Innolight indicates that 800G market demand has significantly increased beyond prior expectations, driven by new customers including neoclouds and AI model companies. The company notes broad supply chain shortages across optical chips, electrical chips, and PCBs, with some component availability expected to improve gradually from H2 2026 through H1 2027. Innolight also observes a continued upward trend in silicon photonics adoption, with some 800G customers increasing their silicon photonics proportion.
Networking module demand is accelerating beyond expectations, but broad component shortages will persist into H1 2027, limiting supply for transceiver makers.