NVIDIA and Broadcom launch CPO switches into mass production amid supply constraints

NVIDIA and Broadcom have moved their next‑generation co‑packaged optics (CPO) switches into volume production. NVIDIA’s Spectrum‑X CPO switch, developed with TSMC using the COUPE advanced‑packaging process, delivers 400 Tb/s and is slated to expand capacity in the second half of 2026. Broadcom’s 51.2 T Bailly CPO switch, produced with partners Delta Electronics and Micas Networks, cuts power consumption by up to 70 % and has already been validated by large‑scale customers such as Meta.

Industry analysts note that the rollout faces critical supply‑chain hurdles. Optical engines, silicon‑photonic wafers and advanced‑packaging capacity are limited, and competition for the same packaging resources from AI chips and high‑performance computing adds pressure. Market reaction has been mixed: shares of optical‑module firms fell more than 30 % after the OFC 2026 conference, while valuation models diverge between technology‑stock premiums and traditional manufacturing multiples. The shift places chip designers like NVIDIA and Broadcom at the center of standards definition, reshaping how optical‑module companies are valued and positioned in the AI compute ecosystem.