News: LEDs
4 March 2026
Micro-LED co-packaged optics cut power consumption to just 5% that of copper cables
The rapid rise of generative AI is driving continuous growth in demand for high-speed data transmission in data centers, notes market research firm TrendForce. Copper cable solutions, traditionally used for short-distance intra-rack interconnects, are increasingly facing challenges in both transmission density and energy efficiency.
By comparison, micro-LED co-packaged optics (CPOs) offer significantly lower energy consumption per bit of data transmission. TrendForce estimates that the technology could reduce overall power consumption to just 5% of that of copper cable solutions, positioning it as a promising optical interconnect alternative driven by its energy-saving advantages.
TrendForce notes that data transmission speeds below 400Gbps are already common in CSP-operated data centers. Since 2025, market demand has driven transmission specifications toward 800Gbps and 1.6Tbps. However, at these higher speeds, traditional copper cables, which consume over 10pJ/bit, would substantially raise overall system power consumption, accelerating the industry’s move toward optics replacing copper.
Taking 1.6Tbps optical communication products as an example, current optical transceiver modules consume about 30W of power. Micro-LED CPO architectures substantially lower energy consumption per transmitted bit, potentially reducing total power consumption by nearly 20 times to about 1.6W. This significantly improves power efficiency while easing difficulties in regard to thermal management.
NVIDIA has already proposed target specifications for its silicon photonics CPO architecture, including ultra-low energy consumption (less than 1.5pJ/bit), high integration density (more than 0.5Tbps/mm2), and high reliability, defined as fewer than 10 failures in time (10 FIT) — equivalent to fewer than one failure per billion operating hours.
Within this context, micro-LED CPOs demonstrate unique advantages. By integrating sub-50µm micro-LED chips with CMOS driver circuits, the architecture can achieve energy consumption of only 1–2pJ/bit. In scale-up data-center networks, the technology is particularly suited for high-speed, short-distance intra-rack interconnects, making it a compelling optical interconnect solution.
TrendForce also observes that the global supply chain is actively expanding into optical communication and interconnect technologies. Microsoft has introduced its MOSAIC architecture, Credo has strengthened the capabilities of its optical interconnects through the acquisition of Hyperlume, and Avicena has developed LightBundle to improve data transmission efficiency and power performance.
TrendForce notes that Taiwanese optoelectronics manufacturers possess strong capabilities in micro-LED fabrication, mature optical design, and light-field control expertise, positioning them well to advance micro-LED as a key light source in optical communications with both efficiency and cost advantages.
Several examples include AUO integrating micro-LED resources from Ennostar with optical receiver technologies from Tyntek; Innolux potentially leveraging integration with best Epitaxy to secure micro-LED supply and gradually build vertically integrated capabilities and competitive barriers; and PlayNitride partnering with Brillink to jointly develop micro-LED optical interconnect technologies.
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