With in-depth research, China's NPO optical engine technology continues to advance, which will provide favorable conditions for the development of the NPO industry

NPO (Near Package Optics) refers to an optical interconnection packaging technology that moves the optical engine from the pluggable position on the switch to a location closer to the switching chip. Compared to CPO (Co-Packaged Optics), NPO offers advantages such as high technological maturity, good maintainability, and high flexibility, boasting broad application prospects in data centers, supercomputers, and other fields.

NPO is typically composed of components such as M-SUB process substrates, optical engines, MT ferrules, and PCBs. The optical engine is the core component of NPO, playing a crucial role in its optoelectronic conversion efficiency. With in-depth research, China's NPO optical engine technology continues to advance, which will provide favorable conditions for the development of the NPO industry.

According to the '2026-2031 NPO (Near Package Optics) Industry Market In-Depth Research and Investment Prospects Forecast Analysis Report' released by the Syc Research Industry Research Center, NPO is primarily applied in data centers, supercomputers, and other fields. In data centers, NPO can be used to connect optical modules. In recent years, benefiting from the growth in computing power demand, the pace of technological updates and iterations in optical modules has accelerated. It is expected that by the end of 2026, global shipments of 1.6T optical modules will exceed 15 million units. Against this backdrop, the NPO industry will embrace development opportunities.

CPO (Co-Packaged Optics) offers advantages such as low power consumption, high-speed data transmission, and shortened electrical connection distances, making it suitable for high-computing-power application scenarios. However, at present, CPO faces challenges in achieving large-scale production and application due to factors such as complex process chains, high difficulty in integrating heterogeneous chips, and imperfect industry standards. As a transitional solution for CPO, NPO offers relatively high cost-effectiveness, and its market space is expected to continuously expand in the future.

Attracted by market prospects, multiple global enterprises have positioned themselves in the research, development, and application sectors of the NPO industry. Major participants in the global NPO market include Microsoft (USA), Google (USA), NVIDIA (USA), Intel (USA), and Broadcom (USA).

Domestically, NPO does not rely on specific chip manufacturers, resulting in a relatively low barrier to entry for the industry. The number of Chinese companies positioning themselves in this sector continues to grow, including TFC Communication, Zhone Technologies, HG Tech, Yuanjie Technology, Unitek, Eoptolink, Zhishang Technology, and USI Electronics. Zhone Technologies, a leading Chinese optical module company, possesses mature pluggable optical module technology and is actively advancing the research and development of NPO and CPO. It has assisted key clients in developing customized products. HG Tech's 3.2T NPO product is planned to achieve mass shipment in the second half of 2026.

An industry analyst from Syc Research stated that NPO, as a transitional solution for CPO, is experiencing accelerating industry development. Currently, multiple global enterprises possess research, development, and production capabilities for NPO and its related products, with its market prospects expected to remain positive in the future. Compared to developed countries overseas, China's NPO industry started relatively late but is developing rapidly, with some companies already launching high-performance products. With future technological advancements, the development trend of China's NPO industry will continue to improve.

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