[News] Taiwan Chip Giants Capitalize on CPO Boom as MediaTek, TSMC Race Ahead on SerDes

As ultra-fast, high-volume data exchange becomes essential in the AI era, optical communication is becoming a key driver for upgrading data centers and AI infrastructure. According to Commercial Times, the rise of CPO (Co-Packaged Optics) switches is fueling demand for SerDes technology, which converts parallel data into high-speed serial signals for efficient transmission.

Riding this wave, Taiwanese IC design firms like MediaTek and Realtek are actively investing in SerDes technology, as noted by Commercial Times. On the manufacturing side, TSMC stands to benefit from its silicon photonic chip packaging expertise, enabling SerDes and optical components to be integrated through CPO technology, the report adds.

According to the definition by Synopsys, SerDes is a functional block that converts digital data between parallel and serial forms for fast chip-to-chip communication. Today’s high-performance chips in AI, HPC, automotive, mobile, and IoT use SerDes supporting multiple speeds and standards like PCIe, MIPI, Ethernet, USB, and USR/XSR, Synopsys explains.

MediaTek Pushes Forward; Qualcomm Joins the Race

Commercial Times suggests that MediaTek is using heterogeneous integration to combine SerDes and optical modules into comprehensive CPO solutions tailored for data center clients.

As per TechNews, many suppliers offer photonic integrated circuits (PIC), but few deliver complete solutions. That is why MediaTek’s focus on optical CPO heterogeneous integration stands out—especially as they dedicate special effort to mastering cooling technologies and materials, the report suggests.

Meanwhile, Commercial Times notes that on the AI chip front, MediaTek is pushing ahead with next-gen SerDes technology, advancing from 244G to 448G alongside breakthroughs in electro-optical signal conversion. Its subsidiary, Airoha, has already completed customer validation for its 112Gbps SerDes, with mass production slated for 2026, the report adds.

It is also worth noting that Qualcomm, one of MediaTek’s top rivals in mobile SoCs, shows its ambition in SerDes as it made a bold move in June by acquiring Alphawave IP Group for $2.4 billion. As per EE Times, Alphawave’s SerDes technology powers high-speed data transfer, helping Qualcomm build chips that handle today’s massive AI data demands.

On the other hand, Commercial Times suggests that another major Taiwanese IC firm, Realtek, is also developing 224Gbps PAM4 SerDes IP cores, targeting data center, enterprise, and private cloud applications. However, as most traditional IC firms lack PIC know-how, the report notes that major chipmakers are actively seeking strategic partnerships with optical communication players.

TSMC’s Role

Commercial Times highlights TSMC’s crucial role in manufacturing and packaging silicon photonic chips. Although PICs don’t require cutting-edge process nodes, they still rely on silicon-based processes and advanced packaging technologies, making TSMC’s position indispensable.

According to Commercial Times, TSMC is enhancing its fiber alignment capabilities in response to client demands. The significant size disparity between optical waveguides and fibers makes alignment extremely challenging, representing a key technical hurdle for future breakthroughs, as the report suggests.

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