Marvell sees 2027 acceleration in scale-up optics

Marvell's forecast of accelerated optical deployment by 2027 signals a fundamental shift in data center interconnects. As compute scales expand, copper cable limitations in bandwidth and distance are forcing customers to adopt higher-performance optical solutions. This trend will drive rapid growth in the near-package optical (NPO) supply chain, with upstream photonic chip and packaging material vendors leading the gain, while downstream server and networking equipment makers must restructure their designs. From a compliance standpoint, enterprises face rising risks from geopolitical tensions and evolving export controls, especially in the intersection of U.S. regulations and China Taiwan/ Taiwan, China technology flows. Competitors such as Cortina and Broadcom are likely to intensify their NPO product development to seize market share. Within the next 12 months, optical interconnects will become the core battleground in AI data centers, heralding a new wave of technological cycles.