Global supply chain players are expanding into optical communications and optical interconnects.

Generative AI is driving rapid growth in demand for high-speed optical communications. As MicroLED technology offers power consumption as low as 1–2pJ/bit and ultra-low bit error rates (BER) of ≤10⁻¹⁰, it has been emerging as one of the three major short-distance, high-speed intra-rack transmission solutions for scale-up data center networks, alongside active electrical cables (AEC) and VCSEL-based near-packaged optics (VCSEL NPO). As a result, TrendForce projects that the MicroLED co-packaged optics (CPO) optical transceiver market will reach $848 million by 2030.

Global supply chain players are expanding into optical communications and optical interconnects. Microsoft has introduced the MOSAIC Micro LED CPO architecture, while MediaTek provides integrated active optical cable (AOC) solutions. AEC leader Credo Technology Group acquired Hyperlume in 3Q 2025 to broaden its optical interconnect portfolio.

Startup Avicena has developed its ultra-low-power LightBundle technology and is preparing to launch a 512Gbps MicroLED optical interconnect solution, with an 896Gbps version scheduled for advancement in 2Q 2026 to further improve data transmission efficiency and power consumption.

Meanwhile, ams OSRAM has signed a development agreement with a leading global AI data center infrastructure partner to accelerate the commercialization of MicroLED optical interconnects. Its in-house solution—targeted for launch in 2027—is expected to integrate MicroLED chips, optical components, and dedicated ASICs.

In Taiwan, AUO is combining technologies from Ennostar and Tyntek to launch MicroLED CPO on glass RDL interposers. This enables customers to adopt the technology without needing dedicated mass-transfer equipment. Innolux is also expected to utilize resources from bEMC to gradually enhance its vertical integration and competitive edge. PlayNitride has already partnered with Brillink to expand into this sector. In China, HC Semitek has collaborated with Shanghai New Vision Microelectronics to develop MicroLED optical interconnect technologies.

TrendForce highlights that as global alliances continue to take shape, defining product specifications and completing customer sample validation will still require time. Therefore, shipments of MicroLED CPO optical transceivers are expected to begin scaling significantly in the second half of 2028, eventually contributing approximately $848 million in market value by 2030.