Serenity: AI Optical Communication Demand Surge, Laser and Photonics Supply Chain Shortage Expected to Last for Years

BlockBeats News, August 19, Serenity announced that with the accelerated construction of AI infrastructure, the optical communication industry chain is facing a severe supply and demand imbalance. Key components such as lasers, TIAs, and DSPs continue to surpass supply capabilities, and the photonics industry may be entering a supercycle similar to the storage industry.

Serenity stated that recently, the performance of optical communication companies such as LITE, MTSI, and AAOI has all shown that the demand for AI-driven optical modules is rapidly increasing, leading to significant supply chain tightness.

At the Elazr Investor Conference, the company's general manager stated that the current optical supply still lags far behind market demand, and the shortage in the AI optical communication supply chain is expected to continue for the next several years.

It was pointed out that the entire supply chain is currently experiencing shortages, with supply capabilities unable to meet market demand. The shortage not only exists in laser chips but also involves multiple AI infrastructure links such as PCBs, substrates, and packaging.

Serenity believes that as the visibility of AI industry demand extends into the next several years and the supply chain continues to be constrained by capacity bottlenecks, the photonics industry may be replicating the supercycle seen in the storage industry, extending until 2027 or even longer.