Spain coordinates Europe's €400 million PIXEurope initiative to turn photonics research into scalable semiconductor manufacturing capacity. The strategic investment in optical component suppliers Lumentum and Coherent heralds a new era of optical interconnects inside AI data. These pressures are driving renewed momentum behind co-packaged optics (CPO). According to LightCounting, sales of lasers and photonic integrated circuits for optical transceivers are expected to grow from $2. 9B by 2029, fueled largely by AI data centers. This approach significantly reduces electrical I/O distance. Co-packaged optics (CPO) technology, a key enabler for next-generation data center architectures, promises unprecedented bandwidth density and power efficiency by tightly integrating optical engines with switch silicon. As power consumption continues to surge with the rapid expansion of AI data centers, expectations are high that CPO will dramatically.
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