AAOI 800G/1.6T Optics Ramp
Key Questions
What is AAOI's production ramp plan for 800G/1.6T optics?
AAOI plans to ramp 800G/1.6T optics production to 500k units per month by end-2026, with demand extending to mid-2027. This is driven by 800G transceivers becoming the largest contributor to its data center revenue.
How does US expansion benefit AAOI?
AAOI's US expansion de-risks supply chain issues related to China amid growing demand. It supports scaling production for 800G/1.6T optics to meet data center needs.
What impact does Google's TPU v8 have on optics demand?
Google's TPU v8 boosts demand for 1.6T optics at 2.5-3 per TPU, shifting hardware ecosystems through optical modules and liquid cooling. This contributes to a TrendForce-projected $26B transceiver market growing 57% to 2026.
To 500k units/mo end-2026, demand to mid-2027; US expansion de-risks China; TPU v8 boosts 1.6T (2.5-3/TPU), Chinese suppliers surge; TrendForce $26B transceiver market +57% to 2026 vs Ciena/Coherent.