The neural center of the AI world is born! Silicon photonics technology ignites a new battlefield in AI optical communication.
TechNews
October 27, 2025
By YuShan C.
The AI era is no longer just an arena for chips; "light" is becoming the new protagonist determining the limits of computing power.
NVIDIA recently announced on its website the official launch of its first silicon photonics network switch using Co-Packaged Optics (CPO) technology, Spectrum-X, which has been adopted by cloud giants Oracle and Meta. This signifies the official start of the AI optical communication era—the speed bottleneck of data centers is being broken by "light."
With NVIDIA's entry into the high-speed switching market using silicon photonics integration technology, the internal transmission structure of AI servers will be comprehensively upgraded, driving a surge in demand for optical modules, optical transceivers, and high-speed connectors. Taiwanese supply chain companies such as Lianjun, Poroway, CSOT, and Shangquan Optoelectronics are expected to be the biggest beneficiaries of this wave.
Traditional electrical transmission is increasingly unable to support the massive data throughput demands of AI models. CPO (Commonly Packaged Optics) significantly shortens signal transmission distance, reduces power consumption, and increases bandwidth density by integrating optical modules directly with switching chips in the same package. Silicon photonics technology allows chips and optical components to operate on silicon substrates, forming a low-latency, high-speed, and scalable AI data center transmission architecture.
Is NVIDIA transforming into an "AI network architecture platform provider"?
From another perspective, this represents a critical point for AI hardware, moving from "electricity to optical." For the past decade, the bottleneck in AI performance has been computing power; now, the bottleneck has shifted to data transmission efficiency. Whoever can solve the "internal latency of data centers" problem first will control the discourse on next-generation AI infrastructure. CPO is not just a technological breakthrough, but a reconstruction of energy and architecture.
NVIDIA's Spectrum-X incorporates "light" into the neural network of AI servers, supporting hundreds of terabytes per second of transmission through silicon photonics switches, forming a closed-loop architecture of "light-speed interconnection" with its GPU clusters. This not only improves AI training efficiency but also lays the foundation for large-scale generative AI and supercomputer computing. The industry views this as a "new era for AI network switches," symbolizing the shift of data centers from "electrical interconnection" to "optical interconnection."
The author believes that NVIDIA is no longer just a chip company but is transforming into an "AI network architecture platform provider." Spectrum-X represents NVIDIA's vertical integration of the overall data center architecture, incorporating everything from GPUs to switches into its own ecosystem. This not only solidifies its market position but also puts pressure on traditional networking giants. Future competition in AI infrastructure will extend from chip performance to control over the overall "network topology."
Optical communication components have become one of the core components of AI servers, and Taiwanese manufacturers possess a complete optical module manufacturing chain. For example, Lianjun and Poroway lead in high-speed optical transceiver module manufacturing technology, Huaxing Optoelectronics has CPO packaging and optical engine design capabilities, and Shangquan supplies key optical connectors and high-speed transmission components. Analysts also anticipate that demand for AI optical communication will grow at a rate exceeding 30% annually over the next three years, with Taiwanese manufacturers poised to play a pivotal role in the global supply chain.
How Taiwanese Manufacturers Can Transform from OEMs to Design Partners
Taiwan's strong foundation in semiconductor and optoelectronic manufacturing provides a natural advantage in seizing the opportunities presented by the CPO era. However, the challenge lies in the fact that R&D and customization capabilities are still limited by the specifications dominated by international giants. If Taiwanese manufacturers can achieve breakthroughs in "optoelectronic integrated packaging" and "thermal management technology," they will have the opportunity to transform from OEMs to design partners, further enhancing their bargaining power and global visibility.
As AI training models grow in scale with tens or even trillions of parameters, even the most powerful computing power requires "light-speed" support. From GPUs to silicon photonic switches, AI infrastructure is shifting from a "computational race" to a "transmission revolution." Whoever controls the "light" will gain the upper hand in the AI battlefield.
This "light revolution" is not just a technological evolution, but also an ecological shift. The next step for AI lies not in more powerful chips, but in smarter connections. From energy efficiency and thermal management to module design, optical communication technology will redefine the architectural logic of AI data centers. It is foreseeable that "computing power" and "optical power" will become the twin engines of AI infrastructure, driving the entire technology industry into a new cycle of investment and innovation.
Related Link: https://technews.tw/2025/10/27/cpo-spectrum-x/
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The content of this article only represents the author's personal views and has nothing to do with Creating.
The content, text description and originality have not been verified by this site. This site does not make any guarantee or commitment to this article and all or part of the content, authenticity, completeness, and timeliness. It is for readers' reference only. Please verify the relevant content yourself.
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