BOSTON, July 24,
2024 /PRNewswire/ -- Over the past decade, the
capacity of data center Ethernet switches has surged from 0.64
Tbps to 25.6 Tbps, driven by the adoption of 64x400 Gbps or 32x800
Gbps pluggable optical transceiver modules. However, these
high-speed modules, within their current form factors, pose
significant challenges. Issues include the required densities of
electrical and optical connectors, as well as escalating power
consumption.
To achieve next-generation optical engines supporting 800 Gbps
and beyond per module, the communication rate must double to at
least 100 Gbps per lane. This increase introduces substantial
signal integrity issues across the switch socket, motherboard, and
edge connector, leading to heightened power dissipation at SerDes
interfaces. In future Ethernet switching, these signal integrity
problems may cause I/O power consumption to exceed that of the
switch core. Additionally, the integration density of standard
pluggable modules is limited by the QSFP/OSFP form factor,
necessitating advanced thermal management solutions not yet widely
available.
Co-Packaged Optics (CPO) presents a promising solution to these
challenges. Unlike traditional pluggable models, CPO integrates
optical modules directly onto the switch ASIC
substrate, reducing electrical reach and effectively addressing
signal integrity issues. This approach has gained traction among
major data centers. However, optimizing the packaging strategy for
CPO remains a topic of ongoing industry discussion and development.
IDTechEx's latest report, "Co-Packaged Optics (CPO) 2025-2035:
Technologies, Market, and Forecasts", explores these advancements
in CPO technology and packaging techniques enabling its
adoption.
The importance of advanced semiconductor packaging
technologies for Co-Packaged Optics (CPO)
The integration of CPO in data centers aims to boost I/O
bandwidth and reduce energy consumption. The way photonic
integrated circuits (PICs) are combined with electronic integrated
circuits (EICs) and switch ICs, can significantly influence the
areal and edge bandwidth density, as well as packaging parasitics.
These factors directly affect the transceiver's I/O bandwidth and
energy efficiency, meaning improper integration can negate the
advantages of silicon photonics.
For CPO, the integration of photonic and electronic components
can be achieved through various methods, each with unique
advantages and challenges. The most advanced, and still in the
R&D phase, is the 3D monolithic integration. This embeds
photonic components within an existing electronic process node with
minimal alterations, co-locating active photonics and driving
electronics within the same die. This reduces parasitics and
simplifies packaging by eliminating the need for interface pads and
bumps. However, monolithic integration typically uses older CMOS
nodes, resulting in suboptimal photonic performance and higher
energy consumption. Despite these limitations, it offers minimal
impedance mismatch and simplified packaging.
Conversely, 2D integration places the PIC and EIC side by side
on a PCB, connected by wire bonds or flip-chip. This method is
straightforward and cost-effective, but introduces significant
parasitic inductance, limiting aggregate I/O due to single-edge
connections. While 2D integration is easy to package, the reliance
on wire bonds constrains the transceiver bandwidth and increases
energy consumption, making it less efficient for high-performance
applications.
3D hybrid integration offers a more advanced solution by placing
the EIC on top of the PIC, via various advanced semiconductor
packaging technologies including Through-Si-Via (TSV), high density
fan-out, Cu-Cu hybrid bonding, and active photonic interposer,
significantly reducing parasitics. The use of advanced
semiconductor packaging technologies in 3D integration allows for
dense pitch capabilities, enhancing performance. However, thermal
dissipation remains a challenge, as the heat generated by the EIC
can impact the PIC, necessitating advanced thermal management
solutions. Despite these thermal challenges, 3D hybrid integration
achieves higher performance due to minimized packaging
parasitics.
2.5D integration serves as a compromise, with both the EIC and
PIC flip-chipped onto a passive interposer with TSVs. This approach
maintains manageable parasitics and dense pitch capabilities
similar to 3D integration but adds complexity with the need for
interposer traces. While 2.5D integration balances performance,
cost, and fabrication turnaround, it incurs higher parasitics than
3D hybrid integration.
In summary, each integration method presents trade-offs between
performance, complexity, and cost, with the choice based on
specific application requirements and constraints.
Co-Packaged Optics (CPO) market trajectory
According to IDTechEx, the Co-Packaged Optics (CPO) market is
projected to exceed $1.2 billion by
2035, growing at a robust CAGR of 28.9% from 2025 to 2035. CPO
network switches are expected to dominate revenue generation,
driven by each switch potentially incorporating up to 16 CPO PICs.
Optical interconnects for AI systems will constitute approximately
20% of the market, with each AI accelerator typically utilizing one
optical interconnect PIC to meet increasing demands for high-speed
data processing and communication in advanced computing
applications.
IDTechEx's latest report, "Co-Packaged Optics (CPO) 2025-2035:
Technologies, Market, and Forecasts", offers extensive exploration
into the latest advancements within Co-Packaged Optics technology.
The report delves deep into key technical innovations and packaging
trends, providing a comprehensive analysis of the entire value
chain. It thoroughly evaluates the activities of major industry
players and delivers detailed market forecasts, projecting how the
adoption of CPO will reshape the landscape of future data center
architecture.
Central to the report is the recognition of advanced
semiconductor packaging as the cornerstone of Co-Packaged Optics
technology. IDTechEx places significant emphasis on understanding
the potential roles that various semiconductor packaging
technologies may play within the realm of CPO.
Key aspects of the report include:
- Market Dynamics: Examination of key players such as Nvidia,
Broadcom, Cisco, Ranovus, and Intel, and the forces shaping the CPO
landscape.
- Innovations in CPO Design: Exploration of advanced CPO designs
and their implications for enhancing data center efficiency and
shaping future architecture.
- Semiconductor Packaging Breakthroughs: Insight into the latest
advancements in semiconductor packaging, including 2.5D and 3D
technologies, and their role in enabling CPO innovation.
- Optical Engines: Analysis of the drivers behind CPO's
performance and efficiency advantages.
- CPO for AI Interconnects: Exploration of how optical I/O can
address the limitations of copper connections in AI applications,
improving efficiency, latency, and data rates.
- CPO for Switches: Assessment of the potential 25% efficiency
gains in high-performance network switches through CPO
integration.
- Challenges and Solutions: Critical review of obstacles to CPO
adoption and strategies to overcome them.
- Future Analysis: Predictions and insights into the next
generation of CPO and its anticipated impact on the industry.
The report is based on extensive research and interviews with
industry experts and provides valuable insights for anyone
interested in gaining a strategic understanding of Co-Packaged
Optics' role in advancing the future of data centers and AI
technology.
- Market Forecasts:
-
- 10-year Data Center Population Cumulative Forecast
- 10-year AI Accelerator Unit Shipments Forecast
- 10-year CPO Interconnect for AI (Optical I/O) Unit Shipments
Forecast
- 10-year CPO Interconnect for AI (Optical I/O) Market Revenue
Forecast
- 10-year CPO-enabled Network Switch Unit Shipments Forecast
- 10-year CPO-enabled Network Switch Market Revenue Forecast
- 10-year Total CPO Market Revenue
For more information on this IDTechEx report, including
downloadable sample pages, please visit www.IDTechEx.com/CPO.
For the full portfolio of related research available from
IDTechEx please see www.IDTechEx.com/Research/Semiconductors.
About IDTechEx
IDTechEx provides trusted independent research on emerging
technologies and their markets. Since 1999, we have been helping
our clients to understand new technologies, their supply chains,
market requirements, opportunities and forecasts. For more
information, contact research@IDTechEx.com or
visit www.IDTechEx.com.
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