News: Markets
11 May 2026
Micro-LED CPO optical transceiver market to reach $848m by 2030
Market analyst firm TrendForce’s latest research into the micro-LED industry highlights how generative AI is driving rapid growth in demand for high-speed optical communications. Micro-LED technology offers power consumption as low as 1–2pJ/bit and ultra-low bit-error rates (BER) of ≤10-10. It is also emerging as one of the three major short-distance, high-speed intra-rack transmission solutions for scale-up data-center networks, alongside active electrical cables (AEC) and vertical-cavity surface-emitting laser (VCSEL)-based near-packaged optics (VCSEL NPO). As a result, TrendForce projects that the micro-LED CPO optical transceiver market will reach US$848m by 2030.
Global supply chain players are expanding into optical communications and optical interconnects. Microsoft has introduced the MOSAIC micro-LED CPO architecture, while MediaTek provides integrated active optical cable (AOC) solutions. AEC leader Credo Technology Group acquired Hyperlume in third-quarter 2025 to broaden its optical interconnect portfolio.
Startup Avicena has developed its ultra-low-power LightBundle technology and is preparing to launch a 512Gbps micro-LED optical interconnect solution, with an 896Gbps version scheduled for advancement in second-quarter 2026 to further improve data transmission efficiency and power consumption.
Meanwhile, ams OSRAM has signed a development agreement with a leading global AI data-center infrastructure partner to accelerate the commercialization of micro-LED optical interconnects. Its in-house solution — targeted for launch in 2027 — is expected to integrate micro-LED chips, optical components, and dedicated ASICs.
In Taiwan, AUO is combining technologies from Ennostar and Tyntek to launch micro-LED CPO on glass RDL interposers. This enables customers to adopt the technology without needing dedicated mass-transfer equipment. Innolux is also expected to utilize resources from bEMC to gradually enhance its vertical integration and competitive edge. PlayNitride has already partnered with Brillink to expand into this sector. In China, HC Semitek has collaborated with Shanghai New Vision Microelectronics to develop micro-LED optical interconnect technologies.
TrendForce highlights that, as global alliances continue to take shape, defining product specifications and completing customer sample validation will still require time. Therefore, shipments of micro-LED CPO optical transceivers are expected to begin scaling significantly in second-half 2028, eventually contributing about $848m in market value by 2030.
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