[News] Largan Precision Reportedly Teams Up With TSMC on CPO; Samples Said to Involve AMD

As AI data transmission volumes continue to surge, the shift toward optical interconnects is gaining momentum, with Taiwan’s Largan Precision, a key optical lens supplier in Apple’s supply chain, reportedly poised to benefit. According to Economic Daily News, sources say Largan is expanding into the AI market by working with TSMC on co-packaged optics (CPO), supplying collimator components. Sample products have reportedly been delivered to TSMC and are undergoing testing as part of a project involving AMD.

Largan Precision has declined to comment on the matter. However, the report adds that sources note the company maintains strict internal confidentiality around its CPO development efforts.

Largan’s Reported Role in Co-Packaged Optics

As the report points out, Largan is advancing its CPO push through its subsidiary PhotoniCore Technologies, which specializes in fiber-laser technologies. Leveraging its prism-based optical expertise, Largan is developing collimator components and is said to be rapidly allocating capacity at a new plant to establish dedicated CPO production lines.

Regarding how Largan’s technology is applied in CPO, the report notes that co-packaged optics rely on fiber array unit (FAU). Within the FAU, light emitted from the photonic integrated circuit (PIC) is directed upward, while optical fibers are arranged horizontally. To efficiently couple the PIC’s output into the fibers, prisms are used to redirect the light path. As highlighted in the report, Largan draws on its strengths in precision machining and automation to develop prism-based collimator components capable of meeting these stringent alignment and focusing requirements.

Beyond its CPO initiatives, Largan is also ramping investment in its core smartphone lens business. Economic Daily News notes that following the completion of a new plant, the company’s 2025 capital expenditure is set to reach a new high, estimated to exceed NT$13 billion—representing year-on-year growth of more than 25%.

Why Co-Packaged Optics Are Gaining Momentum

Demand for co-packaged optics is rising. As the report indicates, surging AI data transmission volumes are pushing traditional copper-based interconnects toward their limits. The report further notes that as the industry enters the 1.6T optical transmission era, conventional pluggable optics have encountered development bottlenecks. Against this backdrop, CPO has emerged as a key next-generation interconnect technology.

Notably, TSMC has been a forerunner in silicon photonics. As noted by Liberty Times, the company’s COUPE (Compact Universal Photonic Engine) completed verification in the first half of 2025, with NVIDIA’s Spectrum-X adopting the technology. NVIDIA’s first CPO switch, Spectrum-X—adopted by major users such as Oracle and Meta—offers 3.5× better power efficiency, 10× higher network resiliency, and 1.3× faster deployment than traditional network architectures, according to NVIDIA.

Read more

• [News] Silicon Photonics Momentum Builds: Samsung Ramps R&D in Singapore, UMC Teams With IMEC
• [News] AMD Reportedly to Set up Silicon Photonics R&D center in Southern Taiwan with NT$8.64B Investment

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