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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