India, Feb. 5 -- While DeepSeek has successfully reduced AI training costs, the broader cost reduction of AI models is expected to expand application scenarios and drive an increase in global data center deployments.

Optical transceivers, as a key component in data center interconnectivity, are set to benefit from the growing demand for high-speed data transmission. AI servers rely heavily on optical transceivers to convert electrical signals into optical signals, transmit them via optical fiber, and then convert received optical signals back into electrical signals.

TrendForce reports that worldwide shipments of 400G and higher optical transceivers reached 6.4 million units in 2023. This figure is expected to grow to 20.4 million units...