NVIDIA Begins Mass Production of Co-Packaged Optical Switches, Expanding Supply Chain

NVIDIA has entered the mass production phase of Ethernet switches based on Co-Packaged Optics (CPO). This shift is broadening the focus of the AI data center competition to include network power efficiency and the supply chain for optical components. NVIDIA announced that its Spectrum-X Ethernet photonics achieves five times the power efficiency of traditional transceiver-based networks, increases the uninterrupted runtime of AI applications by five times, and improves the mean time between failures (MTBF) by ten times. CPO technology reduces power consumption and signal loss by placing switch chips and optical components in close proximity. In large-scale AI data centers, the increasing number of GPUs leads to greater data movement between servers, and the network's power consumption and fault response impact the overall infrastructure efficiency. NVIDIA is collaborating with TSMC, Foxconn, Siliconware Precision Industries, and Boyawei to build its supply chain, intensifying the competition to alleviate bottlenecks in AI data centers through the mass production of CPO switches. There are also analyses suggesting that the investment flow in AI semiconductors is shifting from memory to CPO and optical components.

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