On February 11th, a screenshot circulated widely on social media, claiming that the order process for optical module companies had changed. The rumor suggested that Cloud Service Providers (CSPs) were bypassing companies like Zhongji Innolight by placing orders directly with upstream laser equipment manufacturer Lumentum. According to the claim, Lumentum would then designate module/assembly plants for production, thereby skipping intermediate layers and compressing the profit margins of Chinese module manufacturers. Zhongji Innolight responded via an interactive platform, stating that optical module products are custom-developed and designed by module manufacturers according to CSP clients' data center network requirements. This process requires manufacturers to possess efficient R&D capabilities, mature manufacturing processes, sufficient production capacity, and large-scale manufacturing and delivery capabilities. Furthermore, manufacturers must pass rigorous CSP client testing, qualification certification, and factory audits before becoming qualified suppliers in the CSP supply chain. Therefore, the company clarified that CSP clients place orders directly with Zhongji Innolight, which then manufactures and delivers the products directly to the clients. This business model has not changed. The scenario described in the rumor, where CSPs place orders with upstream optical chip manufacturers who then bypass companies like Zhongji Innolight and reassign orders to designated module/assembly plants, does not exist.
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