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AUO and Innolux pivot to co-packaged optics using MicroLED and glass substrate expertise
Thursday, April 2, 2026 at 02:09 AM
Taiwanese display manufacturers AUO and Innolux are diversifying into semiconductor advanced packaging by offering Co-Packaged Optics (CPO) solutions. AUO is currently sampling CPO products using MicroLED as a light source for short-range data transmission, while Innolux is leveraging its glass substrate expertise to enter the advanced packaging market.
Context
Taiwanese display giants AUO and Innolux are leveraging their expertise in MicroLED and glass substrates to enter the high-growth Co-Packaged Optics (CPO) market. AUO is currently sampling power-efficient MicroLED modules for use as light sources in AI data centers, targeting short-distance transmission of under 10 meters. The company expects to commercialize these optical I/O solutions within two to three years, aiming to establish new AI-driven revenue streams by 2028.
This strategic pivot addresses the "I/O wall" in AI networking, where traditional copper cabling and pluggable transceivers struggle to meet increasing bandwidth and power efficiency demands. Innolux is simultaneously advancing Fan-Out Panel-Level Packaging (FOPLP), utilizing its existing glass panel production lines to provide a cost-effective alternative to wafer-level packaging. By repurposing mature display technologies for semiconductor advanced packaging, both firms are positioning themselves as critical infrastructure providers for next-generation AI supply chains.
Sources (11)
AUO Named Top 100 Global Innovators by Clarivate for the Fifth Consecutive Year - AUOCo-packaged optics: The future of data centers | The Progress Report | CorningGlobalFoundries and Corning Collaborate To Deliver Detachable Fiber Connector Solutions to Scale Next-Generation Optical Connectivity | GlobalFoundries Inc.AUO eyes launch of new optics product - Taipei TimesTaiwan panel leaders pivot: AUO targets CPO, Innolux advances FOPLPWolfspeed produces first single-crystal 300mm SiC waferCo Packaged Optics (CPO) – Scaling with Light for the Next Wave of InterconnectAUO eyes launch of new optics product
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