TSMC is moving ahead with its CoPoS and COUPE silicon photonics technologies, and that push is drawing a group of AUO-related companies deeper into the co-packaged optics supply chain.
According to ABMedia, Epistar, Tyntek Optoelectronics and LandMark Optoelectronics, all tied to the AUO group, are quietly forming a CPO alliance that spans light emission, sensing and packaging. The report says the companies are trying to secure an early position in the next generation of advanced packaging suppliers built around TSMC.
ABMedia also cited market observers who expect the alliance’s edge in technical validation to gradually turn into revenue as TSMC’s CoPoS ecosystem moves into a production ramp.
CoPoS expands packaging scale while CPO targets transmission limits
The report says CoPoS uses a very large glass substrate instead of a traditional silicon interposer. That design is meant to break through the package-size ceiling facing large AI chips, allowing multiple high-performance GPUs and ASICs to be integrated at high density inside a single package.
That increase in chip density comes with a cost. In ultra-high-compute scenarios, the heat and power draw generated by conventional electrical transmission have become a major obstacle to further scaling, and the physical limits of copper interconnects are getting closer.
ABMedia lays out an optical packaging roadmap that runs from pluggable optics to onboard optics and near-packaged optics, or OBO and NPO, then to 2.5D CPO, 3D CPO and fully integrated laser sources.
In that framework, CPO is designed to address the bottleneck by integrating optical transceivers directly into the package and replacing part of the electrical interconnect with optical signaling. The report says that approach tackles both worsening thermal effects and bandwidth constraints at the same time. With TSMC actively advancing its CoPoS and COUPE silicon photonics platforms, CPO is being treated as a candidate for the next round of packaging iteration, putting more attention on the broader optoelectronic packaging chain.
AUO group assigns distinct roles across the CPO chain
Economic Daily News, cited by ABMedia, says AUO is using a group-wide, vertically integrated strategy to respond to expected CPO demand, with each company taking on a specific function inside the alliance.
On the light-source side, Epistar is focusing on ultra-low-power Micro LED sources for short-distance transmission inside racks. LandMark-KY is targeting longer-distance transmission across data centers by developing high-power VCSEL and CW-DFB lasers to fill supply gaps in long-range optical sources.
On the receiving side, Tyntek is using its Photodiode, or PD, and Micro PD technologies to enter the 800G and 1.6T high-speed optical receiver market. Supply chain sources cited in the report say Tyntek’s key strengths are high response speed and high temperature tolerance, allowing it to detect weak optical signals accurately and convert them into electrical signals for the final stage of the transmission chain.
Packaging integration is being handled by AUO. The report says AUO is providing packaging and testing capacity through a panel-level glass interposer, giving the group a single environment for validating optoelectronic components.
End-to-end validation is seen as a way to cut bottlenecks
ABMedia says market participants believe Epistar, LandMark-KY and Tyntek would have faced a much tougher validation process if they had tried to enter TSMC or top-tier system vendor supply chains on a standalone basis.
Working through AUO changes that setup. Their light-emitting and sensing components can be integrated and tested through a single process, which could shorten validation cycles and reduce the risk of getting stuck in outside qualification procedures.
Supply chain sources also told the publication that AUO’s CPO positioning gives it room to offer higher value-added packaging services than other panel makers. The report describes a chain that runs from optical components through packaging and testing, creating a barrier that is difficult for outside competitors to replicate.
Paul Peng outlines capital reallocation strategy
A few days earlier, AUO and Epistar chairman Paul Peng said at an Epistar earnings conference that the group would pursue a “replace the birds after emptying the cage” strategy, according to ABMedia. The idea is to sell non-core assets, recover capital and redirect resources toward forward-looking areas such as optical communication modules.
Market watchers cited in the report expect the group’s scale and timing advantages in the validation phase to show up later as actual orders and revenue contributions, as TSMC continues to deepen its CoPoS and CPO ecosystem.
ABMedia says CPO-linked names including Epistar, Tyntek and LandMark-KY are gaining attention under TSMC’s CoPoS roadmap.