MicroLED transceiver supply chain alliances take shape
TrendForce’s latest research into the microLED industry highlights how generative AI is driving rapid growth in demand for high-speed optical communications, with microLED emerging as one of the three major short-distance, high-speed intra-rack transmission solutions.
MicroLED technology offers power consumption as low as 1–2 pJ/bit and ultra-low bit error rates (BER) of ≤10⁻¹⁰. It’s also emerging as one of the three major short-distance, high-speed intra-rack transmission solutions for scale-up data centre networks, alongside active electrical cables (AEC) and VCSEL-based near-packaged optics (VCSEL NPO).
As a result, TrendForce projects that the microLED CPO optical transceiver market will reach $848m by 2030. Global supply chain players are expanding into optical communications and optical interconnects. Microsoft has introduced the MOSAIC microLED CPO architecture, while MediaTek provides integrated active optical cable (AOC) solutions. AEC leader Credo Technology Group acquired Hyperlume in 3Q25 to broaden its optical interconnect portfolio.
Startup Avicena has developed its ultra-low-power LightBundle technology and is preparing to launch a 512 Gbps microLED optical interconnect solution, with an 896 Gbps version scheduled for advancement in 2Q26 to further improve data transmission efficiency and power consumption.
Meanwhile, Ams Osram has signed a development agreement with a leading global AI data centre infrastructure partner to accelerate the commercialisation of microLED optical interconnects. Its in-house solution—targeted for launch in 2027—is expected to integrate microLED chips, optical components, and dedicated ASICs.
In Taiwan, AUO is combining technologies from Ennostar and Tyntek to launch microLED CPO on glass RDL interposers. This enables customers to adopt the technology without needing dedicated mass-transfer equipment. Innolux is also expected to use 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 microLED 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 microLED CPO optical transceivers are expected to begin scaling significantly in the second half of 2028, eventually contributing approximately $848m in market value by 2030.
