On August 6, a research report released by CITIC Securities highlighted that the swift advancement of AI technology in 2023 has been a key driver behind the technological upgrade of optical modules. Innovations such as accelerated optical chip speeds, the integration of silicon photonics, and the adoption of CPO architecture have collectively spurred the need for upgraded testing equipment for optical modules. Concurrently, the rapid expansion of AI computing infrastructure has resulted in a parallel surge in both the demand for and pricing of optical module testing equipment. At present, while international manufacturers continue to enjoy a competitive edge in the 1.6T high-end market segment, domestic companies are diligently working to bridge the gap, which is progressively narrowing. CITIC Securities maintains a positive outlook on the long-term growth prospects of the domestic optical module industry and is optimistic about the ongoing trend of import substitution in high-end optical module testing equipment.