M Stanley: Huawei "Tao's Law" Supports Exponential Growth of AI Optical Transceiver Industry
Morgan Stanley's report highlights Huawei's 'Tao's Law' presented at ISCAS 2026, which supports exponential growth in the AI optical transceiver industry. The law optimizes system efficiency over miniaturization, enhancing transistor density by 55% and power efficiency by 41%. By 2035, hardware integration is projected to increase over 100 times through innovative technologies like 'logic folding' and a unified memory architecture.
Morgan Stanley published a research report stating that at the International Symposium on Circuits and Systems (ISCAS 2026) held in Shanghai yesterday (25th), Huawei proposed the time-based scaling principle of "Tao's Law". The bank believes this theory provides fundamental support for the exponential growth of the AI optical transceiver industry and reiterated its positive view on the sector.
The report explained that "Tao's Law" is a time-scaling principle proposed by Huawei for multi-layer electronic systems, aimed at succeeding Moore's Law as geometric scaling approaches its limits. The methodology optimizes a unified time constant (t) across all computing layers from transistors to data centers, shifting the focus from miniaturization to overall system efficiency, including interconnects, signal integrity, power supply and thermal management.
Under this new concept, Huawei's innovative "logic folding" technology vertically stacks active layers of digital, analog and memory circuits, achieving a 55% increase in transistor density and a 41% improvement in power efficiency at a fixed process node. At the AI cluster level, by integrating a unified memory semantic bus interconnect architecture, near-packaged optics Hi-ONE, and edge-to-surface 3D folding technologies, hardware integration is expected to increase by more than 100 times by 2035.(ad/da)
