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DigiTimes
CPO gains momentum as AI interconnect demands outpace chip gains
The growing reliance on co-packaged optics (CPO) in the AI industry highlights a significant shift towards optimizing chip-to-data center connections. Companies like JCET are reporting substantial profit surges due to this trend, with a 79% increase attributed to rising AI demands. As more buyers lock in memory capacity for future needs, manufacturers face challenges adapting to the rapid progression in data processing technologies. TSMC's ongoing efforts to tackle material risks also indicate a proactive stance towards maintaining competitiveness in this evolving market.
MonitorConfidence: MediumShort term horizon
Published 21 Aug 2026, 04:20 UTC1 min read
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Summary
TL;DR
- CPO demand is rising due to the needs of faster AI systems.
- JCET reported a 79% profit surge driven by AI demand.
- Manufacturers are adapting to new efficiency requirements.
- Memory capacity for 2027 is reportedly sold out.
- TSMC addresses CoWoS material risks in its production.
Interesting facts
- The AI industry's focus on CPO indicates a long-term strategy for chip efficiency.
- Companies are anticipating demand by securing memory supplies well in advance.
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