When NVIDIA CEO Jensen Huang wrapped up Computex Taipei 2026, he did not spend much time talking about raw computing power.
Instead, he turned the spotlight on Marvell Technology — predicting the networking and custom chip specialist would become the next trillion-dollar company. The signal was unmistakable: in the AI infrastructure race, the bottleneck has shifted from how fast chips can calculate to how quickly they can talk to one another.
That single observation has sent fresh momentum into the silicon photonics sector — and into the story of one Taiwanese startup about to step onto the public stage.
Why Optical Interconnects Are Now Central to AI
The math behind AI's connectivity problem is stark.
In large GPU clusters, industry data indicates that between 30% and 50% of processor time can be consumed simply waiting for communication units to synchronize and relay computed results. Electrical connections, already strained at current data rates, cannot keep up with the demands of next-generation large-model training.
The industry's answer is optical interconnects — moving data as light rather than electrons — and specifically co-packaged optics (CPO), which integrates optical engines directly into switch and accelerator packages to cut latency and power consumption.
Transceiver bandwidth is on a fast upgrade path toward 800G and 1.6T standards, and CPO scale-up switches are widely expected to begin entering commercial data centers as early as 2027. According to research firm Yole, the global CPO market in data centers could reach $8.1 billion by 2030 — a compound annual growth rate of roughly 130% over six years.
The physical proof arrived at Computex itself. Among the most closely watched exhibits on the show floor was a liquid-cooled AI server rack prototype from Wiwynn, built around a CPO solution developed by U.S.-based silicon photonics firm Ayar Labs. The display drew sustained attention as a concrete demonstration that rack-scale optical interconnects have moved from roadmap to near-reality.
Ayar Labs: The American Unicorn with an NVIDIA Seal of Approval
Founded in 2015, Ayar Labs has built its reputation around in-package optical I/O technology designed to address the dual challenge of bandwidth bottlenecks and high power draw in AI and high-performance computing.
Its TeraPHY optical engine chiplet and SuperNova external light source work together to convert electrical signals into optical signals at the chip level — eliminating much of the energy lost in conventional copper connections.
The company's credibility received a significant boost when NVIDIA made a strategic investment and welcomed Ayar Labs into the NVLink Fusion ecosystem. Huang's endorsement of the optical communications sector at Computex has since amplified international attention on both the firm and the broader silicon photonics field.
BE Epitaxy: Taiwan's Answer to the Silicon Photonics Opportunity
While Ayar Labs occupies much of the international conversation, a Taiwanese counterpart has been quietly building a comparable position.
BE Epitaxy Semiconductor Technology Co., Ltd. (元澄半導體), founded in late 2020 and headquartered in Kaohsiung, is one of Taiwan's few dedicated silicon photonics design service companies — and it is set to list on Taiwan's Emerging Stock Market on June 17.
The company's product portfolio spans silicon photonics chips, light engines, optical transceiver modules, and planar lightwave guides, positioning it as a one-stop provider across high-speed communications and AI computing infrastructure. A secondary R&D center in Hsinchu keeps it close to Taiwan's broader semiconductor ecosystem.
What has drawn particular investor attention is the company's strategic backing. AMD entered a partnership with BE Epitaxy roughly two years ago and last year jointly opened a research and development center in Kaohsiung, targeting advanced silicon photonics chip design and CPO integration services. MediaTek has since followed with its own investment.
Industry observers have described BE Epitaxy as the most technically complete silicon photonics design service operation currently active in Taiwan.
A Sector Catching Its Moment
The timing of BE Epitaxy's market debut is notable.
Huang's post-Computex remarks confirmed a view that has been building among infrastructure specialists: the multi-year AI buildout will require sustained investment not just in GPUs, but in the connectivity fabric that links them.
For Taiwan, which has long dominated the logic and memory sides of the semiconductor value chain, the emergence of homegrown silicon photonics players — backed by leading global chip firms — signals a new frontier opening within its existing strengths.
Whether BE Epitaxy can translate strong industry positioning and heavyweight investors into durable market performance remains to be seen. But with optical interconnects moving from experimental to essential, the company's June 17 debut arrives at a moment when the sector has rarely commanded more attention.
*Adapted from Wealth Invest Weekly, Issue 2408. By Lin Li-hsueh
