Broadcom Extends Technology and Volume Leadership on AI Optical Components
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Insights
As the demand for AI and ML capabilities continue to grow, the need for high-speed optical interconnects becomes increasingly critical. Broadcom's announcement of expanded optical interconnect solutions, particularly the 200G per lane VCSEL and EML technologies, is a strategic move that aligns with industry trends towards faster and more efficient data centers. The production release of these components is poised to significantly enhance the bandwidth and density of interconnects, which is essential for supporting large-scale generative AI compute clusters.
From a market perspective, Broadcom's advancements are likely to reinforce its position as a market leader in the fiber optic components sector. The shipment of over 20 million channels of 100G/lane components and the transition to 200G/lane technology could potentially increase the company's market share and strengthen its competitive edge. As noted by LightCounting Market Research, the expected shipment volumes and the adoption by major players like Google and Nvidia underscore the growing market demand. This could translate to an increase in revenue streams for Broadcom and its integration partners.
Broadcom's financial performance is expected to be positively impacted by the launch of its 200G VCSEL and EML products. The transition from 100G to 200G technology represents a doubling of the per-lane capacity, which is likely to be well-received by customers looking to upgrade their AI and ML infrastructure. This technological leap forward could lead to an increase in sales volume as customers adopt the newer, more efficient modules.
Furthermore, the early adoption by industry giants such as Google and Nvidia could serve as a catalyst for other companies to follow suit, potentially leading to a broader market adoption. The financial implications for Broadcom are significant, as the company could secure a substantial portion of the market for next-generation optical transceivers. This technological advancement could also result in operational efficiencies, potentially improving Broadcom's margins over time.
Investors should monitor Broadcom's capital expenditures closely, as continued investment in research and development is essential for maintaining technological leadership. However, these investments must be balanced against the potential returns in order to assess their impact on the company's financial health.
The advancement in VCSEL, EML and CW laser technologies is a critical development for the future of optical networking, particularly in the realm of AI and ML applications. Broadcom's focus on 200G/lane technology is a response to the increasing demand for higher bandwidth and lower latency interconnects required by large-scale generative AI compute clusters. This is a significant leap from the previous 100G/lane technology and positions Broadcom at the forefront of the industry's move towards terabit connectivity.
The technical benefits of these advancements include greater interconnect density and efficiency, which are paramount for the deployment of next-generation AI applications such as large language models (LLMs). With generative AI becoming more prevalent, the network transformation highlighted by Broadcom's vice president, Near Margalit, indicates a market shift that will likely influence the technological trajectory of other players in the industry.
It is also important to consider the potential challenges associated with the adoption of these new technologies, such as compatibility with existing infrastructure and the need for customers to invest in upgrading their systems. Nonetheless, Broadcom's demonstrations at the upcoming OFC 2024 exhibition will likely serve as a significant marker for the industry's direction and the company's technological capabilities.
Industry-leading VCSEL, EML and CW laser technologies enable terabit connectivity and drive large-scale AI infrastructure
PALO ALTO, Calif., March 13, 2024 (GLOBE NEWSWIRE) -- Broadcom Inc. (NASDAQ: AVGO), the world’s leading provider of fiber optic components for optical networking and communications, today announced several major accomplishments extending its market leadership with an expanded portfolio of optical interconnect solutions for artificial intelligence (AI) and machine learning (ML) applications. Broadcom’s state-of-the-art optics technologies facilitate high speed interconnects for front-end and back-end networks of large-scale generative AI compute clusters.
Key Announcement Highlights:
- Production release of 200-Gbps per lane (200G/lane) electro-absorption modulated laser (EML) to pair with next generation GPUs
- Demonstration of the industry’s first 200G/lane vertical-cavity surface-emitting laser (VCSEL)
- Demonstration of continuous wave (CW) laser with high efficiency and high linearity for silicon photonics (SiPh) modulation at 200G
- Shipment of more than 20 million channels of 100G/lane high speed optical components used in AI/ML systems
VCSEL and EML technologies play a crucial role in enabling high-speed interconnects for AI and ML systems. Broadcom’s 200G VCSEL and EML products follow up on successful deployment of 100G/lane VCSEL and EML chips into first-generation generative AI networks and will provide unrivaled bandwidth and interconnect density for next generation interconnects. Both product families from Broadcom represent trusted and reliable technologies that will enable integration partners to use existing capacity as end users progress to 1.6T optical transceivers and usher in the era of terabit connectivity.
“Generative AI has unleashed a network transformation necessitating an order of magnitude increase in high-speed optical links compared to standard network requirements,” said Near Margalit, Ph. D., vice president and general manager of the Optical Systems Division at Broadcom. “We will continue to invest in VCSEL, EML and CW laser technologies to deliver disruptive innovation in bandwidth, power and latency for optical interconnects in next generation AI links.”
“We expect shipments of 8x100G optical transceivers to exceed 5 million units in 2024 and first 8x200G modules delivered to customers by the end of the year,” commented Dr. Vladimir Kozlov, founder and CEO of LightCounting Market Research. “Google and Nvidia will be the first adopters of 200G per lane optics for interconnecting GPUs and TPUs in AI Clusters – the hottest area of the market now. Broadcom is once again among the first suppliers of components enabling the next generation of optical transceivers.”
“Enterprises continue to demand larger AI clusters, elevating the importance of cutting-edge optical interconnects,” said Craig Thompson, vice president of LinkX products at NVIDIA. “NVIDIA is at the forefront of photonics innovation, and Broadcom has been an important optical-component partner, matching the pace and scale required as we advance our HPC and AI optical-interconnect technology.”
“At Innolight, we have been deploying leading-edge optical interconnect solutions for AI, ML and HPC applications,” said Osa Mok, chief marketing officer (CMO) at Innolight Technology. “We are excited to continue our partnership with Broadcom to develop advanced terabit optical modules for generative AI, enabling AI clusters to scale and support the next generation of LLMs.”
“Eoptolink is deeply invested in AI/ML optical transceiver technologies with a broad portfolio of advanced high-speed module offerings,” said Sean Davies, vice president of sales at Eoptolink Technology. “We are excited to partner with Broadcom to bring to market state-of-the-art solutions to enable terabit connectivity and drive new generative AI architectures.”
Demo Showcase at OFC 2024
Broadcom will showcase the following products and technologies:
- 200G VCSEL technology demonstration
- 200G EML product demonstration
- 200G SiPh modulation with CW lasers
- 100G VCSELs for emerging applications including server interconnect, PCIe interconnect and next generation Fibre Channel
These demonstrations will be in the Broadcom Booth 5325 at the Optical Fiber Communication (OFC) 2024 exhibition in San Diego, California from March 26th to 28th.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom's category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.
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Press Contact:
Khanh Lam
Corporate Communications
press.relations@broadcom.com
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