According to lightcounting's forecast

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As a leading wafer manufacturer, tsmc's heterogeneous packaging technology can achieve better integration and performance levels, and by deploying a 3d optical engine, it can smoothly enter the key data center connection field.

In 2025, tsmc’s first-generation 3d optical engine will be integrated into osfp pluggable devices running at 1.6tbps, twice the maximum rate of current copper-based ethernet solutions.

Benefiting from the aigc computing power demand for high-bandwidth, low-power, and low-cost optical communication solutions, as well as the demonstration role of the layout of leading chip manufacturers and technology giants, the "optical fiber in and copper out" strategy has expanded the field of high-performance computing, and the commercialization of cpo has been further accelerated, and it is expected to gain some market share of traditional pluggable optical modules.

Cpo shipments are expected to start with 800g and 1.6t ports, and begin to scale up in, cpo ports will account for nearly 30% of the total 800g and 1.6t shipments.

Yole report data shows that the revenue generated by the cpo overseas chinese data market in is expected to reach us$2.6 billion in 2033, with a compound annual growth rate of 46% from.

However, as the mainstream solution of current cpo technology, silicon photonics technology itself still faces some challenges, such as insufficient yield of the packaging process, challenges brought by different inspection standards for optical and electrical devices, how to reduce the loss of silicon waveguides, how to achieve effective coupling between waveguides and optical fibers, etc.

Despite its significant potential advantages, cpo is still in the early stages of industrialization. The in-depth layout of leading manufacturers is expected to usher in a new round of industrial evolution. Early investment opportunities will include two aspects. Some silicon photonic device/optical module manufacturers are expected to fully benefit from industrial development.

On the other hand, for example, improvements in early process flows correspond to investment opportunities for supporting process equipment and software manufacturers.