The AI computing boom has created a severe shortage of Faraday rotators, tiny but essential upstream components for optical modules, with demand more than double the supply. The Ethernet transceiver market was up 93% in 2024 and our latest estimates for 2025 suggest another 82% growth. The growth is once again limited by the production. TrendForce's recent research indicates that high-speed optical interconnects are now central to performance and scalability, especially as AI data centers grow into large clusters. The report predicts that worldwide shipments of optical transceivers of 800G and higher will hit 24 million units in. When supply chain disruptions hit, optical transceivers become the hidden bottleneck: ports go dark, rebuild timelines slip, and network risk rises. 8B) — a 755% YoY jump, the highest single-quarter profit in South Korean corporate history. It exceeded Samsung's entire 2025 full-year result. However, insufficient indium phosphide (IP) chip capacity has limited growth.
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