SIGNALInfrastructure Software·Jun 9, 2026, 7:02 AMSignal75Short term

Co-Packaged Optics Testing Faces Steep Data Center Ramp

Co-Packaged Optics Testing Faces Steep Data Center Ramp

Scaling to tens of millions of CPO units per year requires the industry to first settle on automated, cost-effective methods for electrical and optical testing. The post Co-Packaged Optics Testing Faces Steep Data Center Ramp appeared first on Semiconductor Engineering .

Why this matters
Why now

The accelerating demand for high-bandwidth data centers, driven by AI and other intensive compute, is pushing the limits of traditional interconnects, making co-packaged optics (CPO) a critical, immediate challenge.

Why it’s important

The lack of scalable, cost-effective testing for Co-Packaged Optics (CPO) could significantly hinder the deployment of next-generation data centers, impacting the growth of AI and advanced computing infrastructure.

What changes

The focus is shifting towards developing new, automated testing methodologies for integrated electrical and optical components, away from component-level testing.

Winners
  • · Test & Measurement companies
  • · Specialized ATE providers
  • · Data center operators (long-term)
Losers
  • · Traditional packaging houses (if unprepared)
  • · Companies relying on outdated testing methods
Second-order effects
Direct

Bottlenecks in CPO production due to testing challenges will slow down the adoption of new data center architectures.

Second

Increased investment in R&D for integrated optical-electrical test solutions, driving innovation in ATE and metrology.

Third

The testing complexity could lead to consolidation in the CPO manufacturing and test ecosystem as smaller players struggle to keep up.

Editorial confidence: 90 / 100 · Structural impact: 60 / 100
Original report

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