Global Optical transceivers Raising 1

Equity Research 7 September 2026 | 1:42AM HKT

Raising 1.6T and above shipment by 29% / 61% / 50% for 2026-28E; continuous mix upgrade ahead

We are constructive on the optical transceiver growth ahead, supported by the Allen Chang | growing AI infrastructure spending driving demand, product mix upgrade towards Goldman Sachs (Asia) L.L.C. high-speed transmission (800G/ 1.6T/ 3.2T), and the rising adoption of optics in Verena Jeng connection with the increase of the server port rate. In this report, we raised the | Goldman Sachs (Asia) L.L.C. global optical transceiver shipment by 21%/ 31%/ 31% for 2026-28E, 800G+ shipment by 31%/ 39%/ 36% for 2026-28E, and 1.6T+ shipment by 29% / 61% / James Schneider, Ph.D. | 50% for 2026-28E to reflect higher shipment of rack-level servers/ ASIC servers, Goldman Sachs & Co. LLC higher usage of optical modules per GPU chip, and specification upgrade. Read Ryo Harada more on our latest views: Optical networking thematic; Server TAM update; FOCI | Goldman Sachs Japan Co., Ltd. initiation; Optical top 3 debates. Daiki Takayama | In 2026/27/28E, we expect the global optical transceiver market to reach Goldman Sachs Japan Co., Ltd. US$68bn/131bn/148bn, respectively, with 800G and above segment increasing at a Anmol Makkar +69% CAGR to reach US$45bn/ 108bn/ 130bn. We expect 800G/1.6T shipment | volumes at 45m/33m units in 2026E, growing to 49m/71m in 2027E, with 3.2T Goldman Sachs & Co. LLC

shipment ramping up to 23m/ 68m in 2027/ 28E. In our view, Silicon photonics will Ting Song | account for 60%/ 80%/ 80% of 800G/1.6T/3.2T optical transceivers. Goldman Sachs (Asia) L.L.C.

Yifan Hu Within the optical transceivers supply chain, we are Buy rated on (1) Optical | Goldman Sachs (Asia) L.L.C. transceiver or engines makers: Eoptolink, FOCI; (2) CW lasers or Epiwafer suppliers: Landmark, VPEC; (3) Equipment: RoboTechnik. Hiroki Muramatsu | Goldman Sachs Japan Co., Ltd. Related reports: Mitsuhiro Icho | Global Server: Raising both AI and General servers; better mix and higher memory Goldman Sachs Japan Co., Ltd. costs drive CSP spending (Jun 24, 2026)

GLOBAL OPTICAL TRANSCEIVERS: Raising 800G and above shipment by 14% / 29% / 33% for 2026-28E; AI to drive growth ahead (Apr 17, 2026)

Global Optical transceivers: Raising value TAM by 43% / 46% in 2026-27E with 800G / 1.6T at 38m / 14m units in 2026E on AI trend (Jan 8, 2026)

Global Server: ASIC servers expanding; AI full racks see diversifying chip platform (Jan 4, 2026)

Global Optical transceivers: TAM introduced; rising 800G / 1.6T driven by growing AI servers infrastructure (Dec 13, 2025)

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Global Optical transceivers

Global Server: 2027E estimates introduced; Raising baseboard-based AI servers with rising ASIC penetration (Sep 27, 2025)

Global Switch: Raising TAM on higher AI Data Center Switch ASP; Global Switch TAM to grow at 21% CAGR in 2025-27E (Nov 17, 2025)

TAIWAN TECHNOLOGY: Silicon Photonics / CPO: LandMark and VPEC the early beneficiaries of 800G / 1.6T upgrade; Initiate with Buys (Feb 13, 2025)