The Micro LED optical module concept has emerged as a prominent theme, with related stocks experiencing a surge in trading activity. As generative AI advances, data centers face increasing demands for high-speed transmission. Traditional copper cable solutions for short-distance intra-rack transmission now encounter significant challenges in transmission density and energy efficiency. In contrast, Micro LED CPO solutions offer substantially lower energy consumption per unit of transmission, potentially reducing overall power usage to just 5% of copper-based systems, positioning them as viable alternatives for optical interconnects due to their energy-saving advantages.
On Thursday, the A-share market showed moderate overall gains, with the most notable development being the rise of the Micro LED optical module theme. According to the latest survey by TrendForce, AI data centers' growing need for high-speed transmission is intensifying pressure on copper cable solutions for intra-rack short-distance transmission, particularly concerning transmission density and energy efficiency. Micro LED CPO solutions, with their lower energy consumption per unit, could cut total power usage to 5% of copper-based alternatives, making them strong candidates for optical interconnect replacements.
Stimulated by these positive developments, several Micro LED industry chain-related stocks saw significant gains, including Huacan Optoelectronics (300323), Jufei Optoelectronics (300303), Lianjian Optoelectronics (300269), Longteng Optoelectronics (688055), Jucan Optoelectronics (300708), Tongguang Cable (300265), Leiman Optoelectronics (300162), Absen (300389), Ruifeng Optoelectronics (300241), Meditek (688079), Zhaochi Co., Ltd. (002429), Nationstar Optoelectronics (002449), Aoto Electronics (002587), Sanan Optoelectronics (600703), Tongxingda (002845), Woge Optoelectronics (603773), Xinruida (002983), Yashi Optoelectronics (002952), TPV Technology (000727), Huasu Holdings (000509), Shenfang Textile A (000045), Huaying Technology (000536), and O-Film (002456).
The new generation of optical interconnect solutions, known as Micro LED CPO, has driven collective surges in related A-share stocks. TrendForce's latest research indicates that with the rise of generative AI, data centers require higher transmission speeds, exposing limitations in copper-based intra-rack solutions. Micro LED CPO, with its superior energy efficiency, is poised to become a key alternative.
As generative AI expands rapidly, data center transmission needs are accelerating toward the 1.6T/3.2T era. Current data center link technologies must balance transmission distance, power consumption, and reliability. Copper cables offer high efficiency and reliability but limited transmission distance. As bandwidth rates increase, copper faces greater challenges. Traditional laser-based optical links provide longer distances but at the cost of higher power consumption and lower reliability. This trade-off becomes more pronounced with rising network speeds, creating a bottleneck for future scalability.
Recent reports highlight a breakthrough optical transmission solution—MOSAIC—developed by a Microsoft research team and Microsoft Azure. This innovation addresses the limitations of both copper and laser solutions, enabling long-distance transmission, low power consumption, and high reliability simultaneously, potentially reshaping data center interconnects.
Micro LED CPO integrates Micro LED chips with AI computing chips (such as ASICs) using advanced packaging technology. By replacing traditional copper cables or lasers with Micro LED light sources, it enables chip-level optical signal transmission, overcoming physical limits of conventional optical modules and meeting AI data centers' demands for high density, low latency, and low power consumption.
Industry experts note that Micro LED CPO co-packages micron-scale Micro LED light sources with ASIC/GPU/CPU chips, facilitating short-distance, high-speed optical interconnects within chips or racks. Its core architecture, Wide and Slow (WaS), was systematically introduced by Microsoft Research in August 2025 as part of the MOSAIC solution at the SIGCOMM conference.
Advantages of Micro LED solutions include a 68% reduction in power consumption compared to existing laser solutions, transmission distances of up to 50 meters (meeting AI server rack requirements), and resolving reliability issues associated with optical solutions while overcoming the short-distance limitations of copper. Essentially, it offers a balanced and efficient alternative between optical and copper technologies.
Crucially, Micro LED CPO provides higher port density while maintaining low power consumption. Due to their small size, hundreds of Micro LED emitting units can be integrated on a single chip, enabling Tbps-level aggregate bandwidth output per unit area, freeing up valuable physical space in increasingly crowded switch panels.
Tianfeng Securities notes that current data center link technologies require fundamental trade-offs between transmission distance, power consumption, and reliability. While copper cables are efficient and reliable, their transmission distance is limited. Micro LED optical module solutions may break this impasse. Citing Microsoft's MOSAIC optical interconnect solution as an example, Tianfeng believes it can achieve long-distance transmission, low power consumption, and high reliability concurrently.
TrendForce points out that the global supply chain is actively advancing in optical communication and interconnect fields. Besides Microsoft's MOSAIC architecture, Credo's acquisition of Hyperlume strengthens its optical interconnect capabilities, while Avicena's LightBundle technology improves data transmission efficiency and power performance. Since 2025, market demand has pushed transmission specifications to 800Gbps and 1.6Tbps. With traditional copper cables consuming over 10pJ/bit, system-wide energy usage increases significantly, accelerating the industry's shift from copper to optical solutions.
Feedback from the industry indicates that several leading LED chip manufacturers and optical module companies are collaborating on preliminary research, optimizing Micro LED epitaxial structures, CMOS drive circuit design, and wafer-level packaging processes. Although mass production yield and reliability validation require further refinement, Micro LED CPO's energy efficiency advantages position it as a strong contender for next-generation intra-rack optical interconnect solutions.
As application scenarios expand, market expectations for Micro LED's potential are optimistic. According to Omdia, Micro LED display revenue reached $52.4 million in 2025 and is projected to grow to $105 million in 2026, a 100% year-on-year increase.
TrendForce predicts that the market value of Micro LED display application chips will rise rapidly from its 2024 base, reaching $740 million by 2029, with a compound annual growth rate of 93% from 2024 to 2029.
Amid these positive developments, Micro LED industry chain-related stocks experienced significant gains. Furi Electronics' subsidiary, Meray Optoelectronics, focuses on Micro LED technology and has comprehensively positioned itself in the mainstream Micro LED market. As a key listed company in the Micro LED industry chain, it warrants close attention.
Founded in 2006, Meray Optoelectronics specializes in full-color LED displays for outdoor advertising, sports venues, and stage performances. It is a national high-tech enterprise integrating R&D, production, sales, and engineering. In 2013, Meray became a subsidiary of Furi Electronics, gaining access to a complete LED industry chain from chips to downstream applications, enhancing its capital and resource advantages.
Meray has since expanded its production capacity and scale, establishing a 62,000-square-meter production base in Huizhou equipped with high-speed SMT lines and advanced intelligent production and testing equipment. With over a decade of experience in product development, Meray has won numerous awards, including the Red Dot Design Award and iF Design Award. It prioritizes market demand and customer needs, producing innovative display solutions.
Focusing on MiniLED, MicroLED, 5G+8K, and naked-eye 3D creative display technologies, Meray has accumulated more than 400 patents. Its products serve diverse applications such as advertising, stage performances, sports venues, broadcasting, and big data visualization. As one of China's top ten LED display brands, Meray operates in over 100 countries and regions, with over 2,000 successful projects, gaining international recognition at events like the World Beach Volleyball Tour, World VR Industry Conference, and the Guangzhou Asian Games.
Furi Industrial Development Co., Ltd., a wholly-owned subsidiary of Furi Electronics, holds a 100% stake in Huizhou Meray Optoelectronics, which in turn holds a 69.59% stake in Shenzhen Meray Optoelectronics.
In 2025, Meray showcased innovative products at the ISE 2025 exhibition in Barcelona, highlighting its technological advancements. The company is also targeting overseas markets, with offices established in the United States, the Netherlands, and Saudi Arabia. Its sales network now covers more than 100 countries and regions, with service systems extending across Europe, America, Asia, and Africa.
Notably, the Shenzhen municipal government emphasizes industry standards, supporting LED products as a key area. To promote healthy industry development and technological innovation, the Shenzhen Lighting and Display Engineering Industry Association initiated the Mini/Micro LED direct display module reliability testing method group standard. After multiple revisions and consultations, the standard was finalized in October 2024.
As China's first specialized standard for Mini/Micro LED direct display module reliability testing, it addresses market needs and has been widely recognized by government, industry, and academic institutions. Meray Optoelectronics participated in drafting this standard, reinforcing its commitment to Micro LED technology and market development.
In summary, Furi Electronics' subsidiary Meray Optoelectronics is firmly focused on Micro LED technology and has established a comprehensive presence in the mainstream Micro LED market.
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