MicroLED concept surges, Vogt Photonics hits the daily limit, and Huaxing Yuanchuang and others rise sharply

MicroLED concept fluctuated and rose during the trading day on the 11th. As of the latest report, Huaxing Yuan Chuang increased about 17%, Huacan Optoelectronics rose over 10%, Vog Photonics hit the daily limit up, Zhaoti Co. rose over 9%, and Jufei Optoelectronics increased about 7%.

In the industry, since 2026, energy supply and consumption optimization have gradually become important development topics for computing infrastructure. According to TrendForce, with the rise of generative AI, data centers’ demand for high-speed transmission continues to grow. Micro LED CPO solutions have lower unit transmission energy consumption, which can significantly reduce overall energy use to 5% of copper cable solutions, making it a promising alternative due to its energy-saving advantages.

CITIC Securities pointed out that Micro LED CPO, based on CPO co-packaging technology, is the next-generation solution for silicon photonics CPO. It replaces the light source with self-emitting Micro LED chips, allowing direct current modulation switching. This enables higher interconnection speeds (large-scale array arrangement), greater integration, improved stability (more durable and capable of redundancy), and lower power consumption. It aligns well with the interconnection needs of future AI supercomputing clusters and is expected to accelerate mass deployment as the industry chain matures.

Compared to silicon photonics CPO, which is gradually entering mass production, Micro LED CPO is still in early-stage research and development. The main bottlenecks currently include Micro LED chip performance (switching frequency, lifespan, latency), optical coupling and precision, and substrate materials, which also need upgrades and optimization. Upstream and downstream collaboration is required to advance the solution. Some leading domestic manufacturers have already begun joint R&D and sample testing with downstream clients. Micro LED CPO solutions are expected to gradually enter deployment after 2027.

This organization believes that as the industry foundation matures, there are promising opportunities for Micro LED CPO. The core beneficiaries are focused on the upstream Micro LED chip industry. Key areas to watch include: 1) companies with leading Micro LED chip technology and production line layout; 2) companies with strong vertical integration advantages upstream and downstream. Other benefiting segments are also worth attention.