Application Layout and Business Potential of Our Fusion Splicing Products

The explosion of generative AI represented by ChatGPT has driven exponential growth in global computing power demand. According to IDC forecasts, global AI computing power expenditure will exceed $150 billion in 2026. This boom has not only fueled the iteration of upper-layer technologies such as GPUs and large language models, but also extended to the underlying optical connectivity infrastructure. From high-density cabling in AI data centers, high-power laser supporting systems in high-end manufacturing, to ultra-large-capacity optical transmission for cross-regional computing power scheduling, brand-new requirements have been put forward for optical fiber fusion splicing technology.

With more than ten years of deep cultivation in the fiber fusion splicing industry, Shinho has become a key force supporting the upgrading and innovation of AI infrastructure through our full range of high-end fusion splicing equipment, while exploring vast new market opportunities in the process.

I. Upgrading of AI Infrastructure Drives Surge in High-End Splicing Demand

The core of AI lies in the massive flow of computing power and data. Inside and between hyperscale data centers and intelligent computing centers, unprecedented high-density and large-capacity optical fiber cabling is required. SHINHO's products possess direct and critical application value in this field:

1. Ribbon Fiber Fusion Splicer: The Core of High-Density Cabling in AI Data Centers

The training and inference of large AI models have triggered explosive growth in east-west traffic within data centers. Data exchange between GPU clusters has far exceeded the north-south traffic in traditional data centers, imposing extreme demands on cabling density and deployment efficiency. Traditional single-core fiber cabling occupies large space and features slow construction, and can no longer meet the rapid expansion needs of computing power centers.

As the product with the largest domestic market share,SHINHO X-950 Ribbon Fiber Fusion Splicer supports one-time splicing of 12-core and 16-core ribbon fibers, improving splicing efficiency by more than 8 times compared with traditional single-core splicing. It is perfectly suitable for the large-scale deployment of 800G/1.6T high-speed optical modules. Currently, we are enhancing the splicing performance for 12-core and 16-core spider-web ribbon fibers.

2. Large-Core Diameter Laser Fusion Splicer & Large-Core Fiber Cleaver: Essential Supporting Equipment for AI High-End Manufacturing

The wave of AI-enabled advanced manufacturing is driving the boom of the high-power laser industry. Scenarios such as tab welding for new energy batteries, laser cutting of AI chips, and precision 3D printing all rely on high-power fiber lasers for high-precision processing. The annual growth rate of installed high-power products from mainstream laser source manufacturers including IPG, JPT, Raycus, and Max exceeds 45%.

However, the large-core diameter fibers used in such high-power lasers cannot be deployed or maintained by ordinary fusion splicers. SHINHO S-37 Series Large-Core Diameter Fusion Splicer covers a cladding diameter range of 125–680μm, perfectly adapting to the fusion splicing needs of various high-power laser fibers and fully meeting high-power laser transmission requirements. It will become a new growth driver for our business.

3. Specialized Fusion Splicers: Early Layout for Next-Generation AI Optical Interconnect

In fiber-based AI sensing networks (such as distributed acoustic/temperature sensing DAS/DTS for intelligent infrastructure monitoring), fiber optic gyroscopes (for high-precision positioning in autonomous driving), and quantum communication/computing (for future secure AI networks), polarization-maintaining (PM) fibers must maintain stable polarization states. SHINHO S-12PM Polarization-Maintaining Fiber Fusion Splicer ensures extremely low polarization crosstalk, providing a prerequisite for the reliable operation of these high-precision, high-sensitivity AI-related systems.

SHINHO S-22 Multi-Core Fiber Fusion Splicer: Oriented toward cutting-edge high-capacity fiber technologies such as Space Division Multiplexing (SDM), it achieves precise alignment and splicing of multi-core fibers (4-core, 7-core, etc.), providing key technical support for breaking through single-fiber capacity limits and building next-generation ultra-high-speed backbone networks for AI.

4. Communication Fusion Splicers + AI Empowerment: Infrastructure Upgrade for Basic Computing Power Networks

In addition, our conventional communication fusion splicers, as basic supporting equipment for computing power networks, support the rapid deployment of 5G/5.5G bearer networks and edge AI nodes. Meanwhile, we have integrated AI technology into our products: through AI algorithms, we optimize automatic matching of splicing parameters and intelligent detection of splicing defects, raising the splicing success rate to 99.5%. Even non-professional operators can complete high-quality splicing, greatly lowering the deployment threshold of edge AI nodes and further enhancing product competitiveness.

II. Exploring the New Cycle: Potential Business Opportunities and Growth Paths

The AI boom has brought a brand-new incremental market to the optical connectivity industry. Combined with our product advantages, we can tap into potential business opportunities from five dimensions:

1. Incremental Market of Domestic AI Computing Power Centers

According to the Ministry of Industry and Information Technology, the rack scale of newly built domestic AI computing power centers will exceed 300,000 in 2025, with an annual growth rate of over 35% in corresponding demand for fiber optic cabling and splicing equipment. SHINHO ribbon fusion splicers and conventional communication fusion splicers already have mature solutions. We can launch integrated "Cabling + Splicing" solutions for computing power center customers to seize this incremental market.

2. Blue Ocean Market Supporting High-End Laser Manufacturing

AI-driven new energy and chip manufacturing industries are boosting the explosive growth of high-power laser equipment, while the demand for maintenance and new machine deployment of large-core diameter fusion splicers is still in a blue ocean stage. We can establish in-depth cooperation with leading laser source manufacturers such as Raycus and Max, become their global supporting suppliers, bind core customers, and achieve steady growth in bulk orders.

3. Localization Substitution Opportunities for Specialized Splicing Equipment

The market for specialized fusion splicers such as multi-core and polarization-maintaining types has long been dominated by overseas brands, which feature high prices and slow service response. Meanwhile, domestic optical communication and scientific research customers have an increasingly strong demand for localization substitution. Our products have reached the technical level of international counterparts at only 60% of the price of overseas brands. We can launch customized splicing solutions for high-end customers to quickly seize this high-margin market.

4. Global Going-Global Business Opportunities

The overseas AI industry is also expanding rapidly. The construction of AI data centers in Southeast Asia, Europe, and the Middle East, as well as overseas laser manufacturing manufacturers, all have strong demand for cost-effective fusion splicers. With mature foreign trade channels, we can leverage the AI boom to launch high-end products such as large-core diameter and ribbon splicers to overseas markets, break away from price competition of conventional products, and improve the profit margin of overseas business.

III. Seizing Opportunities: Implementation Measures

To capitalize on the AI wave, our company will promote implementation in three aspects:

1. R&D Upgrade: Continuously increase the application of AI technology in fusion splicer products, launch functions such as AI remote diagnosis and automatic parameter optimization, and iterate specialized splicing products to adapt to cutting-edge multi-core and few-mode fiber demands.

2. Precision Marketing: Launch customized industry solutions for core customers such as AI computing power centers, laser manufacturing, and optical module manufacturers; participate in industry exhibitions for AI computing power and laser manufacturing to accurately reach target customers.

3. Ecological Cooperation: Establish ecological partnerships with leading laser source manufacturers, optical module manufacturers, and computing power center integrators, jointly launch supporting solutions, bind core customers, and explore the market together.

The AI wave has ushered in a brand-new growth cycle for the optical connectivity industry. Our full range of fusion splicing products has completed full-scenario layout. We are confident in seizing this opportunity, building a new growth curve beyond traditional businesses, and achieving leapfrog development of the company.