Galaxy Securities research: AI-era compute clusters are boosting demand for both
front- and back-end networking. 1.6T port switches are expected to ramp from
2027, and WAIC 2026 highlighted supernodes as the dominant architecture. Rapid
internal interconnect bandwidth upgrades raise per-switch value and support
margins; Scale-Up switches compress latency from microsecond to ~100ns levels,
increasing design and validation complexity versus legacy products and
sustaining incumbents’ pricing power, creating industry chokepoints that
accelerate domestic switch‑chip substitution. With overseas switch leaders'
earnings catalysts, the report recommends focusing on leading domestic switch
and switch‑chip names.
