CSP ASIC demand drives structural growth in high-speed interconnects

Surging CSP demand for ASICs is reshaping the high-speed interconnect stack: silicon photonics and co-packaged optics (CPO) face bottlenecks in signal integrity and power efficiency, accelerating adoption of advanced packaging and low-loss materials. Tightening U.S. export controls are forcing supply chain realignment—particularly disrupting collaboration between Taiwan, China foundries and U.S. IP licensors—with compliance costs potentially rising over 15%. NVIDIA and Broadcom are vertically integrating to secure CoWoS capacity, while Marvell and Ampere bet on open ecosystems to sidestep bottlenecks. Over the next 18 months, interconnect design will shift from performance-centric to power-density-optimized, catalyzing 3D integration architectures and enabling Chinese optical module vendors to leap into chip-level solutions, unlocking a second growth vector.