Junheng Technology's First-Phase Base in Ezhou Officially Commissions with Annual Capacity of 1.5 Million High-Speed Optical Modules

On December 30, high-speed optical module manufacturer Junheng Technology announced the official commissioning of its first-phase base in Ezhou, marking a new stage of development for the company in intelligent manufacturing, automated production line construction, and capacity expansion.  

Peng Kaisheng, Chairman of Junheng Technology, stated that the commissioning of the first-phase project is a significant milestone in the company's deep-rooted commitment to the optical communication industry and its accelerated transformation and upgrading. The first-phase base of Hubei Junheng in Ezhou integrates intelligent production, cutting-edge research and development, and end-to-end quality control. Upon reaching full production capacity, the annual output of high-speed optical modules is expected to reach 1.5 million units.  

In an announcement disclosed in October, Junheng Technology’s controlling shareholder, Huilv Ecological, revealed that Junheng Technology signed a contract with the Ezhou LinKong Management Committee for the construction of an optical module production base with a total capacity of 4.5 million units. The project will be carried out in two phases.  

The first phase involves the "Investment Contract for the Production Base Project with an Annual Output of 1.5 Million Optical Modules." The contract stipulates that Wuhan Junheng will invest in the construction of a production base with an annual capacity of 1.5 million optical modules within the jurisdiction of the LinKong Management Committee. The total investment amounts to 200 million yuan, including 100 million yuan in fixed assets investment.  

The second phase involves the "Investment Contract for the Production Base Project with an Annual Output of 3 Million Optical Modules." The contract stipulates that Wuhan Junheng will invest in the construction of a production base with an annual capacity of 3 million optical modules within the jurisdiction of the LinKong Management Committee. The total investment amounts to 500 million yuan, including no less than 300 million yuan in fixed assets investment.  

The products from Junheng Technology’s first-phase production line in Ezhou will mainly consist of 400G and 800G high-speed optical modules, which are expected to be the primary drivers of capacity growth in 2026. The second-phase production line in Ezhou is scheduled to commence operations in 2027, further strengthening the company’s order fulfillment capabilities in high-growth areas such as AI computing power and data centers. Additionally, Junheng Technology has acquired industrial land in Penang, Malaysia, for the construction of an overseas optical module production base. This move establishes a "dual-wheel drive" pattern for capacity expansion, with Malaysia and Ezhou, China, serving as the two key hubs.  

According to the quarterly market update report released by LightCounting (LC), the global optical transceiver (optical module) and related products market achieved unprecedented strong growth in 2025. It is estimated that the annual sales in 2025 will exceed $23 billion, representing a significant increase of 50% compared to 2024. Among these, sales of data center Ethernet optical modules reached $17 billion, a 60% year-on-year growth. Active Optical Cables (AOC) are projected to achieve sales exceeding $1.1 billion in 2025, doubling the figure from 2024.  

The driving forces behind this market growth are primarily the record-high capital expenditures of hyperscale cloud service providers such as Alphabet (Google’s parent company), Amazon, Meta, and Microsoft, as well as the persistently strong demand for artificial intelligence (AI) infrastructure.  

Against the backdrop of sustained high growth in global AI computing power and data center construction, optical modules, as core components, are in high demand. Junheng Technology’s simultaneous expansion of production capacity both domestically and overseas demonstrates its strong determination to seize industry opportunities and rapidly enhance its market share and global competitiveness.