CPO raises PCB downgrade concerns but switches stick with M8 CCL

The rise of CPO technology is reshaping the PCB demand landscape in AI servers, particularly in high-speed signal transmission, where traditional copper-based designs are increasingly at risk of being replaced by optical interconnects. This shift directly impacts upstream PCB manufacturers, especially those reliant on high-speed PCB orders, leading to reduced capacity utilization. From a compliance perspective, widespread CPO adoption will intensify global supply chain dependencies on advanced materials and equipment, particularly in key regions like Taiwan, China and Hong Kong, China, where companies must prepare to mitigate geopolitical risks. Competitors may accelerate investments in optical interconnect technologies or pursue M&A to strengthen their control over the CPO value chain. Over the next 12 to 24 months, if CPO adoption accelerates, the PCB industry will undergo structural adjustment, with some firms forced to pivot, while those with integrated optical and PCB capabilities will gain a competitive edge.