NVIDIA supply chain expansion drives growth for Taiwanese optical component makers

Taiwanese optical communication suppliers are expanding their roles within the NVIDIA supply chain as Co-Packaged Optics (CPO) technology gains momentum for AI data centers.

Largan Precision has reportedly upgraded from an indirect to a direct supplier by extending its business into Fiber Array Units (FAU). This move integrates the company into the TSMC COUPE process ecosystem, with potential mass production for NVIDIA’s next-generation Rubin Ultra architecture expected as early as the second half of next year. Largan’s technical advantage lies in its alignment precision of under 0.3 microns, which is significantly higher than the 0.5 to 0.8 micron industry standard.

Simultaneously, Broadwind is seeing increased demand for its Shuffle Box, a high-density fiber distribution component used in CPO architectures. As NVIDIA’s Spectrum-X Ethernet silicon photonics switches enter mass production, the demand for optical interconnection components is rising. Analysts estimate Broadwind could capture approximately 50% of the Shuffle Box market share, with significant volume increases projected to begin in the fourth quarter of 2026 and accelerate through the first half of 2027.