AI Push Drives Micro-LED CPO Market Toward $848M Opportunity 

Next-generation optical interconnect solutions promise lower power consumption and faster intra-rack communication for future AI data centres. 

Global demand for high-speed optical connectivity is accelerating as generative artificial intelligence workloads reshape data-centre architecture, according to new research from market analyst firm TrendForce. The firm projects that the micro-LED co-packaged optics (CPO) optical transceiver market will grow rapidly, reaching an estimated value of $848 million by 2030.

Micro-LED technology is gaining attention for its ability to deliver ultra-efficient data transmission, offering power consumption levels as low as 1–2 picojoules per bit and extremely low bit-error rates. These performance advantages position micro-LED CPO as one of the emerging solutions for short-distance, high-speed intra-rack communication within scale-up data-centre networks, alongside active electrical cables (AEC) and vertical-cavity surface-emitting laser (VCSEL)-based near-packaged optics.

Major technology companies across the global supply chain are increasingly investing in optical interconnect technologies. Microsoft has introduced its MOSAIC micro-LED CPO architecture, while MediaTek is expanding into integrated active optical cable solutions. Optical connectivity specialist Credo Technology Group strengthened its portfolio through the acquisition of Hyperlume in the third quarter of 2025.

Startup Avicena is advancing ultra-low-power optical communication with its LightBundle technology, preparing to introduce a 512Gbps micro-LED optical interconnect solution, followed by an upgraded 896Gbps version expected in 2026.

- Advertisement -

Meanwhile, ams OSRAM has entered a development partnership with a global AI data-centre infrastructure provider to accelerate commercialization efforts. Its integrated solution — combining micro-LED chips, optical components, and dedicated ASICs — is targeted for launch around 2027.

In Taiwan, display makers AUO and Innolux are advancing micro-LED optical integration through collaborations with ecosystem partners, while PlayNitride is expanding into optical interconnect applications. In China, HC Semitek is working with Shanghai New Vision Microelectronics to develop related technologies.

TrendForce notes that although industry alliances are forming quickly, product standardization and customer validation will take time. Large-scale shipments of micro-LED CPO optical transceivers are therefore expected to accelerate in the second half of 2028, paving the way for substantial market growth by the end of the decade.

- Advertisement -
Loading form…
Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

Industry's Buzz

thyssenkrupp

thyssenkrupp Expands Automotive Electronics R&D In Pune

0
thyssenkrupp Automotive Technology is expanding automotive electronics and software R&D in Pune, planning to grow its engineering team beyond 300 to support global programmes...

Nuuk and EPACK Durable Partner to Manufacture Small Appliances in India

0
Direct-to-consumer brands team up with contract manufacturers to boost domestic production of air fryers and circulator fans.  Direct-to-consumer (D2C) home appliance brand Nuuk has joined...

Potential US Curbs Bears Down on Chinese Optical Chip Stocks

0
Shares of upstream laser chip suppliers suffered steeper declines compared to downstream optical transceiver manufacturers. A report by Morgan Stanley, earlier this month, warned...
Prime Minister Modi

Modi Flags 6G And Domestic Electronics Production At IMC 2026

0
Prime Minister Narendra Modi has outlined India's next telecom priorities at India Mobile Congress 2026, linking the 5G-to-6G roadmap with semiconductor production, domestic electronics...
Fujitsu

Fujitsu-Owned 1Finity Deploys 200+ Engineers To Expand India’s Optical Networking Business

0
Japan’s Fujitsu-owned 1Finity is expanding its India networking business with more than 200 engineers as AI and data-centre growth drives demand for optical networking...

Learn From Leaders

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

India Needs Not a Hundred, But Thousands of Chip Diversified Companies 

0
Can India build a semiconductor ecosystem beyond fabs? Indiesemic believes thousands of diversified chip companies are needed to make that possible. India’s semiconductor push is...

Startups

PowerMon

Aquaexchange Brings Monitoring And Automation To Shrimp Farming

0
The startup has developed an AI- and IoT-enabled platform that helps shrimp farmers manage farms, access financing, monitor operations, and connect with markets. The startup...

Drone-Like Aircraft For Logistics From BluJ Aerospace

0
Hyderabad-based BluJ Aerospace is developing indigenous electric and hydrogen-powered vertical take-off and landing (VTOL) aircraft for remote cargo transport. BluJ Aerospace, a Hyderabad-based aerospace startup...
Jash Jetly, Co-founder and CEO of EVE

“The cloud isn’t the only way to run AI. We’re proving it can happen...

0
A startup is building a decentralised AI and communication network that runs across everyday devices instead of centralised cloud servers. In an interview, Jash...
Mohit Gupta, founder and CEO, TYLsemi

Building AI Chips, One Block at a Time 

0
What if building an AI chip became as simple as assembling reusable blocks? The startup is working to make custom silicon accessible beyond the...
Seema Johar, Co-Founder and Product Director, Compcarta Solutions Pvt Ltd

“We Let Designers Focus on Innovation, Not Infrastructure.”- Seema Johar, Compcarta Solutions

0
In an exclusive interview, Seema Johar of Compcarta speaks with EFY’s Akanksha Sondhi Gaur about why setting up an EDA environment can be harder...