Industry News
1.6T Optical Modules Expected to Enter Mass Production in 2026?
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Author : JIUZHOU
Update time : 2025-04-25 10:07:34
1.6T optical modules will be put into commercial use in 2025 and are expected to enter mass production in 2026. The key technologies of 1.6T have made significant progress. The essence is that optical communication manufacturers are striving to meet customers' technical requirements for low power consumption, low latency, high density, etc.
In 2025, global CSP manufacturers will mainly use Ethernet switches with 800G and 400G optical modules. These switches will be used to build AI computing centers. This will drive strong demand for 800G and 400G optical modules.
In the field of AI, various industries have deepened their applications and reasoning needs. As a result, AI demand has greatly increased.
The demand for computing power is expected to keep increasing over the next two years. This will boost the demand for data communication optics and speed up the technology evolution cycle. On one hand, 800G demand is expected to reach 20 million units in 2025, driven by China and the United States.
In China, the 400G market will dominate, with Internet manufacturers' demand exceeding 14 million units. On the other hand, the optical module rate evolution cycle in traditional cloud computing is 3-4 years.
With AI computing power driving the change, this cycle shortens to 2-3 years.
1.6T is the next-generation mainstream rate node of optical communication after 400G and 800G. Driven by AI large models and cloud computing, data centers and AI computing clusters will lead. They will be the first to deploy 1.6T optical modules.
This trend will drive the early adoption of 1.6T optical modules in these sectors.
An optical module company reported that 1.6T product shipments in Q1 2025 were lower than expected. The company had anticipated higher shipment volumes for this period.
The company had anticipated higher shipments during this period. However, shipments will start to increase from the second quarter. Larger-scale deployment is expected to begin in the second half of the year.
According to a survey, although 2025 is the first year of official commercial use.
The volume of 1.6T optical modules will begin in 2026. In 2025, global demand for 1.6T optical modules will range from 500,000 to 1 million units. In 2026, 1.6T optical modules will be deployed on a larger scale, and global demand is expected to reach 5 million.
The growth in 1.6T demand is driven by increased investment from North American Internet companies. They are focusing on AI computing power and cloud computing infrastructure capital expenditure.
Key technologies of 1.6T
1.6T optical modules are a core component of next-generation data centers and AI computing power. They involve key technologies such as chip integration, signal processing, packaging, and material innovation.
At OFC 2024, 1.6T pluggable modules were still in early discussions. However, this year, they began to emerge in full force. Major optical communication manufacturers released various 1.6T optical module products, covering multiple key technologies.
This shows that 1.6T has reached a critical point for mass commercialization. Key technologies for 1.6T optical modules remain a hot topic in the industry this year.
As a core component of 1.6T optical modules, DSP has started using the 3nm advanced process. This supports higher signal integrity and meets AI accelerator requirements.On Coherent-lite, coherent DSP technology optimized for O-band. Fixed-wavelength DFB lasers and intradyne detection simplify system complexity and lower costs. They also support a transmission distance of 20 kilometers.
In the 1.6T ultra-high-speed era, reducing power consumption is the core focus of optical module development. Each iteration aims to lower power usage.
The low power consumption advantage of the LPO solution is highly valued by optical module developers. By simplifying the use of DSP (digital signal processing) chips, LPO directly drives optoelectronic devices. This approach reduces power consumption by 40% compared to traditional DSP solutions.
The 1.6T optical module will use the OSFP-XD package shape.This design supports more channels and higher modulation technology. It achieves a transmission rate of 1.6Tbps through an 8 or 16-channel design.
However, 1.6Tbps modules generally have high power consumption. To address this, OSFP-XD uses a metal shell, heat sink, or thermal conductive structure.
These features improve heat dissipation efficiency. Additionally, the OSFP-XD package is usually compatible with standard OSFP slots.
This compatibility enhances heat dissipation, optimizes signal integrity, and expands channel capabilities. As a result, OSFP-XD is an ideal packaging solution for 1.6T optical modules.
Innovations in new materials and manufacturing processes also provide more options for 1.6T optical modules.
The development of 1.6T optical modules is focused on four key areas:
Integration technologies (such as silicon photonics)
Advanced DSP processes
Multi-mode or coherent transmission architectures
Material innovation
Looking ahead, several trends are emerging. These trends include deeper integration of DSP and optical chips. Another trend is the wider use of sub-3nm manufacturing processes. In addition, manufacturers are beginning early-stage planning for 3.2T technology.
Manufacturers are choosing different technical paths based on specific application scenarios. Together, they are driving data centers toward higher density and lower energy consumption.
Some believe that 2025 will mark the beginning of 1.6T optical module commercialization.
This progress is largely fueled by the rising demand for AI computing power.
Technological breakthroughs are focusing on four key areas:
Integration (such as silicon photonics and photonic integrated circuits)
Advanced DSP processes
Multi-mode or coherent transmission architectures
New materials
Looking ahead, several trends are emerging. One is the further integration of DSP and optical chips. Another is the widespread adoption of processes below 3nm. Additionally, companies are beginning to lay out pre-research for 3.2T technology.
Manufacturers with these core technologies are expected to lead the market. Another opinion focuses on the end customers and switch manufacturers. Their main needs are low power consumption, low latency, and high device density.
For pluggable optical module makers, following customer preferences is critical.
If companies can drive innovation in optoelectronic products, they will gain more space in the future market.
It is believed that CPO and pluggable technologies will coexist. DSP and LPO will also continue to develop side by side. Silicon photonics and InP technologies are expected to evolve together as well.
In 2025, global CSP manufacturers will mainly use Ethernet switches with 800G and 400G optical modules. These switches will be used to build AI computing centers. This will drive strong demand for 800G and 400G optical modules.
In the field of AI, various industries have deepened their applications and reasoning needs. As a result, AI demand has greatly increased.
The demand for computing power is expected to keep increasing over the next two years. This will boost the demand for data communication optics and speed up the technology evolution cycle. On one hand, 800G demand is expected to reach 20 million units in 2025, driven by China and the United States.
In China, the 400G market will dominate, with Internet manufacturers' demand exceeding 14 million units. On the other hand, the optical module rate evolution cycle in traditional cloud computing is 3-4 years.
With AI computing power driving the change, this cycle shortens to 2-3 years.
1.6T is the next-generation mainstream rate node of optical communication after 400G and 800G. Driven by AI large models and cloud computing, data centers and AI computing clusters will lead. They will be the first to deploy 1.6T optical modules.
This trend will drive the early adoption of 1.6T optical modules in these sectors.
An optical module company reported that 1.6T product shipments in Q1 2025 were lower than expected. The company had anticipated higher shipment volumes for this period.
The company had anticipated higher shipments during this period. However, shipments will start to increase from the second quarter. Larger-scale deployment is expected to begin in the second half of the year.
According to a survey, although 2025 is the first year of official commercial use.
The volume of 1.6T optical modules will begin in 2026. In 2025, global demand for 1.6T optical modules will range from 500,000 to 1 million units. In 2026, 1.6T optical modules will be deployed on a larger scale, and global demand is expected to reach 5 million.
The growth in 1.6T demand is driven by increased investment from North American Internet companies. They are focusing on AI computing power and cloud computing infrastructure capital expenditure.
Key technologies of 1.6T
1.6T optical modules are a core component of next-generation data centers and AI computing power. They involve key technologies such as chip integration, signal processing, packaging, and material innovation.
At OFC 2024, 1.6T pluggable modules were still in early discussions. However, this year, they began to emerge in full force. Major optical communication manufacturers released various 1.6T optical module products, covering multiple key technologies.
This shows that 1.6T has reached a critical point for mass commercialization. Key technologies for 1.6T optical modules remain a hot topic in the industry this year.
As a core component of 1.6T optical modules, DSP has started using the 3nm advanced process. This supports higher signal integrity and meets AI accelerator requirements.On Coherent-lite, coherent DSP technology optimized for O-band. Fixed-wavelength DFB lasers and intradyne detection simplify system complexity and lower costs. They also support a transmission distance of 20 kilometers.
In the 1.6T ultra-high-speed era, reducing power consumption is the core focus of optical module development. Each iteration aims to lower power usage.
The low power consumption advantage of the LPO solution is highly valued by optical module developers. By simplifying the use of DSP (digital signal processing) chips, LPO directly drives optoelectronic devices. This approach reduces power consumption by 40% compared to traditional DSP solutions.
The 1.6T optical module will use the OSFP-XD package shape.This design supports more channels and higher modulation technology. It achieves a transmission rate of 1.6Tbps through an 8 or 16-channel design.
However, 1.6Tbps modules generally have high power consumption. To address this, OSFP-XD uses a metal shell, heat sink, or thermal conductive structure.
These features improve heat dissipation efficiency. Additionally, the OSFP-XD package is usually compatible with standard OSFP slots.
This compatibility enhances heat dissipation, optimizes signal integrity, and expands channel capabilities. As a result, OSFP-XD is an ideal packaging solution for 1.6T optical modules.
Innovations in new materials and manufacturing processes also provide more options for 1.6T optical modules.
The development of 1.6T optical modules is focused on four key areas:
Integration technologies (such as silicon photonics)
Advanced DSP processes
Multi-mode or coherent transmission architectures
Material innovation
Looking ahead, several trends are emerging. These trends include deeper integration of DSP and optical chips. Another trend is the wider use of sub-3nm manufacturing processes. In addition, manufacturers are beginning early-stage planning for 3.2T technology.
Manufacturers are choosing different technical paths based on specific application scenarios. Together, they are driving data centers toward higher density and lower energy consumption.
Some believe that 2025 will mark the beginning of 1.6T optical module commercialization.
This progress is largely fueled by the rising demand for AI computing power.
Technological breakthroughs are focusing on four key areas:
Integration (such as silicon photonics and photonic integrated circuits)
Advanced DSP processes
Multi-mode or coherent transmission architectures
New materials
Looking ahead, several trends are emerging. One is the further integration of DSP and optical chips. Another is the widespread adoption of processes below 3nm. Additionally, companies are beginning to lay out pre-research for 3.2T technology.
Manufacturers with these core technologies are expected to lead the market. Another opinion focuses on the end customers and switch manufacturers. Their main needs are low power consumption, low latency, and high device density.
For pluggable optical module makers, following customer preferences is critical.
If companies can drive innovation in optoelectronic products, they will gain more space in the future market.
It is believed that CPO and pluggable technologies will coexist. DSP and LPO will also continue to develop side by side. Silicon photonics and InP technologies are expected to evolve together as well.
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