Despite TSMC estimates that mass production of silicon photonic (SIFH) co-packaged optical (CPO) technology will take 1-1-5 years, the optical communications industry has accelerated its recent development of CPOs. He says that. Test production lines have been set up to begin small-scale shipments in 2025, and CPO shipments could pave the way for them to reach critical milestones in the second half of 2026.
With the surge in demand for data calculation and transmission driven by artificial intelligence (AI), the optical communication supply chain is associated with SIFH CPOs aimed at overcoming the speed limits imposed by traditional copper wiring It encourages people to work together and focus on key technologies.
Industry Insiders noted that the development of the SIFH CPO involves extensive integration between multiple supply chains, with many variables affecting progress. However, TSMC leadership remains a major factor.
Recent market reports suggest that small shipping of 1.6T CPO modules can be possible from late 2025 to early 2026 to early 2026, and could serve as a key declaration within the industry. Masu.
With small-scale verifications coming soon in 2025, various optical telecommunications companies are actively positioning themselves. If they can take the lead, they will capitalize on the high growth momentum of the future AI landscape and make the competition more and more intense in 2025.
To address the challenges faced when traditional signal transmission speeds exceed 200g, if signal loss exceeds acceptable range, the number of copper cables required will be twice as high, exacerbating the problems of power consumption and heat dissipation .
Once NVIDIA’s next-generation Rubin platform enters the NVLink 6.0 specification phase, total data transmission volume could double, significantly increasing the need for CPO module implementation, and the transmission bottlenecks faced by AI servers It will be resolved.
Industry experts believe mass production of the SIFH CPO is projected to begin in 2027 as Rubin Ultra, which is scheduled to debut in 2027, is likely to adopt these technologies.
A recent report shows that of the three main structural components of the CPO, TSMC utilizes advanced packaging SOIC technology to use silicon interser for chip connections to provide electronic integration circuits (EICs) and photonic integration. It shows integration of circuits (PICs).
If verification is successful, it is expected that the manufacturing problems will be resolved in large part. Meanwhile, TSMC continues to play a leading role with partners in the development of external fiber array units (FAUs). However, as future mass production demands increase, outsourcing orders for back-end processes will gradually be released.
Foci expects small shipping in 2025
Although the supply chain maintains a low profile of CPO progress, Foci is considered one of TSMC’s closest collaborators in CPO development.
Foci expects products related to CPO fiber arrays to see small shipments in 2025. The board approved NT $1.777 billion (approximately US$53.9 million) capital expenditures in 2025. Technology R&D. Starting in 2026, the data center will move from existing pluggable fiber connections to the development of CPO integrated optical engines.
Foci features core technologies related to FAU high density, high precision fiber array manufacturing, and precise alignment and packaging technologies.
In the first three quarters of 2024, Foci’s revenue share from SIFH and CPO products was around 7%, a slight increase from 5% in 2023. It will start operation by the end of 2024 and will donate some income from the shipment in 2025.
Additionally, Browave, which holds a 4.55% stake in FOCI, is also involved in the EIC-PIC FAU bonding and fiber connection process, with medium to long-term prospects to enter into external laser CPO testing procedures.
Authenx is reportedly working with major Japanese manufacturers on PIC development
Authenx, the company Ezconn invested in, focuses on developing PIC technology for SIPH CPO.
Through Ezconn’s connection, Authenx reportedly began working with major Japanese textile module manufacturers, creating opportunities to reconnect with the future TSMC and Nvidia supply chains. Meanwhile, the FAU is a strong lawsuit for Ezconn, with small shipping expected in 2025.
Upstream epitaxial manufacturer landmark Optoelectronics is estimated to have revenues likely to reach $450 million for the first quarter of 2025, benefiting from robust SIFH shipments, with a quarterly increase. It is expressed as a 56% increase. Although revenues for January were reported at $122 million, a significant performance improvement in February and March to achieve similar quarterly growth, reflecting a 7.41% increase from the previous year is required.
Landmark Optoelectronics has just begun adopting the 1.6T specification in 2025, but collaborations with several customers are underway to develop CPO products, while CPO will be mass-produced in 2025 It is not expected to enter. This is mainly because CSP customers are concerned. CPO heat resistance and reliability. Even if small shipments occur in 2025, another year of testing will be required before mass production becomes possible.
