NVIDIA Advances Optical Networking with Spectrum-X

According to reports, NVIDIA has officially announced on its website that its first silicon photonics network switch built with Co-Packaged Optics (CPO) technology, Spectrum-X, has been adopted by industry giants Oracle and Meta. NVIDIA highlighted that this marks the "full arrival of the optical communication era in the AI world."

Industry analysts are optimistic. With NVIDIA's push, demand for optical communication modules is expected to surge. Taiwanese companies are positioned to benefit: Lumentum has entered Oracle's optical communication ecosystem, leveraging the rollout of Spectrum-X to expand its AI-focused product shipments. Meanwhile, BroadWave has been selected as NVIDIA's CPO partner and, together with Foxsemicon, will fulfill Meta's optical networking requirements—positioning both as key beneficiaries.

NVIDIA CEO Jensen Huang emphasized that as AI models reach trillion-parameter scales, data centers are transforming into "super AI factories," with Spectrum-X serving as the "neural system" connecting millions of GPUs. In other words, this silicon photonics switch is set to overcome current network limitations, enabling large-scale integration of electronic circuits and optical communication.

Oracle plans to deploy Spectrum-X switches to build gigabit-scale AI supercomputers, while Meta will leverage the Spectrum Ethernet-based switches for its Facebook open switching platform. The simultaneous adoption by these two tech leaders signals NVIDIA's first major commercial push into the CPO market, solidifying its role in the AI optical communication era and boosting Taiwan's optical communication sector.

BroadWave, named by NVIDIA as an optical communication partner at the 2025 GTC conference, provides fiber connectors and optical modules. With Spectrum-X entering commercial production, the company is expected to participate in mass production and capture new market opportunities. Foxsemicon and BroadWave are sharing Meta's optical networking supply chain, coinciding with Meta's $50 billion expansion of its AI data center in Louisiana—four times the original plan—potentially driving sustained growth for these Taiwanese players.

Lumentum, a key provider of Oracle's 800G Active Optical Cable (AOC) modules, is expected to see ramped shipments this year and next. Its packaging, testing, and process design capabilities include laser components and silicon photonics technology. Small-scale production of silicon photonics products began in the second half of last year, with certifications completed for major clients, positioning the company to fully engage the AI market.

Advanced Photonics was the only optical communication company listed in TSMC's silicon photonics ecosystem last year. It has made rapid progress in CPO integration and is working closely with TSMC, mastering fiber array unit (FAU) and FAU core packaging technologies. Small-scale production is expected this year, with volume ramping from 2026.

Industry observers note that as NVIDIA Spectrum-X gains traction with major customers, the Taiwanese supply chain is set to benefit broadly, potentially driving a new wave of demand and sustaining strong growth in shipments.