AI bottleneck-breaker: China’s Huawei touts high-speed optical module

Chinese tech giant Huawei Technologies showcased a groundbreaking high-speed optical module at the China International Optoelectronic Exposition (CIOE), aiming to break AI infrastructure bottlenecks. The Shenzhen-based company presented the industry's first 7.2-terabit-per-second (Tbps) near-packaged optics (NPO) product, which outperforms traditional copper wiring by using light-based signals to transmit massive data volumes between AI processors at higher speeds and lower power consumption.

Huawei's NPO module replaces conventional copper connections with optical components close to network switching chips, reducing electrical connections, signal loss, and power consumption. By concentrating 36 channels operating at 200 gigabits per second each, the module achieves an aggregate bandwidth of 7.2Tbps, placing it among emerging high-density optical interconnect products for AI systems. Broadcom has also developed a 6.4Tbps optical engine for co-packaged optics.

Man Jiangwei, director of Huawei's advanced optoelectronics laboratory, stated that the company is now in the product development stage and anticipates rapid transition to volume production once the supply chain and manufacturing system is established. However, the absence of unified industry standards remains a significant obstacle to commercializing NPO at scale, as component makers, equipment suppliers, and chipmakers currently utilize different designs.

To address this issue, Huawei is actively participating in shaping these emerging specifications. While standard-setting typically takes 18 to 24 months, strong industry participation is accelerating the process. Huawei expects 3.2Tbps NPO modules to see real-world deployment this year, with 7.2Tbps versions gaining traction over the next two years as supply chains mature.

Chinese manufacturers currently dominate the global optical transceiver supply chain, supplying nearly two-thirds of global optical transceivers by volume and accounting for around 60% of optical data communications transceiver revenue in 2025.