AUSTIN, TX – The need for high interconnect bandwidth capacity and improved I/O power efficiency, especially in hyperscale datacenters, continues to drive the development of co-packaged optics (CPO). Optical interfaces can significantly improve I/O density by optimizing solutions along with packaging density, speed per lane, and number of wavelengths per channel. The CPO of the future will allow chip-to-chip photonic connections, which will help enable faster AI clusters. TechSearch International’s latest analysis describes the activities of key companies and research organizations and discusses challenges.

The electronics industry continues to burn through inventory, but this year’s decline in smartphone and PC shipments continues to make it a difficult year. OSAT financials are provided for the first half of the year. Projected recover in these sectors promises to improve the situation next year. Bright spots include Apple’s iPhone market share growth and Huawei’s introduction of its Mate 60 Pro with packages from many domestic Chinese suppliers.

An analysis of the panel fan-out market is provided with an overview of the key players and the markets served. A projection for demand by number of packages and panels is provided, along with a capacity analysis. The report also updates the status of microLEDs with an examination of applications and players. An update on the elimination of per and polyfluoroalkyl substances (PFAS) is included in the report.

The latest Advanced Packaging Update is a 61-page report with full references and an accompanying set of ~70 PowerPoint slides.