Morgan Stanley has released a research report stating that at the 2026 OCP Global Summit, ZJ INNOLIGHT (03308, 300308.SZ) presented its vision and roadmap for open optical interconnect solutions, highlighting three core products. The bank maintains its "Overweight" rating on ZJ INNOLIGHT, with an H-share target price of HK$1,385.
1) Open CPX MSA (pluggable CPO/NPO optical engines) defines standardized, connectorized pluggable co-packaged and near-packaged optical engine modules, with each slot capable of delivering up to 6.4-7.2T bandwidth. This addresses AI scale-up requirements for density, thermal management, and maintainability while reducing power consumption.
2) XPO MSA (12.8T ultra-high-density pluggable optical modules) features an integrated liquid cooling design, with a single module capable of supporting up to 400W power consumption. The module solutions cover fully retimed, half-retimed (RTLR), and LPO configurations.
3) Regarding SDM4 multi-core fiber (MCF) MSA, ZJ INNOLIGHT is collaborating with Corning, Sumitomo, and AFL to lead the development of the SDM4 standard, which is designed to address fiber routing congestion and excessive cable counts in AI scale-up and scale-out network architectures.
As for the industry's first USFP (ultra-small form factor pluggable) 400G per channel optical transceiver module unveiled at the summit, the bank believes that ZJ INNOLIGHT is well-positioned to become a key partner and capture a significant market share. The bank expects commercial production to commence from 2028 onwards.
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