CPO to become the next major growth driver, says GSEO; future volumes could rival smartphone lenses

The optical communication industry is experiencing new growth opportunities, with Genius Electronic Optical (GSEO) Chairman Jones Chen stating at the company's shareholders meeting on May 29 that Co-P... Read original →

GSEO’s bet on CPO as its next growth engine reflects a strategic alignment with the paradigm shift in AI data center interconnects. Technically, CPO accelerates co-evolution across silicon photonics, advanced packaging, and high-speed SerDes—pushing TSMC to prioritize heterogeneous optoelectronic integration within CoWoS capacity. On compliance, emerging U.S. and EU regulations on energy efficiency and data sovereignty could expose Taiwan, China-based suppliers to supply chain fragility if reliant on U.S.-controlled IP or packaging tools. Competitively, Lumentum and Coherent will likely integrate optical engines with driver ASICs to squeeze standalone module makers, while Huawei and Innolight leverage China’s domestic substitution push for 800G/1.6T dominance. Over the next 12–24 months, CPO won’t replace pluggables broadly but will dominate hyperscale AI clusters, spawning niche markets in thermal management and specialized test equipment—its tailwind far exceeding smartphone lens cycles.