According to LightCounting's December 2021 Quarterly Market Update, the datacom side of the industry saw growth from top to bottom, while on the telecom side, growth in CSP capex and telecom network equipment did not carry over to the telecom components segment.
Some highlights from LightCounting:
ICP Top 15 capex hit another record high, with year-over-year growth of 34%, and datacom equipment revenues grew 9.6%, the fastest rate since Q3 2018. Facebook changed its name to Meta, and announced a 66% increase in capex for 2022.
In optical networking, Ciena had record high sales, of more than $1 billion for the first time, growing 26% y-o-y while the Top 15 NEMs collectively grew only 2%.
Despite continued problems in smartphone sales, Huawei’s optical business is down, but in terms of DWDM port shipments on par with 2020. Lack on new projects is the most likely reason for the discrepancy between sales and port shipments.
The semiconductor segment extended its streak of double-digit sales growth to seven quarters, with 12 of 14 companies solidly double-digits ahead of last year.
Despite all the above, 3Q21 component vendor company revenues in aggregate were 12% lower than in Q3 2020, but flat compared to Q2 2021. On the bright side, Broadex, HiSense, Innolight, Lumentum, and Neophotonics all reported Q3 sales higher than Q2 2021.
Optical transceiver sales were flat versus Q3 2020, but up 7% sequentially. We expect more growth in Q4 2021. Sales of 400ZR/ZR+ will return the telecom components market to positive territory.
https://www.lightcounting.com/newsletter/december-2021-quarterly-market-update-99
