[News] Samsung Electro-Mechanics and LG Innotek Step Up CPO Push, Reportedly Testing Substrate Component Samples

Samsung Electro-Mechanics and LG Innotek have reportedly initiated efforts to secure co-packaged optics (CPO) technology. According to ETNews, sources indicate that both companies have accelerated their push to integrate CPO into AI semiconductor substrates. Moving beyond the conceptual stage, they have entered early-phase development and begun evaluating prototype components needed to implement CPO on substrates.

As the report indicates, both companies have conducted sample testing of components such as optical waveguides, which act as pathways for transmitting optical signals. Although still at an early stage, they have moved into more active efforts to secure CPO technology.

Samsung Electro-Mechanics and LG Innotek are tasked with manufacturing the semiconductor substrates that will support CPO. As noted in the report, they are expected to incorporate various components onto these substrates to enable CPO functionality in final packaged semiconductor products. Key elements include electro-optical switches, transceivers, and optical interconnect components such as cables and waveguides.

These developments are consistent with the companies’ recent moves. As the report notes, Samsung Electro-Mechanics has decided to expand investment in embedded substrate technology, which integrates passive components such as MLCCs directly into the substrate. Industry observers suggest this could serve as preparatory work for CPO, as it helps free up space on the substrate to accommodate optical components.

As for LG Innotek, the report notes that CEO Moon Hyuk-soo had previously signaled potential CPO development during a shareholder meeting last month. Although it was described as being under review at the time, the company is now understood to have moved into actual technology development, indicating a shift toward full-scale commercialization.

Rising demand for CPO in AI data centers is expected to drive development across the semiconductor supply chain. TrendForce forecasts that CPOs will steadily increase their share of optical communication modules in AI data centers, with penetration potentially reaching 35% by 2030.

CPO Adoption Gains Momentum in AI Semiconductor Ecosystem

Globally, ETNews notes that companies such as NVIDIA, Broadcom, and Marvell are advancing efforts to incorporate CPO into AI semiconductor chips. Meanwhile, foundries including TSMC and Samsung Electronics are preparing packaging processes for CPO-based AI chips, with TSMC targeting mass production this year and Samsung aiming for 2028. TechNews adds that OSAT giant ASE recently announced that mass production of CPO is expected to begin this year.

Notably, according to The Elec, Samsung’s foundry business plans to launch optical engines based on thermo-compression bonding in 2027, followed by turnkey CPO services in 2029.

Meanwhile, industry observers cited by ETNews note that Korea is seen as lagging behind overseas markets in the commercialization of CPO. Given the critical role substrates play in CPO systems, companies will need to accelerate development to secure early market leadership.

Read more

• NVIDIA Compute Architecture Paves the Way for Scale-Up Optical Interconnects; CPO Penetration in AI Data Centers Expected to Rise Steadily, Says TrendForce
• [Insights] NVIDIA’s US$2B Marvell Deal: What’s the Strategic Significance for CPO and AI Interconnects?
• [News] Silicon Photonics Race Intensifies as TSMC Targets 2026 COUPE Production, Samsung Eyes 2029 CPO Turnkey

(Photo credit: NVIDIA)