Capabilities: Co-Packaged Optics (CPO): Revolutionising Data Centres and High-Speed Networks

As data processing requirements in next-generation networks escalate, conventional server architectures face increasing challenges in bandwidth scalability, power efficiency, and integration density. Co-Packaged Optics (CPO) represents a paradigm shift, enabling a new class of network and compute systems that are engineered to meet the growing performance demands of modern digital infrastructure.

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What is Co-Packaged Optics (CPO)?

Co-Packaged Optics is an advanced integration approach that embeds optical interconnects and electronic components within a unified package. Unlike traditional pluggable optics that reside at the edge of the board, CPO integrates the optics close to the switch ASIC, minimizing power loss and enhancing bandwidth scalability. This revolutionary technology enables high-performance data communication with better efficiency, reduced footprint, and improved thermal management.

By colocating photonics and electronics, Co-Packaged Optics technology helps manage the growing demands of data-heavy applications while enabling more compact and thermally efficient system designs. It also reduces power strain by simplifying the processing and transmission of data within the system. As data workloads become more complex and resource-intensive, CPO technology offers a scalable path forward for building efficient digital infrastructure.

How Does Co-Packaged Optics Technology Work?

Co-Packaged Optics technology functions by positioning the switch ASIC (Application-Specific Integrated Circuit) and the optical engine in immediate proximity. Electrical signals generated by the ASIC are directly converted into optical signals within the same package, eliminating long copper traces and reducing signal degradation. This close integration improves signal integrity and enables higher data rates with better energy efficiency. Power delivery and thermal management systems are also co-optimized to support the dense packaging.

In conventional designs, ASICs are mounted centrally on the motherboard, while optical transceivers are placed at the periphery and connected via extended electrical traces. This setup introduces signal degradation, elevated power requirements, and design constraints associated with pin density and routing complexity.

CPO overcomes these limitations by integrating silicon photonics directly adjacent to the ASIC. Using advanced packaging technologies such as flip-chip bonding, through-silicon vias (TSVs), redistribution layers (RDL), and micro-bumping, the architecture enables high-density, short-reach interconnects that maintain signal integrity and reduce power consumption.

This tightly integrated configuration also alleviates the limitations of traditional Ball Grid Array (BGA) and Land Grid Array (LGA) designs, delivering higher throughput and more efficient data movement across the system.

Benefits of Co-Packaged Optics (CPO) Technology

CPO technology is redefining performance benchmarks for advanced network systems and data centre infrastructure.

  • Improved Bandwidth Density: By integrating photonic and electronic components within a unified package, CPO increases the number of lanes and data throughput.
  • Reduced Latency: Eliminating long copper traces and intermediary conversions significantly reduces signal propagation delay, enabling faster communication.
  • Greater Power Efficiency: CPOs can reduce power consumption by up to 40% compared to traditional pluggable optics, lowering operational costs and heat generation.
  • Support for Longer Distances: Replacing high-loss copper traces with low-attenuation optical interconnects enables high-speed data transmission over greater distances within and between data centres.

These benefits make Co-Packaged Optics a forward-looking solution for high-performance computing and next-generation network infrastructure.

Applications of Co-Packaged Optics in High-Speed Networks and Data Centres

As data traffic continues to surge, Co-Packaged Optics is being applied across high-speed networks and data centres to meet rising performance demands. In modern data centres, CPO technology enables optical transceivers to be placed directly alongside switch or compute silicon, streamlining data transmission and supporting massive workloads, such as AI training, real-time analytics, and cloud computing.

This helps reduce reliance on traditional pluggable optical modules, which are becoming less practical at scale due to their size and energy demands.

In compute silicon and high-performance computing (HPC) systems, CPO plays a critical role in overcoming design bottlenecks. By using energy-efficient optical links to boost off-package bandwidth, it slows the rate of pin count and package size increase, both of which are two growing challenges in advanced system design.

This tighter integration allows for more scalable compute architectures without overwhelming socket interfaces, making CPO a practical solution for sustaining performance as data centre infrastructure continues to evolve.

Advantages of Co-Packaged Optics (CPO)

Co-Packaged Optics offers architectural advantages that are particularly valuable in the evolution of server design and high-speed networks.

  • Reduced Channel Length: By moving optical components closer to the switch or compute silicon, CPO shortens the electrical channel between the photonic transceiver and the payload IC. This tighter physical integration reduces signal degradation and simplifies board layout.
  • Increased Electrical Connection Density: CPO allows for more direct electrical paths between optics and electronics. This increase in connection density enhances control and signal fidelity, laying the groundwork for a more stable system design.
  • Higher Bandwidth Density: Co-packaging photonics and electronics within the same footprint enables more data throughput without increasing package size, providing an advantage in dense server environments where space is limited.
  • Improved Architectural Efficiency: CPO simplifies the physical integration of optical and electrical components, reducing reliance on bulky pluggable modules and complex board layouts. This structural streamlining gives system designers more flexibility to scale architectures while maintaining performance and thermal control.

Integration of SERDES and Optical Interface in Co-Packaged Optics

SERDES (Serialiser/Deserialiser) and optical interface electronics in Co-Packaged Optics are brought onto the same package to create a compact, high-performance data path. This close integration reduces signal distance, enabling lower power consumption and enhanced bandwidth performance.

To further optimise efficiency, Co-Packaged Optics replaces traditional long-reach SERDES with eXtreme Short Reach (XSR) SERDES, which requires minimal distance between the ASIC and the optical transceiver. These XSR SERDES utilise streamlined architectures, including simplified CTLE receivers and FFE-based transmitters, to achieve low-latency, high-bandwidth communication with minimal noise.

There is also growing potential to integrate SERDES and optical interfaces into a single integrated circuit (IC). This level of consolidation supports higher signal integrity, greater packaging density, and better scalability in future designs.

By unifying these functions, Co-Packaged Optics technology paves the way for more power-efficient and scalable solutions in advanced data systems.

Why Choose Co-Packaged Optics (CPO) for Your Network and Data Centre?

Today’s high-speed digital infrastructure demands more than incremental upgrades. It needs solutions that are built to scale. With data volumes soaring and traditional server architectures approaching their performance limits, Co-Packaged Optics technology offers a way to break through these constraints, enabling faster data transfer, lower latency, and greater energy efficiency within compact, high-density systems.

For innovative enterprises and infrastructure providers, CPO isn’t just an upgrade but a strategic leap forward. It future-proofs your systems to meet the rising demands of AI, cloud computing, and edge applications.

At the National Semiconductor Translation and Innovation Centre (NSTIC), we collaborate with companies in Singapore, the United States, and Europe to co-develop Co-Packaged Optics technology solutions tailored to their performance, fabrication, and scalability needs. Our goal is to enable the next wave of optical innovation and set new benchmarks for global data infrastructure.

Partner with NSTIC to power tomorrow’s data-driven world with next-generation optical solutions.

Contact Us for Expert Co-Packaged Optics Solutions

Ready to transform your data centre with Co-Packaged Optics? Get in touch with our team at NSTIC for expert guidance on integration and deployment.

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