China: AI boom turbocharges growth of optical communications sector in China.

Storyline AI boom turbocharges growth of optical communications sector in China Optical communications companies in east China's Suzhou City are seeing unprecedented demand as the global AI infrastructure build-out continues. This major semiconductor firm in the Suzhou New District, an emerging tech hub, is running around the clock to ensure timely delivery of optical communication chips. Li Shunfeng, deputy director, Suzhou Changguang Huaxin Semiconductor Laser Innovation Research Institute： "Downstream demand is growing at an extraordinary pace, so we're allocating more capacity to optical chips. This year, we've bolstered our research and development and production teams and are actively scaling up our facilities." The company, like others, is also upgrading its own equipment, which is creating demand upstream for the machines and systems that make the chips. This manufacturer produces AI-powered inspection systems for precision optical components. Inside their factory, a fresh batch of newly assembled vision measuring machines was being packed and readied for delivery. Xu Xin, technical director, Suzhou TZTEK Technology Co., Ltd.： "Our monthly shipments are around 300 units. In the optical communications sector, demand has more than doubled." In March, at the annual Semicon China industry expo, experts predicted that China's manufacturing capacity for chips will reach 37 percent of the global output by the end of this year and 42 percent by ⁠2028. [Restrictions: No access Chinese mainland]