MicroLED technology is expanding from display applications into optical communications, overcoming limitations of traditional laser solutions and copper connections and now entering the industrial implementation phase. The total addressable market for MicroLED optical communication is projected to exceed ten billion US dollars. The application potential of MicroLED in optical communications is viewed positively, with more products expected to emerge by 2026 and gradual entry into mass production anticipated in 2027 and 2028.
The potential market size for MicroLED optical communication could surpass ten billion USD, benefiting upstream components such as MicroLED chips, optical lenses, multi-core fibers, and drivers, as well as upstream equipment and midstream packaging, testing, and manufacturing segments.
Key points are as follows: The MicroLED solution breaks through the constraints of conventional laser systems and copper interconnects, offering significant advantages in power consumption, reliability, cost, and transmission distance. As a communication light source, MicroLED employs a "wide and slow" architecture, utilizing hundreds of parallel low-speed optical channels, with each channel capable of achieving several Gbps modulation rates through simple on-off keying.
Based on MicroLED light sources, the power consumption of 1.6Tbps co-packaged optics products is expected to be reduced to approximately 1.6W, while 800G optical module power consumption could drop to 3-5W. This approach can eliminate some complex electrical chips, offering notable economic and power efficiency benefits. Transmission distances can reach several tens of meters, with reliability comparable to copper connections, supporting various packaging solutions such as pluggable, CPO, and on-board optics.
MicroLED optical communication technology is progressively moving toward industrial adoption, forming an ecosystem involving CSPs, LED manufacturers, and communication equipment providers. Leading international companies have already introduced products. Overseas, Avicena launched a single-channel 4Gbps communication solution in November 2025, followed by the world's first MicroLED optical interconnect evaluation kit in March 2026. Microsoft has proposed MOSAIC technology, collaborating with MediaTek to develop and release an 800G Active Optical Cable based on MicroLED. Credo plans to introduce an ALC innovative product category in fiscal year 2027, entering mass production ramp-up in FY2028. Marvell has invested in and is collaborating with MicroLED firm Mojo Vision on optical communication technology.
Domestic progress is rapid, with several MicroLED manufacturers having submitted samples for optical interconnect products. Companies including HC Semitek, ZhaoChi Co., Ltd., Leyard, and San'an Optoelectronics have developed related MicroLED communication products currently in the verification and testing phase. MicroLED light source devices produced by San'an Optoelectronics have achieved NRZ-OOK transmission rates exceeding 10Gb/s. The performance of some products from Chinese manufacturers is relatively close to that of leading international players, suggesting significant development opportunities for the domestic supply chain.
Risks include potential shortfalls in R&D progress, slower-than-expected market expansion, competition from alternative technological pathways, fluctuations in downstream demand, supply chain risks for equipment and materials, and intellectual property or patent disputes.
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