DSBJ Clears HKEX Listing Hearing; PCB, Optical Chips and Optical Modules Target AI Servers

C114 News, October 12 (Shui Yi) — The HKEX website shows that Suzhou Dongshan Precision Manufacturing Co., Ltd. ("Dongshan Precision") has updated its post-hearing information pack, indicating that the company has passed its listing hearing on the Hong Kong Stock Exchange.

According to CIC, Dongshan Precision is the world's only supplier with capabilities spanning PCBs, optical chips and optical modules. Together, these account for about 9% to 14% of the materials cost of AIservers, ranking second only to GPUs in most AI servers.

In optical interconnect, through Source Photonics, a world-leading optical module provider, Dongshan Precision has built in-house optical chip capabilities centered on high-speed EML chips, with data rates ranging from 2.5G to 200G. The company is currently focused on commercializing high-end 100G and 200G PAM4 EML chips while continuing to develop next-generation technologies such as 400G EML chips and high-power continuous-wave optical sources. It also offers optical modules from 10G to 1.6T and is developing next-generation modules of 3.2T and above.

Data show that in the first half of 2026, Dongshan Precision's optical module business generated revenue of 5.351 billion yuan, accounting for 19.25% of total revenue, with an overall gross margin of 39.33%.

Recently, Morgan Stanley said in a research report that, after exchanges with senior Washington figures in telecommunications, the FCC and export controls, its team believes that potential U.S. FCC restrictions on Chinese-made optical modules are most likely to be phased in starting with the 3.2T generation, and that exports to the United States can most likely continue if the share of U.S.-made optical components in the materials can be raised above 65%.

Dongshan Precision responded that the claims circulating in the market about a 65% U.S.-origin materials ratio are unofficial market rumors, not formal policy requirements issued and effective by regulators. Some of the optical chips used in the company's optical module business are developed and produced in-house and account for no more than 10% of total optical module BOM cost; the vast majority of other materials can be procured in ways that better meet origin-ratio requirements, leaving ample room for overall compliance. The company can also further meet relevant requirements through supply chain optimization in the future, and has not ruled out establishing production capacity in the United States.

Dongshan Precision said global demand for AI computing power continues to grow, overall demand in the optical module industry remains robust, supply of key upstream materials is generally tight, and industry conditions are at a high level. The company is actively engaging with key downstream customers and working to advance capacity construction and delivery assurance.

Notably, Dongshan Precision's optical chip products are mainly used in its own optical module production, with a moderate level of external sales based on market demand. Going forward, the company will continue to optimize its optical chip product portfolio in line with the evolution of downstream technology roadmaps to match market demand.