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

Huawei Technologies has introduced a high-speed optical module capable of transmitting data at up to 7.2 terabits per second, potentially ending data centre bottlenecks and setting the stage for next-generation AI infrastructure. At the China International Optoelectronic Exposition this week, Huawei showcased what it termed as the world's first 7.2 Tbps near-packaged optics (NPO) product, a leap forward from traditional copper wiring.

By converting data into light-based signals, the module allows for quicker and more energy-efficient data transfer between AI processors. As AI clusters become increasingly complex with thousands of interlinked processors, conventional copper connections are facing bandwidth, distance, and power efficiency constraints. Huawei's solution involves packing optical components closer to network switching chips, which cuts electrical connections and minimizes signal loss and power consumption.

The company's director of advanced optoelectronics lab, Man Jiangwei, revealed that the module combines 36 channels, each operating at 200 gigabits per second, resulting in a total bandwidth of 7.2 Tbps. Huawei is currently in the product development stage, with production expected to ramp up swiftly once the supply chain and manufacturing system are fully established.

However, the lack of uniform industry standards poses a significant challenge in commercializing NPO at scale, as various stakeholders currently employ different designs. To address this issue, Huawei is actively working on shaping the necessary specifications. The company anticipates that 3.2 Tbps NPO modules will begin real-world deployment this year, with 7.2 Tbps versions gaining prominence over the next two years as supply chains mature.

Chinese manufacturers hold a dominant position in 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, according to a report by Counterpoint Research.