As views spread that the adoption of optical-electrical convergence technology could help solve power constraints in the AI era, new product developments by U.S. companies and related Japanese stocks are attracting attention.
The practical application and broader adoption of “optical-electrical convergence” technology, which switches information transmission to optical signals to curb power consumption at AI data centers, is expected to gather pace from 2027 onward. As supply and demand conditions in data centers attract attention, stocks related to optical-electrical convergence are drawing interest from the market.
Major U.S. companies are moving ahead with mass production and new product launches for network switches based on co-packaged optics, raising expectations for expanding business opportunities in optical-electrical convergence technology. In Japan, NTT has positioned optical-electrical convergence devices as a core technology in promoting IOWN, while optical communications companies including Sumitomo Electric Industries, Furukawa Electric and Fujikura continue to build up their underlying technologies.
Among Japanese companies, Shin-Etsu Chemical is moving forward with the supply of SOI wafers, while Tokyo Ohka Kogyo is developing semiconductor processes using UV nanoimprint technology, driving expectations for increased demand for related materials and equipment. Dexerials, QD Laser, KOHOKU KOGYO, Seiko Giken, Optorun and Sigma Koki are also strengthening product and technology development in the optical-electrical convergence field, and CPO-related new products and mass production are expected to advance.