1. Nomura has outlined the progress of domestically produced switching chips: HiSilicon has commercially deployed its 51.2T switching chip in AI data centers, based on 112G SerDes and Huawei's self-developed UB protocol, and it is already integrated with Huawei CloudEngine series switches; Shengke Networks' 25.6T chip (supporting 800G ports and UEC standard) will be shipped to domestic cloud vendors in 2026, while the 51.2T is still under development. In contrast, Broadcom has already mass-produced its 102.4T chip—domestic manufacturers are generally lagging behind by 1 to 2 generations.
2. Despite the remaining gap, Nomura believes the trend of localization is irreversible, and Unisplendour Corporation will benefit in the long term from its cooperation with Shengke. Nomura maintains its "Buy" rating on InnoLight Technology, Yangtze Optical Fibre and Cable, Tianfu Communication, and Unisplendour Corporation. (Nomura Report, September 28)
