Shipments of optical components by Taiwan’s makers for 5G applications to China are likely to slow down in August-September as Chinese telecom operators are adjusting designs of some devices for 5G base station applications, according to industry sources.
Related changes are being implemented as part of China’s de-Americanization campaign amid escalating US-China trade tensions, said the sources.
Combined optical 5G component shipments during the August-September period are likely to fall by 20% sequentially due to changes including specifications for heat dissipation, power supply and those related to the replacement of HiSilicon chips, said the sources.
LandMark Optoelectronics, a specialist for epitaxial wafers and VCSEL components, said it has kicked off shipments of revised versions of its 25G products for 5G base stations to clients.
But it noted that demand for 10G and 25G products will remain strong in fourth-quarter 2020 due to low inventory levels at channel and the build-ups of 5G base stations are of long-term projects in China.
VCSEL maker TrueLight has said that it expects its gross margin for the third quarter to be lower than that seen in the previous quarter due to a slowdown in shipments of 5G applications. Related 10G devices account for 70-75% of the company’s shipments of optical products.