Co-Packaged Optics (CPO) is a technology and design approach where optical components, such as lasers and photodetectors, are integrated alongside electrical components, like Application-Specific Integrated Circuits (ASICs), within the same package. As data demands grow, these systems face limitations such as bandwidth constraints, latency issues, and space limitations. 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. They make the signal path much shorter, from centimeters to millimeters. This can cut power use by up to half., May 5, 2026 — GlobalFoundries (GF) has introduced an optical module solution for co-packaged optics (CPO). According to the company, the Silicon photonics Co-packaged Advanced Light Engine (SCALE) solution is the industry's first Optical Compute Interconnect Multi-Source Agreement (OCI. CPO stands for Co-packaged Optics. It refers to the co-packaging scheme in which the switching chip and optical engine are assembled within the same integrated socket.
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