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Teradyne leads co-packaged optics testing market as Advantest works toward 2026 qualification
Monday, February 2, 2026 at 11:20 PM
Teradyne currently maintains a competitive advantage in co-packaged optics (CPO) testing, while Advantest is projected to qualify its solutions for the CPO testing market by the end of 2026.
Context
Teradyne currently maintains a competitive lead in the co-packaged optics (CPO) testing market, a position reinforced by robust Q4 2024 earnings of $753 million. The company’s semiconductor test segment, which generated $561 million last quarter, is capitalizing on surging demand for AI compute and high-bandwidth memory. This technical edge is vital as data centers adopt CPO to solve power and thermal bottlenecks in next-generation AI infrastructure.
While Advantest holds a dominant 55% to 70% share in the broader AI GPU test market, it is still finalizing its high-volume CPO solutions. In partnership with FormFactor, the company is targeting platform qualification by the end of 2026. This entry is timed to capture a massive opportunity, as the total addressable market for CPO and silicon photonics test equipment is projected to reach $2.04 billion by 2032, driven by the industry's transition toward ultra-fast optical interconnects.
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