NVIDIA and Broadcom CPO switch rollout

In late July 2026, NVIDIA and Broadcom announced that their next‑generation co‑packaged optics (CPO) switches had entered volume production. NVIDIA’s Spectrum‑X switch, built with TSMC’s advanced packaging, offers 400 Tb/s, while Broadcom’s 51.2 T Bailly switch promises up to 70 % lower power use. Both companies highlighted limited supply of optical engines, silicon‑photonic wafers and advanced‑packaging capacity, noting competition from AI‑chip and HPC packaging needs. Market reaction was mixed, with optical‑module stocks falling sharply after the OFC 2026 conference.

NVIDIA senior vice‑president Gilad Shainer later stated that these new optical‑communication modules would become the “main growth engine” for AI data‑center networks requiring bandwidth ten times higher than current architectures. This announcement fueled a rally in the Chinese optical‑communication sector. Taiwan‑listed firms such as Lian‑Ya and Zhi‑Bang surged to limit‑up levels, while mainland Chinese firms like Zhongji Xuchuang, New Easy Sheng, and Tianfu Communications reported explosive revenue growth. This shift from copper to optical links propelled the China 5G ETF toward near‑100 % annual returns.

As the rollout progresses, Taiwanese suppliers are deepening their integration into the NVIDIA supply chain. Largan Precision has reportedly transitioned from an indirect to a direct supplier by expanding into Fiber Array Units (FAU), aligning with the TSMC COUPE process for potential production related to NVIDIA’s Rubin Ultra architecture. Additionally, Broadwind is seeing increased demand for its Shuffle Box, a high-density fiber distribution component. Analysts estimate Broadwind could capture roughly 50% of the Shuffle Box market, with volume increases projected to accelerate through the first half of 2027.