'Big Cycle' Driven by 6G Transition...Telecommunications Equipment Sector Enters Full-Fledged Growth

As the transition phase from standalone 5G (5G SA) to 6G approaches, there is a growing consensus that the global telecommunications equipment industry will enter another structural growth cycle. Analysts note that not only is the investment expansion seen during the shift from 4G to 5G likely to recur, but this time both the scale and duration of investment could be even larger, forming a 'big cycle'.

From 5G SA to 6G: Supply Chain Restructuring Amid US-China Tensions

According to industry sources, after an initial phase of heavy 5G investment, the telecommunications market has entered a stable phase focused on maintenance. However, from 2027 onward, the spread of 5G SA and preparatory investments for 6G are expected to accelerate. In particular, policy initiatives led by the United States are identified as key factors that could fast-track market changes. The US is pushing to prepare trial 6G devices with an eye on the 2028 Los Angeles Olympics, which is expected to trigger a ramp-up in telecommunications equipment investment around 2027. Subsequently, from 2029 to 2030, the full-scale introduction of 6G-specific equipment is likely to extend the long-term investment cycle.

Hongshik Kim, a researcher at Hana Securities, stated, "This telecommunications investment cycle, moving from 5G SA to 6G, is likely to be larger and longer than before. Since initial 5G investments were relatively small, the scale of 5G SA investment in 2027-2028 will inevitably be significant, followed by 6G investments through 2029-2030."

The transition to 6G is considered a structural change that goes beyond simple technological evolution, triggering expanded infrastructure investment across next-generation industries such as autonomous driving, smart factories, and physical AI. If major nations intensify their network advancement competition, demand for telecommunications equipment is also expected to rise rapidly. Additionally, as the influence of Chinese companies wanes due to US-China tensions, supply chains are being reorganized around Korea, Europe, and Japan, creating significant opportunities for leading component manufacturers to expand their market share.

Growth of RF Component Firms Accelerates: Spotlight on RN2 Technologies, SensorView, and Solid

Amid these structural changes, a fresh reassessment of the mid- to long-term growth potential of radio frequency (RF) component companies with global supply chains is anticipated. RF components are regarded as a key beneficiary area during generational shifts in telecommunications, with demand surging during such transitions. In fact, RF component companies experienced a marked increase in sales during the 5G transition period.

RN2 Technologies has secured approximately 60% market share based on its supply chain relationships with major global telecommunications equipment companies such as Samsung Electronics, Ericsson, Nokia, Huawei, and ZTE. The company’s ability to maintain its existing transaction structure is seen as an advantage, enabling immediate sales linkage during the shift to 6G without the need to acquire new customers. RN2 Technologies has completed the development of 10 types of 6G RF coupler components in the MLC segment, which split and mix RF signals, and is currently conducting sample testing with key clients. The company is now in the early stages leading up to commercialization, and is also accelerating efforts to secure high-frequency band response technology.

Meanwhile, domestic RF component and equipment firms are also drawing attention for their technological competitiveness in preparing for the 6G era. SensorView, selected as a supplier for Qualcomm based on its 5G/6G antenna, cable, and connector technology, has particularly drawn attention for its ability to transmit large volumes of data in the millimeter wave band (above 24GHz). This technology is recognized as critical infrastructure for the AI era.

Solid, a supplier of mobile network equipment, is recognized for its competitiveness in the in-building equipment sector, which enables stable communication signal delivery inside buildings. As demand for reliable communication environments grows in large buildings, underground spaces, and stadiums—and as data traffic continues to rise—the importance of such equipment is becoming increasingly prominent.

Optical Communication Infrastructure Emerges as a Core Axis: Focus on Taihan Fiberoptics and OE Solutions

The role of optical communication infrastructure companies is also becoming more vital. As laser-based optical communication technology emerges as a key element for dramatically increasing data capacity and transmission speeds between terrestrial and satellite networks, the use of optical amplifiers and lasers within satellite communication systems is rapidly expanding.

Taihan Fiberoptics is the only company in Korea with an integrated production system from optical fibers to optical cables. Leveraging its specialty fiber development and optical fiber preform material technologies, it is expanding its business in materials, components, and equipment, as well as specialty optical fiber. In particular, its radiation-resistant optical fiber technology positions it to capitalize on the expansion of next-generation satellite communication infrastructure.

OE Solutions, specializing in optical transceivers and laser diodes, supplies products to various telecommunications markets, including 5G wireless networks, fiber to the home (FTTH), and cable TV (CATV). Recently, it has demonstrated its technological competitiveness by successfully localizing and mass-producing high-output 10G EPON optical line terminal (OLT) transceivers, bolstering its growth base by expanding new orders and securing next-generation technologies.

An industry expert explained, "6G is not just about speed improvements; it fundamentally restructures infrastructure across industries such as autonomous driving, smart factories, and physical AI. In this process, RF component firms and optical communication infrastructure providers will establish themselves as core value chain players." The expert also noted, "As the proportion of high-frequency response products increases, there is a strong possibility that unit prices and profitability will rise accordingly."

This content was produced with the assistance of AI translation services.