Nvidia and ASE's SPIL aim to ship co-packaged optics in volume in 2027
The two are expanding supply of optical engines for co-packaged optics, targeting a 15-fold capacity increase by mid-2027 and a 30-fold increase by the end of 2028, as data-centre traffic exposes the power and bandwidth limits of electrical links.
Why it matters
Co-packaged optics put the optical engine next to the switch or processor chip instead of in a pluggable module, cutting the power spent pushing signals over copper between racks of AI accelerators. A 15-fold capacity jump by mid-2027 signals that Nvidia expects optical networking to move from pilot to mainstream in its next systems, and it ties Taiwan's packaging houses more tightly into the AI supply chain. A SPIL executive separately said automation has lifted optical-component assembly and test throughput roughly five- to sixfold. Watch for which Nvidia switch and system generations ship with CPO first.
Key facts
- Partners: Nvidia and SPIL, part of ASE Technology
- Target: 15x optical-engine capacity by mid-2027
- Target: 30x capacity by end-2028
- Goal: CPO volume shipments in 2027
- Automation lifted assembly and test throughput about 5-6x, per a SPIL executive