MicroLED CPO optical interconnection becomes popular, and many LED companies disclose layout progress

Recently, TrendForce released a latest survey report. With the rise of generative AI, traditional copper cable solutions for short-distance transmission in cabinets face severe challenges in terms of energy saving and density. In contrast, the Micro LED CPO solution has extremely low unit transmission energy consumption and can significantly reduce the overall energy consumption to about 5% of the copper cable solution. This significant energy-saving advantage makes it regarded as a key alternative for short-distance optical interconnection in AI data centers.

In the trading on March 5, BOE Huacan Optoelectronics, Zhaochi Co., Ltd., Leyard, Qianzhao Optoelectronics, Ledman Optoelectronics, Absen, Jucan Optoelectronics, Sanan Optoelectronics, Ruifeng Optoelectronics and many other LED-related listed companies closed their daily limits. The market has high hopes for the new application of Micro LED technology in the field of AI computing power. For this frontier field, many listed companies have disclosed their latest layout progress:

BOE Huacan Optoelectronics: Huacan Optoelectronics stated that its Micro LED optical interconnect business has entered the sample testing stage. The company's securities department stated that the first batch of relevant product samples have been delivered to customers and are currently cooperating with customers on product optimization. In addition, Huacan Optoelectronics signed a strategic cooperation agreement with Xinxiang Microelectronics earlier this year, linking the dual advantages of chip manufacturing and driver design, focusing on low-power optical interconnect modules required for intelligent computing centers.

Zhaochi Co., Ltd.: Zhaochi Co., Ltd.’s layout in the field of optical communications is accelerating. Relying on its technology accumulation in the fields of Micro LED chips and optical communications, the company has formed a vertical layout from optical chips to optical modules. Its 400G and 800G high-speed optical modules are expected to be shipped in small quantities in the second quarter of 2026, and it continues to promote forward-looking research and development of Micro LED optical interconnect technology.

Leyard: Leyard takes advantage of the same technology. The company stated that its independently developed Hi-Micro substrate-less Micro LED technology uses a laser mass transfer process and is highly consistent with the CPO underlying technology. Leyard not only has LiFi optical communication technology reserves, but also has the mass production capabilities of semi-polar gallium nitride wafers that can support the optical interconnect chip business through its investment in Savlus.

Upstream chip manufacturers such as Sanan Optoelectronics and Qianzhao Optoelectronics have also launched plans in the field of Micro LED optical chips.

Among them, Sanan Optoelectronics has teamed up with Tsinghua University and China Mobile to achieve major breakthroughs in the fields of Micro LED optoelectronic devices and high-speed optical communications. At present, Micro LED light source devices with high-speed modulation capabilities have been successfully developed. After testing, its 3dB modulation bandwidth is expected to exceed 7GHz.

However, some concept stocks have also clarified business relevance. Jufei Optoelectronics issued an announcement stating that the company's Micro LED products are currently mainly used in display terminals and have not yet been used in the CPO field, and no related income has been generated from CPO.

TrendForce analyst Xie Zongqin pointed out that most of the technical solutions are currently in the early design stage, but according to research, some manufacturers have already entered the reliability testing and sample delivery process.

But on the other hand, Xie Zongqin also pointed out that although the solution has broad prospects, there are differences between Micro LEDs for optical communications and display products, which require higher CMOS backplane integration capabilities and fiber coupling accuracy. At present, most of the technical solutions are in the early stage of design or sample delivery. It is expected that under extremely smooth conditions, small-scale introduction of optical communication applications in cabinets is expected to be realized in two to three years.