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Co-Packaged Optics (CPO) is emerging as a transformative solution. By integrating optical engines closer to switch ASICs and GPUs through advanced packaging approaches such as 2. Advanced semiconductor processes such as hybrid bonding and heterogeneous integration are key. These pressures are driving renewed momentum behind co-packaged optics (CPO). According to LightCounting, sales of lasers and photonic integrated circuits for optical transceivers are expected to grow from $2. 9B by 2029, fueled largely by AI data centers. This paper explores the evolution of CPO performance from various perspectives, including fan-out wafer level. NVIDIA is developing a co-packaged optics (CPO) platform that integrates optical and electrical components to improve data-center connectivity, in collaboration with industry partners like TSMC. (NYSE: COHR), a global leader in photonics, today announced it will demonstrate multiple co-packaged optics (CPO) technologies at OFC 2026 in Los Angeles, highlighting the company's broad portfolio and vertical technology stack.
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In a typical optical link, data is first transferred from the electrical to the optical domain using an or a directly modulated laser. An electro-optic modulator can vary the intensity and/or the phase of the optical carrier. In silicon photonics, a common technique to achieve modulation is to vary the density of free charge carriers. Variations of electron and hole densities change the real and the imaginary part of the refractive index of silicon as described by the empirical equations of Soref and B.
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