800G vs 1.6T Optical Modules: A BOM Teardown Across One Generational Leap, and Who Really Captures the Margin
2026 is being called "the year of 1.6T." But if you only watch Innolight's and Eoptolink's shipment volumes, you'll miss where the profit actually happens. The best reference frame for understanding 1.6T is the previous generation, 800G, so let's tear the two down side by side.
Start with price. 800G is a mature product, now priced at around US$400; 1.6T is still early on its curve at roughly US$1,300-1,500. Comparing like with like, the jump from 800G to 1.6T raises ASP by about 150% while bandwidth only doubles. Cost per bit has to fall, so long-run volume pricing for 1.6T will converge toward US$800. The key anchor: 800G at US$400 (0.8T) works out to exactly the same cost per bit as 1.6T at US$800 (1.6T), parity between generations. 1.6T is walking 800G's old path, shifted up one generation.
The bill of materials is nearly identical across generations (8 light sources + 2 TIAs + 2 drivers + 1 DSP); the difference is the generational spec: 100G to 200G per lane. (Note: TIAs and drivers are electronic ICs (EICs), counted separately in both discrete and SiPh designs and not integrated into the SiPh PIC; the main difference lies in the light source.)
Next, the generational jump in chip unit prices:
DSP: 800G about US$XXX (XXX at volume) → 1.6T about US$XXX, lead time XXX weeks
EML light source: 800G uses 100G EMLs at US$XXX → 1.6T uses 200G EMLs at US$XXX, XXX times more per unit
SiPh penetration: about 40-45% at 800G → rising to 60% for short-reach 1.6T
The BOM share structure is similar across both generations (DSP is the largest at 25-40%, light sources next), but doubled ASP means the absolute dollar value of every item doubles too
And 200G EMLs are now in short supply (a 20-60% gap, depending on how you measure), with lead times stretching to the end of 2027 and prices still rising. The hardest bottleneck is hiding in this BOM.
That's the summary of this article.
STT's full analysis: who is really capturing the margin along this BOM, which items will keep rising, which will be knocked out by domestic Chinese suppliers or LPO, and the truth about the SiPh bottleneck. It is all in the paid section.
Comments