demand, Luxshare Precision's communication business revenue for the first time exceeded RMB10 billion, to RMB12.834 billion, showing a year-on-year increase of 292.55%.

Equipment and data center are two sections that Luxshare Precision is now focusing on in the communications segment. For the equipment segment, Luxshare Precision has been able to realize technological iteration and comprehensively enhance its ability to empower customers' value by relying on the precision manufacturing capabilities cultivated from small nano-scale components in the consumer electronics field, as well as a thorough understanding of acoustic, optical, electric, thermal, magnetic and radio frequency.

For the data center segment, Luxshare Precision, through its advantages in high-speed transmission and its current forward-looking layout in heat transfer, continues to enhance its ability to provide comprehensive solutions in multiple categories.

On top of its existing technology as well as products, R&D innovation is always in the important position of enterprise development, and the company has invested a total of RMB20.834 billion in R&D in the past three years. In terms of R&D achievements, Luxshare Precision has accumulated 4,526 invention patents, an increase of 46.47% compared to the end of 2021.

The steady growth of R&D investment and the continuous enhancement of technology accumulation will certainly help Luxshare Precision achieve breakthroughs in digital applications.

In the recently announced 2023 Fortune Global 500 released on Wednesday, Luxshare Precision appeared on the list for the first time. Meanwhile, it also ranked 138th on Fortune China 500 this year. In addition, Luxshare Precision has been included in the list of Top 50 Forbes China Most Innovative Companies 2022, by virtue of its continuous innovation and leading technology.

It is obvious that Luxshare Precision, with its strong R&D capabilities and achievements in the communications segment, is well-positioned to maintain sustainable growth and achieve a new level.




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