Five Things You Didn’t Know About Co-Packaged Optics

By Chee Ping Lee

November 3, 2026

Why advanced packaging will determine whether CPO can scale for the AI era

Co-packaged optics technology is often described as a photonics breakthrough. But its commercial success will depend just as much on advanced packaging: how optical and electronic components are integrated, connected, protected, and manufactured repeatedly at scale. 

Artificial intelligence is driving unprecedented demand for computing power and data movement. As processors become more powerful, the electrical connections that move data between them are becoming a growing constraint. They consume power, create heat and can limit how quickly information moves through an AI system.

Co-packaged optics (CPO) offers a new approach. It brings optical engines much closer to the processors and switches they serve, shortening the high-speed electrical path between the processor or switch and the optical engine, so data can transition to optical transmission closer to the source. The goal is higher bandwidth, lower interconnect energy per bit, and lower latency.

But a key point about CPO is often overlooked: advanced packaging decisions determine whether silicon photonics can be integrated tightly enough with electronics to work reliably in real-world systems. Here’s why:

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