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Co-packaged optics (CPO) is a disruptive approach to increasing the interconnecting bandwidth density and energy efficiency by dramatically shortening the electrical link length through advanced packaging and co-optimization of electronics and photonics. The gap between application requirements and the capability of conventional pluggable optics keeps increasing, a trend that is unsustainable. The conventional pluggable optics increases at a much slower rate than that of datacenter traffic.

Furthermore, nearly three-fourths of the datacenter traffic resides within datacenters. Due to the rise of 5G, IoT, AI, and high-performance computing applications, datacenter traffic has grown at a compound annual growth rate of nearly 30%.